[magicman2007]

Hi,

This is my second question, I did not mention a few points in the first question so I am asking again.

I and my wife arrived in USA for the first time on 14th July 2007. So I will be NRA for the year 2007 in US. I am on L1B visa and my wife is on L2 visa. My Wife got EAD to work in USA on 1st Oct 2007 and she is not having any income in year 2007.


My questions are:

1. Can I file 1040 form for 2007 return instead of 1040NR as I am an Indian and USA have tax treaty with India?
2. If I have to file 1040NR for 2007 return can I claim Excemption for my wife and Deductions of $10,700 under India and USA tax treaty?
3. What form should I file 1040 / 1040NR for 2005 return in order to get maximum tax benefit?

Kindly reply.

Thanks & Regards.

[AtlantaTaxExpert]

Redundant post:

1) Yes, if you file jointly with your wife and you BOTH choose to be treated as resident aliens for ALL of 2007. That means claiming ALL of your 2007 world-wide income.

2) You can file Form 1040NR, but you cannot claim your wife, because she has to file her own return to report her U.S.-sourced income using Form 1040NR.

3) Option #1 is probably best, but we must model it BOTH ways and compare the results to be sure.

I can professionally help you with this process. Contact me via email if you are interested.