[gohmw]

Hi Atlanta Tax Expert,

Here's my situation:
I'm on H1B and my wife is on H4. I've 2 kids. We arrived in California on 20th July'07. I was here on H1B with my wife (H4) from May 2001- July 2003. We filed taxes as US residents for that 3 years. I'm a Singaporean.

My questions:
(1) I didn't realise till recently that I have to apply for a sailing permit before I leave the US. Will there be any complications now that I'm back here again? I did file my tax return for the year that I left.

(2) Should I be filing for the resident/non-resident return? I don't think I have enough 183days to fit into the residency test, but do I have an option to file as resident?

Would really appreciate your help. Thanks.

-Gohmw-

[AtlantaTaxExpert]

1) The sailing permit is most for high-income earners. There should probably no problems.

2) You can file jointly with your wife as resident aliens if you will be in the U.S. through May 2008.

[MukatA]

You were nonresident for 2006. You returned to the U.S. in July 2007. So you can file your 2007 tax return as residents Married Filing Jointly only when you complete the residency test in 2008.

[gohmw]

1) The sailing permit is most for high-income earners. There should probably no problems.

2) You can file jointly with your wife as resident aliens if you will be in the U.S. through May 2008.

Thanks for your reply.

So, does it mean that I need to apply for an extension to file my 2007 returns in May/June '08? If so, I can I do it?

Thanks once again.
-Gohmw-

[MukatA]

Yes, you will file extension. Mean while you can complete your tax retun and make sure to pay the due taxes before April 15, 2008.

[AtlantaTaxExpert]

Agreed.

If additional taxes are owed, they are paid when you submit the extension request.

If a refund is due, you just file the extension.