[kalyanakrishna]

Hi,

I am earning salary from Oct 2007.

My presence is the US is as follows:
Jan 2006: 4 days
2007:
31 days - B1/B2 - First trip
July 22 - Oct 1 : B1/B2 - Second Trip
Oct 1 - Dec 31: H1B - earning salary
Result: I meet the SPT (Substantial presence test)

Sources of Income:
From Jan 1, 2007 - Till Oct 1, 2007 - no salary in the US. Not employed in the US
From Oct 1, 2007 - Dec 31, 2007 - salaried in the US.
Sale of stocks purchased when in India but sold when in the US and proceedings are deposited in a US bank

Citizenship: India

Since I pass the SPT, should I file a resident alien status? Which form? 1040?
If I file under resident alien, do I have to report only US income or income from India as well?

I have filled up my 1040 and ready to file but then I realized if I am filing as resident alien, am I required to report non-US income as well?

I am confused!

Thank you for your time.

Regards,
Kalyan

[MukatA]

If you are Single, you become Dual status resident if you meet the SPT. You don't get standard deduction.
You should file form 1040NR or 1040NR-EZ as nonresident, and report only the U.S. income.

[kalyanakrishna]

Thank YOu. How is the taxation done for dual status citizens? Can you point me to the right publication?

[dwtaxpayer]

You could choose one of these: to file 1040 with itemized deduction(schedule A) but without standard deduction as partial resident or to file 1040NR(or 1040NR-EZ) as non-resident. Choose the better one.

[AtlantaTaxExpert]

No, if you are filing dual-status, you have to file BOTH Form 1040NR and 1040.

The Form 1040NR provides mostly demographic data and visa information. The actual taxes are computed on the Form 1040.

[dwtaxpayer]

Yes, You are right. I just figured out I can file 1040NR instead of the statement which explains I am a dual status alien.
Thanks

[MukatA]

Nonresident tax return is easier to do than Dual status tax return.
For 2008, you will file as resident.