[gkrishna]

Hi,

I am an Indian Citizen entered US(Dallas, TX) for the first time on 28th July 2007 with H1-B Visa.
And my spouse entered US for the first time on Dec 1st 2007 with H4 Visa.
I have not changed my visa status to any other visa and I have travelled to India in Nov 2007 for 15 days, came back to US on Dec 1st 2007.

Please find the details of my stay in US below:
Number of days I lived in US in the year 2007 - 157 days
Number of days I lived in US in the year 2008 - 36 Days

I have the following queries :

1. Which form I have to use to file tax return for 2007 and what is my status?
2. Which option do I have to select on form W-7 for "Reason Applied"?
3. I have paid my taxes in India for my Indian Income till July 2007. Will I have to also show that income in the tax return? :confused:
4. Also my W-2 form shows Social Security tax and medicare tax withheld. Do I have to list them as well in the tax return form?

Please help me.
Thanks in Advance.

[MukatA]

You can file resident tax return as Married Filing Jointly. You will have to wait for about 4.5 months to file your tax return till you meet the Substantial Presence Test in 2008.
You will get standard deduction of $10,700 and exemptions for both of you.

You must both declare your worldwide income for 2007.
You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return. For Reason applied select spouse of resident. You can also deduct moving expenses. Use form 3903.

[The Texas Tax Expert]

With regard to the foreign taxes paid in India, you will qualify for a foreign tax credit, when you report your worldwide income in the US.

[AtlantaTaxExpert]

Agreed.