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sharmavk76 · Mar 27, 2008, 09:13 PM

I am working in USA from 15 Sep 2007. I came along with wife and kid. I am on L1 Visa and my wife and kid are on L2 visa.

(1) Can you please let me know which Income tax form is required to fill and submit in IRS office?

(2) Do I need to show Indian salary detail? If yes then how?

Thanks
Vivek Sharma

MukatA · Mar 28, 2008, 03:43 AM

Chiice 1: File nonresident tax return. You will only get exemption of $3,400. You can deduct moving expenses for family on form 3903 and itemized deductions (included state taxes paid). Normally you should choose this only when all your deductions are equal to or more than your total income.

Choice 2: You can file resident tax return as Married Filing Jointly.
You will have to wait for 5 months to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2008. You will get standard deduction of $10,700 and exemptions for both of you and the kids. You will also get child tax credit of $1,000 each.

You must both declare your worldwide income for 2007. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.
About foreign tax credit: Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses. Use form 3903.
About Moving Expenses: Your U.S. Tax Return: Moving Expenses

sharmavk76 · Mar 28, 2008, 06:46 PM

Please advice me to find good consultant to file my tax return.

Thanks

forneeraj · Mar 28, 2008, 07:34 PM

Hi MukutA

I have similar situation.
I talked with IRS helpdesk and they replied that first I should apply for extension using 4868. Then once I complete SPT this year I have to file as Dual Status Alien with the restriction that I cannot claim standard deduction for my spouse. I can only claim itemized deductions.
Is that correct?
If yes then how can I claim standard deduction as mentioned by you in above reply?

MukatA · Mar 29, 2008, 09:39 AM

Originally Posted by sharmavk76

Please advice me to find good consultant to file my tax return.
Thanks

You should contact AtlantaTaxExpert at [email protected]

MukatA · Mar 29, 2008, 09:42 AM

Originally Posted by forneeraj

Hi MukutA

I have similar situation.
I talked with IRS helpdesk and they replied that first I should apply for extension using 4868. Then once I complete SPT this year I have to file as Dual Status Alien with the restriction that I cannot claim standard deduction for my spouse. I can only claim itemized deductions.
Is that correct?
If yes then how can I claim standard deduction as mentioned by you in above reply?

What type of visa do you have? Also, if you can't claim standard deduction for your spouse, then why should you wait to become dual status.

My reply to sharmavk76 is correct.
Read Publication 519: Tax for Aliens Internal Revenue Service

forneeraj · Mar 29, 2008, 10:18 AM

Hi Mukut,

Sorry I didn't mention. I am also on L1 visa.
Please don't take me wrong I am trying to explore options only. Actually I checked in publication 519 and couldn't find this option. Can you please tell me how this will work.
After completing my SPT this year when I am filing for tax return I should file as dual status or as Resident alien?

Thanks