[nixermac]

Hello Tax Gurus,
I have multi-part queries. I sure hope I am not asking too much. I have gone through the Publication 519 and this site too. Yet I have questions and sure hope these would help others too.
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My wife, child and I came to US on 9/9/2007 and have been here since then. What are my options to file my taxes?

Me and my wife have our SSN. I have to file a W-7 for my child for ITIN.

Part 1
1. Do I qualify as a resident / non-resident alien?
2. Can I opt for "First Year Choice"?
3. How do I calculate the number of days for "FYC"?
4. How many days do I need to wait or do I need to request extension?
5. Which form should I choose (1040, 1040A, 1040NR)?
6. Can I claim deductions for my wife (filing jointly) and child?
7. Since the country I come from does not have a Tax treaty with US do I need to file for dual-resident situation?
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Part 2
I filled in my data on TurboTax to verify my filing and it saves my return on a 1040A form but does not include deductions for my child.

1. Do I assume that we can file 1040A as TurboTax makes that choice?
2. What if I add the deductions for my child and file 1040A?
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Part 3
I had visited US in 2005 and 2006 on B1 and was here purely on business visits.
In 2005 I was here for a total of 20 days.
In 2006 I was here for a total of 90 days.

1. Do I need to show that I was here on earlier occasions?
2. What if I don't want to?
3. Will it help if I do?

Thanks for your help in advance.

Nic.

[nixermac]

Looks like no one really cares answering my questions here. Is there no one here with some advice?? Whoa!

[MukatA]

Good you came to U.S. on 09/09/07 and are staying here, what is your visa type?
Visas on which there are treaty benefits for some countries, are not eligible for First Year Choice.

[nixermac]

Good you came to U.S. on 09/09/07 and are staying here, what is your visa type?
Visas on which there are treaty benefits for some countries, are not eligible for First Year Choice.

My bad. I should have posted our visa type. I have L1 and my wife and child on L2. Hope this helps.

I have been trying to decipher the US Tax system but not much success. After I posted, I checked the IRS site if there was a treaty with India (this is where I come from) and you bet there is one. As usual the treaty is not so easy for mortals like me to understand.

Thank you Mr. Mukat for asking the question and helping me.

Nic.

[MukatA]

L1 is work visa and therefore it has no treaty benefit.
You can file resident tax return as married filing jointly and cliam you child after you meet SPT in 2008. You will attach W7 of your child with the tax return.

Choice 2: File as nonresident. You will only get your personal exemption.

[nixermac]

<snip> and cliam you child after you meet SPT in 2008. You will attach W7 of your child with the tax return.

Choice 2: File as nonresident. you will only get your personal exemption. </snip>

MukatA,

Thank you for answering my queries. I am obliged.

1. Does this mean that I can file 1040A with dependent child option now or will it be for the tax filing for 2008? I have prepped the W7 for my child. Do I file it now.

In your opinion when do I meet the SPT in 2008.

Also I wanted to know if I need to file 1099. I have not received this from my bank as the total interest earned on my SA about 3c.

Nic.

[MukatA]

You will file after
1/3 (days in 2007) plus days in 2008 =183 days. So after you complete the required days in 2008, you can file the resident return for 2007.
You will attach a statement that we both choose to file as residents as first year choice.

[nixermac]

You will file after
1/3 (days in 2007) plus days in 2008 =183 days. So after you complete the required days in 2008, you can file the resident return for 2007.
You will attach a statement that we both choose to file as residents as first year choice.

Thank you MukatA.

Since I have completed 114 days in 2007 I can claim 38 days in 2007 (114 / 3). If I file before April 15 then the total days are 144, 36 days shy of 183. Effectively the date I should file is on or after May 22, 2008 as that is the date I complete the SPT for 2008.

The Publication 519 page 9 (Statement required to make the first-year choice) specifies "You cannot file Form 1040 or the statement until you meet the substantial presence test for 2008."

In such a scenario do I have to file Form 4868?
It is expected that I pay the taxes while filing this extension request. Since my federal deductions have already been cut by my employer, do I need to pay any taxes?

Can I claim my child as a dependent in 1040A while filing in May? If I can then this will get me a refund on $1000 too.

Thank you again for your time and patience.

Nic.

[MukatA]

If you wish to file as residents, then you must wait. You will file for extension.
Meanwhile do your tax return. If you owe taxes, then send them with you extension form

[nixermac]

If you wish to file as residents, then you must wait. You will file for extension.
Meanwhile do your tax return. If you owe taxes, then send them with you extension form

Thank you MukatA,

Your replies have been very helpful. Considering the limitations on web-based conversation, I have been able to understand the Pub. 519 with more clarity.

Nic.

[MukatA]

So the conclusion: you can file resident tax return after May 22, 2008. You will file extension Form 4868 on or before April 15, 2008. The extension does not give you extension to pay your due taxes.