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biswadeepsen · Nov 7, 2012, 12:25 PM

I came to US on an L1 visa in 2012 (from India) and completed 183 days of continuous stay in US. Hence, I can be termed as a Resident Alien. But my wife and daughter came to the US in Oct 2012, and they would not be considered Resident Aliens (as their stay in US for 2012 is less than 183 days).

My questions are:

1) Can I file in 2013 "married filing jointly" even if my wife is non-resident alien ?
2) Logically my number of allowances are 4 (with non working spouse, dependent kid ,having 1 job and nobody else claiming me as dependent). Does it contradict with the fact that I am SINGLE as per W4 as my wife and kid are NRA (not completing 183 days in current year)?

Kindly advise...

Biswadeep

taxesforaliens · Nov 7, 2012, 12:35 PM

If you came any time after January 1st, 2012, you are a dual status alien, not a resident alien.
But since you are a resident alien at the end of the year, you and your wife can choose to be treated as resident aliens for the entire year. You would need to add a statement to your return making this choice.
That would mean that both of you need to report your worldwide income for the entire ear, but you can use form 1116 to get a credit for foreign paid taxes on income abroad.
You can also claim your child as dependent.

biswadeepsen · Nov 7, 2012, 01:40 PM

Originally Posted by taxesforaliens

If you came any time after January 1st, 2012, you are a dual status alien, not a resident alien.
But since you are a resident alien at the end of the year, you and your wife can choose to be treated as resident aliens for the entire year. you would need to add a statement to your return making this choice.
That would mean that both of you need to report your worldwide income for the entire ear, but you can use form 1116 to get a credit for foreign paid taxes on income abroad.
You can also claim your child as dependent.

THANK YOU SIR... couple of more questions:

1) So, as per you, I can file "married filing jointly" with my NRA spouse but for that I have to declare my global income (in my case income earned in India IN 2012 prior to coming to US... My spouse's income is nil, as she is a homemaker). WILL THERE BE ANY CHANCE OF DOUBLE TAXATION WHEN I FILE FOR FORM 1116 WHEN I FILE MY INCOME TAX IN 2013?
2) My marital status as per my W2 for 2012 would be SINGLE as I have to declare myself as SINGLE in the W4 as my wife is a NRA in 2012. Does that SINGLE status contradict when I file for Income Tax as "married filing jointly" ?

Kindly advise.. Thanks!

taxesforaliens · Nov 7, 2012, 02:22 PM

Form 1116 is used to claim a credit for foreign paid taxes. This form is to avoid double taxation. If the taxes in the foreign country are significantly lower that what you would pay in the US, you might have an additional tax liability in the US. However, you gain a lot of benefits from being able to file a joint return. I would guess that filing jointly is more beneficial.
To be sure, you could prepare one return as "dual status alien" filing married filing separately and one as married filing jointly.
Dual status returns are however not easy to do if you have no experience.

2) that status written on your W4 is not significant. The W4 is only relevant for your tax withholdings. As a NRA you are required to write SINGLE so that withholdings are correct. On your tax return you file with your actual status. That would be eiher married filing separately (if you file a dual status return) ir married filing jointly (if you file jointly).

biswadeepsen · Nov 7, 2012, 02:30 PM

Originally Posted by taxesforaliens

Form 1116 is used to claim a credit for foreign paid taxes. This form is to avoid double taxation. If the taxes in the foreign country are significantly lower that what you would pay in the US, you might have an additional tax liability in the US. However, you gain a lot of benefits from being able to file a joint return. I would guess that filing jointly is more beneficial.
To be sure, you could prepare one return as "dual status alien" filing married filing separately and one as married filing jointly.
Dual status returns are however not easy to do if you have no experience.

2) that status written on your W4 is not significant. The W4 is only relevant for your tax withholdings. As a NRA you are required to write SINGLE so that withholdings are correct. On your tax return you file with your actual status. That would be eiher married filing separately (if you file a dual status return) ir married filing jointly (if you file jointly).

Thanks again Sir,

One final question:

- Do I need to attach the global income of both of us, or do I need to attach the same for my spouse only as she is the one with NRA status and not me ?

Kindly confirm.. Thanks !

taxesforaliens · Nov 7, 2012, 02:39 PM

You would have to report worldwide income from both of you if you choose to be treated as resident aliens.

AtlantaTaxExpert · Nov 7, 2012, 02:58 PM

Taxforaliens has, as usual, given good advice.

If you need help filing come January 2013, email me at the address in my profile.

AtlantaTaxExpert · Nov 7, 2012, 03:03 PM

Also, you will need to get ITINs for your wife and child. That requires you get passport photocopies CERTIFIED as true copies by your home country consulate. Unless the consulate is close, you will need to do ghis via the mail. This can take some time, so call the consulate to find out the procedure you will need to follow.