[shashankt]

Hello.

I have come to US on a H1B status on 20th May 2007. My tax were duely deducted from the paycheck by my company and paid till date. My Spouse and kid have joined me on sept 10 2007. They have joined me on H4 visa.

My company had shown my marital status as single till 183 days of my stay and recently have changed it to married with a child in the W4 form.

The point of W4 changed from 1 to 5 and I have been getting benefits of tax deduction from last 2 pay checks.

I will be filling my return for the first time and need advice . Kindly let me know what all are the procedure to file a tax in this country as I am new and filling it for first time.

Can I file the tax myself ?
Is there any way I can file returns online ?
What is Tax identification number (TIN) ?
Will the dependents get a TIN ?
Can anyone suggest any consultancy to file returns

Thank & regards

Shashank

[Visa Taxes Expert]

Hello Sir

Your Tax situation is no different than an American Citizen, as you are considered a Resident, based on the Substantial Presence Test.

File Form 1040 along with Form W-7 (Tax ID for your Wife on H4) and do a married filed jointly.

Hope this helps!

[AtlantaTaxExpert]

VTE:

I strongly suggest you read IRS Pub 519 thoroughly before post advice on this forum again.

Shashank CAN file jointly with his wife, but they must submit a signed statement with their 2007 tax return that they qualify for First Year Choice and that they choose to be treated as resident aliens for ALL of 2007.

The downside to that option, however, is that he must claim ALL of his world-wide income, to include what he earned in his home country from 1 January until his arrival here in the U.S. He should be able to claim the Foreign Tax Credit for income taxes he paid to his home country (presumably India).

The upside to that option is that he can claim a double standard deduction of $10,700 plus personal exemptions for himself, his wife and his child, plus claim a $1,000 Child Tax Credit.

However, it is POSSIBLE that filing a dual-status return is a better option than filing jointly. It would depend on how much he made in his home country, and if his wife worked in their home country (her home country income must be included on the tax return as well).

You failed to answer his question about filing online, which CANNOT be done due to the requirement to file the Forms W-7.

You identified the form to apply for a Individual Tax Identification Number (ITIN), but you failed to address the fact that he must complete a separate W-7 for his CHILD.

You failed to identify the identification form that should be attached to the W-7, which is a notarized photocopy of his wife's and child's passport.

Shashank:

As noted above, your return may be as simple as filing a Form 1040A, but there could be other issues.

Further, I would need to know about how you got reimbursed for your moving expenses (which includes the airline tickets for your wife and child). If the reimbursement was tax-free, or your employer paid for everything, then you need not claim the moving expenses on your tax return.

However, if you got paid a lump-sum signing bonus (a common practive with H-1 visa holders), that bonus is TAXABLE income, in which case you want to file Form 3903 to claim the moving expenses from your home country (presumably India) to the U.S.

I would also need to model your return to see if filing dual-status makes more sense for you. Probably not, but I would not know for sure until I got all of your salary information.

If you are interested in using my professional services, email me at [email protected].

[MukatA]

Yes, Shashank can choose to file joint return as resident. They will get $10,700 standard deduction, three exemptions of $3,400 each (includes child) and child tax credit of $1,000.

On this joint return, they must report world wide income from Jan 1, 2007 to dec 31, 2007. If they had any foreign income and taxes were paid in the foreign country, they will need to file Form 1116 to get foreign tax credit or form 2555 to exclude the earned income up to $85,700.
And AtlantaTaxExpert has experience of doing such returns.

[AtlantaTaxExpert]

MukatA:

Noted, and thanks for the endorsement!