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    sanvc74's Avatar
    sanvc74 Posts: 3, Reputation: 1
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    #1

    Feb 23, 2008, 05:24 PM
    Income tax returns Resident Alien or Non Resident alien
    Hi,
    I came to USA for the first time on July 5, 2007 and working here in NJ. I am currently on H1B (Sept 2006 - Sept 2009). I am married and my wife came here in Sepetember 2007 on H4. My question is whether I need to file income tax returns as Resident alien or Non-resident alien for 2007? In 2007, I am physically present here for 180 days.
    Thanks,
    San
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 10, 2008, 01:02 PM
    You can file as a non-resident alien, claiming ONLY yourself and the itemized deductions. This return will allow you to pay taxes ONLY on the income earned within the U.S.

    OR

    You can file jointly with your wife and you BOTH choose to be treated as resident aliens. This will allow you to claim your own and your wife's personal exemption PLUS the $10,700 joint standard deduction. However you must claim ALL of your 2007 world-wide income. This can be offset by either claiming the Foreign Tax Credit (Form 1116) or the Foreign Income Exclusion (Form 2555). You must alsoo WAIT until May 2008 to file.

    OR

    You can file dual-status, which is the same as option one except that you get to claim your wife as a dependent, but you only pay taxes on U.S.-soruced income. You must wait until May 08 to file, though.

    More than likely, the second option is best tax-wise.
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