[dinesh_bs123]

Hi,

I paid the relocation expenses for my spouse and kids in March 2007 to relocate from India to California - air tickets. So can I claim this moving expenses in filing the returns for 07.
This is my first job in US after relocating to US from india. Pleas help.

[AtlantaTaxExpert]

Yes, you can, if you have taxable income for 2007.

You would file Form 1040 with a Form 3903 ot claim the moving expenses.

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,700 joint standard deduction plus two $3,400 personal exemption (for yourself and your wife) plus one $3,400 for your child PLUS the $1,000 Child Tax Credit.

The downside is that:
• you must WAIT to meet the Substantial Test before you can file, which means you must wait until 13 May 2008.
• you must declare ALL 2007 world-wide income. There are two offsets available, by either claiming a Foreign Tax Credit (Form 1116) or a Foreign Income Exclusion (Form 2555).

Even with the downside, this is probably the best way for you to file.

[MukatA]

Yes, you can deduct moving expenses on Form 3903 only if you are sure that you will be here for at least 39 weeks in the year after you came to the U.S.

Read: Your U.S. Tax Return: Moving Expenses