[ashu_t]

Hi,
It might be an old question but would really appreciate if some one can answer or provide a pointer to the answer (if already answered).
I came to US in first week of September 2007 with my wife. I have L1 visa and my wife has L2.
We both have the SSN.I have spent only 119 days in US from September till 31 December 2007 so I do not meet the condition of 183 days but I have read some where that if you are married then you can file as resident alien even if you spent less that 183 days. Is it correct? For filing the tax for 2007 what would be my status and which one is better in terms of refund resident alien or non resident alien?
Another question I have is that I live in NJ but work in NYC and my employer has deducted tax for NY state. I have not paid any tax to NJ so do I need to pay any kind of tax to NJ while filing the return or because I have alrady paid taxes in NY state I do not need to pay any thing to NJ.


Thanks in advance for your help.

[AtlantaTaxExpert]

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).

The downside is that:

• you must WAIT to meet the Substantial Test before you can file, which means you must wait until mid- 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.

NJ will give you a credit for the NY state taxes paid, so it is likely that you will have NO NJ taxes due (though you STILL have to file a NJ tax return).