[venubv]

Hi,

Can you any one clarify my query on tax return?

1. I was in US from Dec 16,2006 to 21 Jun 2007 with H1 VISA. For the December month and Jan month, I got salary on Feb 1st. So I never filed returns for year 2006.

2. My wife with H4 joined me on 05 Mar 2007 and stayed up to 21 Jun 2007.

3. Currently I am in India and trying to file tax returns

The followiing are my queries.

1. Do I need to apply ITIN for my wife or not? Can I file return with applying ITIN for my wife? What are benefits I get with ITIN for my wife?

2. Filing Status would Non Resident Married Jointly, Is that correct?

3. Do I need to claim my wife as dependent in my tax returns? Will I get any benefit with this?

Regards
Venu

[AtlantaTaxExpert]

1-3) Yes, an ITIN is needed for your wife. You can file jointly with your wife and you both CHOSE to be treated as resident aliens. She is your co-filer, NOT your dependent. 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 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.