[Venkatesh76]

Hi,

Need your help in finding the right form to use.

I am working for an Indian company and was deputed to our client site at US for work assignment. Me on H1 visa and my wife on H4 visa were there at US from Nov 2006 till mid Feb 2007. We both returned back to work from our India office and during the rest of 2007 I was in India only. I have my SSN, but my wife is not having SSN / ITIN.

I received my salary in USD during my stay in US and a minimum amount in INR. When I returned to India, there is no USD pay and I have only INR pay.

By checking the substantial presence test, I haven't put in the required number of days stay in US and hence I am a non-resident alien.

My questions are:
(1) Which form should I use - 1040NR / 1040EZ / 1040NREZ?
(2) Which form will help me claim my wife as dependent?
(3) Can I file W7 to get an ITIN for my wife from India?

Please help with the answers.

THanks in advance
Venkatesh

[AtlantaTaxExpert]

Venkatesh:

If you were paid by your Indian company and NOT by a U.S. company or U.S. subsidiary of your Indian company, then, as specified in the U.S.-India Tax Treaty, your income earned while in the U.S. is EXEMPT from U.S. taxation due to the short duration of your visit.

[Venkatesh76]

Venkatesh:

If you were paid by your Indian company and NOT by a U.S. company or U.S. subsidiary of your Indian company, then, as specified in the U.S.-India Tax Treaty, your income earned while in the U.S. is EXEMPT from U.S. taxation due to the short duration of your visit.

Hi AtlantaTaxExpert,

Thanks for responding to the query.
Yes parent company is registered in India and also my parent company paid me salary in USD during my stay in USA.
Please help me with the answers for below:
(1) Which form should I use for tax filing?
(2) How do I claim the benefit of the mentioned treaty?
(3) Do I need to apply for an ITIN for my spouse?

Kindly let me know at your earliest.

Thanks and Regards.
Venkatesh

[MukatA]

1. If you received W2, it means that the payment is from the U.S. company.There is no treaty benefit available. For U.S. India tax treaty read: India U.S. Tax Treaty

2. For 2006 and 2007 you will file only nonresident tax return. In 2006 you will get $3300 of personal exemption and in 2007 you will get $3400. You can claim itemized deductions. You will not get exemption of your spouse.

3. File 1040NR or 1040NR-EZ and you don't need to file W7.

[AtlantaTaxExpert]

Agreed; if you received a W-2, then you got paid by a U.S. company and the advice offered by MukatA is valid.