[srivishnu]

Hi,
I came to US on L1 Visa for first time in July 2007 and stayed for 3 months in US.
Again I went back to India and came to US in Nov on Long term project.

My total stay in US for year 2007 is 150 days. My wife joined me at the end of Novemeber month. She came on L2 visa and does not have SSN.

Now, Do I need to file, married filing jointly? Or do we need to file taxes separately?

In case of joint filing, do I need to show my salary in my home country (INDIA)? I already paid taxes when I receive salary in INDIA.

Whether we are eligible to receive tax rebate check by IRS when we file taxes?

Please let me know.

Thanks
Sridhar Kumar K

[MukatA]

Choice 1: If you have limited US income file nonresident return. You can claim moving expenses for yourself and your wife.

Choice 2: You can file resident return as MFJ. You must wait to file the return till you complete SPT test in 2008. Attach W7 of your wife with your tax return.
On joint return, you will report your worldwide income for 2007. You will get credit for taxes paid in the foreign country or may be able to exclude the income.

On your U.S. resident return, you must report your worldwide income. It the total income meets the filing requirement, you must file your tax return.Filing in the U.S. does not necessarily mean that you will be paying taxes in US also. You will get credit for taxes paid in the foreign country. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

[srivishnu]

Hi Mukat,
Thanks for your answers. It helps me to understand better.
One thing I am not clear what does it mean by SPT test in 2008?

One more clarification on worldwide income, I have some capital gains back at INDIA.
But In INDIA, we don't pay taxes for long term capital gains. Are we going to pay any tax for them on US?

One last question is What is filing requirement amount?

Thanks and Regards
Sridhar Kumar K

[MukatA]

Substantial Presence test in 2008 means, you meet this test

1/6 (days in 2006) plus 1/3 (days in 2007) plus days in 2008 = 183.
Read page 4 of IRS Publication 519: Tax for Aliens

Filing requirement: Nonresident $3,400, resident signal $8,750, resident joint return $17,500...

[IntlTax]

If you had substantial capital gains in India, you are probably better off filing as a nonresident alien. If you file for 2007 as a resident alien, you will likely pay U.S. tax on the Indian gains.

[srivishnu]

Thanks for your clarifications.

I came first time to US in 2007 and stayed 150 days. And I will stay here for sure till July end in 2008. So I think I can file as MFJ.

Reg capital gains, I have approx 2000$ for the whole year. But 70% of it is long term capital gains according to Indian Tax law, which will not call for tax.
Do I need to pay tax here for that?

Thanks
Sridhar

[IntlTax]

Yes, you will pay U.S. tax on the Indian capital gains if you choose to file MFJ.