[back to NY]

I was granted an L1 visa on September 19th 2006 and started working in NY on October 28th 2006. MY tax return for 2006 was filed as a Non-Resident Alien using form 1040NR.

I continued working in NY until October 2nd 2007 at which point I relocated to the Bahamas, but still employed by my US employer.

The project I am working on has been delayed and as a result, I am relocating back to NY in July 2008.

I am using a CPA to do my tax return for 2007 but I am interested in understanding the following;

1. Will I file as a resident or non-resident alien for 2007?

2. With regards to my tax return for 2008, will I be considered a NRA, resident alien or dual status alien?

3. Will I be liable for any taxes on my earnings while working outside of the US (October 2007 to July 2008)?

Thanks

[AtlantaTaxExpert]

1 -3) If your L-1 did not expire, you can file as a resident alien under the concept of "Continuous Presence". The same applies for 2008 providing you remain in the U.S. Yes, you ARE liable for those taxes in the eyes of the IRS.

[back to NY]

Thanks.

With regards to my tax liability for my earnings outside the US from October 2007 to July 2008, will I able subject to any concessions or will I be taxed at the full rate?

[AtlantaTaxExpert]

If you paid taxes to another country on that income, you can claim the Foreign Tax Credit by filing Form 1116 with your Form 1040. The credit will probably NOT be dollar-for-dollar, but it is better than nothing.

[IntlTax]

I am not familiar with the "continuous presence" rule cited by ATE. I would think that you would file as a dual status alien for 2008.