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Using 2555 was correct?
Hi-
I'm (South) Korean citezen and I started to work from July 2007 with L1 visa and my wife and daughter (2 years) came into the States at August 2007 with L2 visa. Since I visited US for 1.5 months in May 2007 with B1 visa, I thought that I became a resident alien at the end of 2007. My wife has a SSN and baby doesn't have. To file as resident alien, I selected MFJ and reported the income from Korea for January to June. To exclude the foreign income (Jan - May), I also filed 2555 because I thought that I satified physical presence test for 330 days (from May 2006 to May 2007). And I received tax return as expected (foreign income was excluded). My concern is... Was I correct to file 2555? Somebody said that I couldn't use 2555 and 'Foreign tax credit' was the only choice. One more question: ITIN for my daughter was rejected (So I didn't get the return related to her). The reason was: I selected 'Dependent of U.S citizen/resident alien' as 'Reason of submitting'. But the letter from IRS says that 'The information you provided on your Form W-7 indicates that you do not meet the physical substantial presence test, or qualify to be claimed as an exemption for tex purpose'. Since I satisfied (my daughter not) the condition of physical presence test, I selected that reason. 'Depentent/spouse of a nonresident alien holding a U.S. visa' is the correct one? Thank you for reading this long question. |
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1. You can file 2007 tax return as residents filing jointly if your meet substantial presence test in 2007 or even in 2008. Claim exemption of child also.
2. You will both include worldwide income. You can use Form 2555 for earned income. 3. You daughter should get ITIN. You should file W7 with your resident tax return. It appears that you filed W7 without filing your tax return. Reason is " Dependent of U.S. citizen/resident alien" is correct. |
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You should email AtlantaTaxExpert at [email protected]. He is most experienced around here.
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If you were single, you would have to file as a dual-status alien because, even though you have met the Substantial Presence Test, you failed to spend EVERY day of 2007 as a resident alien.
However, because you are married, you and your wife could file joinly and CHOOSE to be treated as resident aliens for all of 2007. |
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