[Tjina]

Hello

I am on H1B for past 4 years and am filing my taxes regularly as Resident alien.(cause satisying substantial presence test)

In Nov 2008 , am leaving US and going to India for good...

How do I file my taxes ?and what are my liabilities on leaving US...
What points do I need to keep in mind...

I am married and have a child too.


Thanks


Tjina

[MukatA]

For 2008 you may need to file Dual Status tax return-- resident in the beginning of the year and nonresident at the end of the year.

[Tjina]

But I am meeting substantial presence test so am I not Resident Alien in US?

Is dual status some typr of return or it means filing at 2 places?

Am confused?

[AtlantaTaxExpert]

In order to file as a resident alien, you must be resident in the U.S. EVERY day (save a small 10-day grace period). You are leaving over a month before the end of the year.

If you were returning to the U.S. in 2009, you could file as a resident alien under the continuous presence policy, but since that is not the case, a dual-status return is the required return for you.

Under dual-status, you can claim yourself and your wife and child as dependents, but you LOSE the standard deduction.

[Tjina]

Thanks... got better understanding now...

Any date restrictions for filing this return?
Which Form is it... is it 1040NR?
Where can I file this return? Here or in India?
Can I use online tax services like this to file my return or CPA help?

Thanks

Tjina

[AtlantaTaxExpert]

The dual-status return requires filing BOTH Form 1040NR and 1040.

It CANNOT be filed onl-line, but rather must be mailed, either from the U.S. or India, wherever you are located.

This return is NOT for amateurs! Get professional tax help from someone with experience in filing dual-status returns.

Finally, keep your U.S. bank account open, so the refunds (if any) can be direct deposited. Neither the IRS nor the states will direct deposit to s foreign bank.