[arshadhaneef]

I came to United States on a L1 visa on 13 Jul 2008 and have been working since then till now. This means that I was in US only for 172 days in 2008.

I am married and my wife and son accompanied me on L2 visa. My wife is not working.

Do I have to file the tax as Non Resident Alien? Can I file the tax jointly in this case? If I have to file individually then do I not get any benefits for my wife & Son?

Do I have to report the salary I from from India where I was working from Jan - Jul 2008. I have already paid the tax for the period in India. The tax period in India is from Apr to Mar, and I have also already filed the return till Mar 2008.

Any help would be highly appreciated.

Thanks
Arshad

[MukatA]

Choice 1: If you did not complete SPT in 2008, you can file non-resident tax return.

Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for about 126 days in 2008 to file your tax return till you meet the Substantial Presence Test in 2009.

You will get standard deduction of $10,900 and exemptions for both of you and the kids.

You must both declare your worldwide income for 2008. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.
File form 1116 to get foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses for you and family. Use form 3903.
Read about L1 tax filing: Your U.S. Tax Return: The U.S. Visas

[arshadhaneef]

Thanks for the quick answer. I had a few more related questions.

If I use Choice 1 and file a non resident tax return, would I get the standard deduction? Would I get the 3500 deduction for each dependent including self? Can I get child care credit from the tax?

Or is this available only if I file with Choice - 2?

Do you know of any firm that specializes in these types of tax filing? Any contact / help would be greatly appreciated.

Thanks
Arshad

Choice 1: If you did not complete SPT in 2008, you can file non-resident tax return.

Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for about 126 days in 2008 to file your tax return till you meet the Substantial Presence Test in 2009.

You will get standard deduction of $10,900 and exemptions for both of you and the kids.

You must both declare your worldwide income for 2008. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.
File form 1116 to get foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses for you and family. Use form 3903.
Read about L1 tax filing: Your U.S. Tax Return: The U.S. Visas

[AtlantaTaxExpert]

If you file as a non-resident, you do NOT get to claim the standard deduction nor can you claim your wfe or son as dependents. Only Indians on a F-1 or J-1 visa can claim the standard deduction and dependents on their non-resident alien tax returns.

You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,900 joint standard deduction plus two $3,500 personal exemption (for yourself and your wife) plus one $3,500 for your child PLUS the $1,000 Child Tax Credit.

The downside is that you must declare ALL 2008 world-wide income, but you can at least partially offset any double taxation by claiming a Foreign Tax Credit (Form 1116).

Even with the downside, this is probably the best way for you to file.

I can help file your return; contact me at [email protected].

[santosh.sas]

1) Are there any down sides if a person selects first choice of year option but down the line while he apply for green card?
2) Is it not possible to first fill 1040 NR and once SPT passed amend as Married jointly so that he can get refund in slots

[AtlantaTaxExpert]

1) No downside.

2) Yes, you can do that, but filing such an amendment takes time, and there is NO guarantee that you will get a refund with the Form 1040NR.

If you need professional tax help with this, email me at [email protected].

[santosh.sas]

I think email posted is not correct can you post it one more time

[santosh.sas]

One more query if I don't owe any tax do I need to file for extension? Means I am planning to file after I complete in SPT and use First choice of year.

[AtlantaTaxExpert]

The email IS correct as [email protected]; I am no longer associated with VisaTaxes.com

An alternate email is [email protected].

File the extension Form 4868 even if you do not owe any taxes. It does not hurt and meets the letter of the law.