[ashishamr]

I holding a H1B Visa from Cognizant and working for the client in US from 27 July 2008. My spouse and child dependents also joined in Dec 2008. I got my W2 form for 2008(for 5 months and 3 days in 2008).

Do I need to use 1040 or 1040NR to file my tax returns. Am I eligible for standard deduction? Can I have the option to file jointly? Can I take personal exemption for me and my wife and child dependent credits if 1040NR?

This is my first US trip. I Worked 153 days in 2008.

Please advise.

[AtlantaTaxExpert]

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.

You will need to submit Forms W-7 to apply for ITINs for your wife and child. A notarized photocopy of their passport needs to be stapled to the W-7.

The downside is that:

• you must WAIT to meet the Substantial Presence Test before you can file, which means you must wait until 21 May 2009.

• 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.