[vipin_gupt]

Hi -

I worked in US for 6 years on H1B until June 17, 2010 when I relocated to India. Do I have to file a dual status return for 2010? I have been filling resident returns for last few year and meet the substential presence test.

I file jointly with my wife (she is housewife) and claim child tax credit for 2 sons ( 4yrs and 2 yrs)

My company assigned tax consultant is suggesting that I file dual-status return but then I will not be able to get all the deductions/exemptions/child credit unless I go back to US for last 2 weeks of December.

Please let me know if there is anyway around this? I want to aviod visiting US and want to take as much deductions/exemptions/child credit as possible.

My gross US income for the first 6 months is around $60,000

Please advise.

Thanks,

[AtlantaTaxExpert]

You have a choice:

1) You can file a dual-status return, which means you declare ONLY the income earned while in the United States. The consultant is partially wrong, in that you CAN claim your wife and children as dependents on the return, but you will NOT get to claim the $1,000 Child Tax Credit nor will you be able to claim the standard deduction. Additionally, you will need to submit a Residency Termination Statement with your return.

OR

2) You can choose to be treated as a resident for ALL of 2010. This will allow you to:

- file jointly with your wife.
- claim the standard deduction.
- claim the $1,000 Child Tax Credit.

However, you must ALSO claim all income earned by yourself AND your wife in India in calendar year 2010. Additionally, you will need to submit a Residency Termination Statement with your return.


More than likely, you will need to prepare the return BOTH ways to determine which way is best tax-wise.

[vipin_gupt]

Thank you AtlantaTaxExpert . Your answer is very helpful.

[AtlantaTaxExpert]

Glad to help!