[pspareek]

Hi,

Visa status -- L1B

I am an Indian, came to Washington DC, US for work in June 2009 and stayed till February 2010. Considering this, I believe I passed Substantial Presence Test for 2009 (207 days in 2009). However, I believe I will be treated as a Non-resident Alien for 2010 for tax purposes. I lived in Virginia during my stay in US and paid State taxes for Virginia along with Federal taxes. I am single.

With this background, can experts please let me know responses to the following queries:

Q1. What will be my filing status for both 2009 and 2010? I believe I am Resident Alien in 2009 (due to passing SPT with 207 days of presence in 2009) and Non-resident Alien in 2010

Q2. Which forms I should use for 2009 and 2010 for filing Federal taxes returns?

Q3. Which forms I should use for 2009 and 2010 for filing State taxes returns? I believe I can use Form 763

Q4. If I will be treated as Resident Alien for 2009, can I utilize Form 2555-EZ to exclude income earned in India during Jan - May 2009?

Thanks in advance for the help.

Regards,
Praveen

[MukatA]

1. You are dual status in 2009 and nonresident in 2010.
2. 2009, you main return will be Form 1040 and for non-resident part it will be 1040NR-EZ. For 2010, you will file Form 1040NR.
4. On dual return you do not report income earned from non US sources during nonresident period.
On both the returns, you can deduct travel expenses -- transportation, lodging and meals while in US. Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 9 of Schedule A (Form 1040NR). Your U.S. Tax Return: Itemized Deductions

[pspareek]

Thank you very much for the response. Please also let me know which forms should I submit for Virginia State tax return filing for both 2009 and 2010 considering my status? I believe I should use 760PY for 2009 and 763 for 2010 but would request if my understanding is accurate.

Thank you once again.