[nhshukla]

Hi,

I am at Santa Clara California since 1st Sep 2006 on L1 Visa. My wife suppose to be here on L2 by October, but due to some reason she couldn't make it. So, she will be here by January 18th 2007. Now, with my company I was on payroll with married status. Yesterday I got W2 form and this is my first return filing in US. Now, I want to know that what should I do. As, my wife and daughter were not present in US in the year 2006, still I am eligible for filing returns with status Married filed Jointly? Can I claim my 2 year old daughter as a dependent?

Please guide me for the same.


Thanks,

[AtlantaTaxExpert]

In giving these scenarios, I am assuming you will be in the U.S. for a period in excess of 183 days and that your income while in the U.S. is coming from a U.S. source.

You have several options. Regardless of which one you take, you CANNOT claim your daughter as a dependent on the return, because she was not with you in the U.S. at all in 2006.

You can file jointly with your wife as resident aliens, but in doing so, ALL of your world-wide income for the entire year is subject to U.S. tax. Credits are available for the taxes you paid to your home country, but claiming them can get complicated. Filing jointly allows you to claim your wife's and your own personal exemption of $3,300 each (fior $6,600) plus a double standard deduction of $10,300.

You can file as a dual-status alien. If you do so, you will have to wait until you meet the Substantial Presence Test, which requires 183 days in country. You can only count one in three days for 2006, so you would have to wait until sometime in June before you could file. Unfortunately, since your wife was not with you anytime in 2006, you cannot claim her as a dependent. As a dual-status alien, you must report all of your income, but you will pay taxes only on the income you earned while in the U.S. The dual-status return is rather complex, and, in your circumstance, offers no advantages over the third option, which is...

You can file as a non-resident alien, filing Form 1040NR or 1040NR-EZ. You will not be able to claim the standard deduction, nor will you be able to claim either your wife or daughter as a dependent, but you will be able to claim any treaty exemption specified in the tax treaty that the U.S. may have with your home country.

You should NOT try to file this return on your own. You need to get professional tax help, preferably with someone with experience doing taxes for foreign nationals. If you want my help, you can contact me at [email protected].