[ANambiar]

Hi, I was going through some of the questions that were answered using the same topic, but was not sure if I got the answer which would help me out, so here goes..

I'm an Indian, single, working in India, who landed in the U.S. for the first time on July 8th 2006, on an L1 Visa, which was issued on May 1st 2006. I've been here in the U.S. for the entire year, and my company had suggested me to re-file the W-4 Form as a Non-Resident Alien (As I would not satisfy the Substantial-test condition of > 183 days) for 2006.

Could you please let me know if I happen to fall as a Non-Resident alien, or as a Resident Alien, and if so, then what are the forms that I would need to file for tax returns.

Also my bank has sent me a W-9 form for me to fill, but if I am a non-resident alien for the year 2006, I would have to file a W-8 form instead. Wanted to confirm on this as well.

[AtlantaTaxExpert]

Your company is correct. You are still a non-resident alien as you did NOT satisfy the Substantial Presence Test on 31 Dec 06.

No need to file a W-4; that is only a guide for your company to withhold income taxes.

As a NRA, you should file Form 1040NR or 1040NR-EZ.

W-8 is the correct form for the bank.

[ANambiar]

Thank You for a very Quick reply!

Just to confirm that because of the same I would be eligible for the entire Federal Tax refund for the year 2006.

Also I would like to know if it's a good idea to continue having my Federal Allowance number provided as 1 for the year 2007. Thanks once again!

[AtlantaTaxExpert]

Claiming 1 on your W-4 is fine.

As a non-resident alien, you STILL have to pay income tax on U.S.-sourced income, so, no, you will NOT get all of your withheld taxes back as a refund.