[lmolnar]

Am I a resident or non-resident alien for 2011 tax return?
I would like to know what category I would fall under for tax purposes.
I had a L1-B visa and worked and lived in the US for 4 years with my wife and kid. I moved to Europe on 02/24/2011 and l am living there now.
How would I need to file my 2011 returns - as a dual status alien, resident or as a non-resident?
Which documents should I file?
Any advice is much appreiated

[AtlantaTaxExpert]

You have a choice:

1) You can file an EXPATRIATE dual-status return which will allow you to report ONLY the income earned while in the U.S. up until 24 February 2011. On that dual-status return, you can claim your wife and child as DEPENDENTS, and you will file Married Filing Separately. You will also NOT be able to claim either the $1,000 Child Tax Credit nor the standard deduction, and you WILL itemize your deductions. Finally, this return MUST be mailed.

Note that the dual-status return is NOT for amateurs; get professional tax help from someone with experience filing dual-status returns.

OR

2) You can file jointly with your wife and claim your child. You will have to claim ALL world-wide income earned in 2011, and file Form 1116 to claim the Foreign Tax Credit for taxes paid to the country to where you moved. This return allows you to claim the JOINT standard deduction AND the $1,000 Child Tax Credit, AND it can be efiled.

You probably will need to model the return BOTH ways to determine which is the best course of action tax-wise.

In EITHER case, you need to mail to the IRS a Residency Termination Statement that is signed by BOTH you and your wife via normal mail no later than 30 June 2012.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.