[jfmauger]

Hello,

I am french and I moved in USA (Boston) in November 2011. I work for a US company, I have a H1-B visa and my wife and my 2 kids are under H4 visa (no SSN). I would like to file my tax return but don't really know how to do!
From what I understood, I can file as a non-resident alien because I do not meet the substantial presence test but I could file as a resident alien too if I choose it (1st year choice).
Filing as a non resident alien seems to be easier because I have just to declare my US incomes, if I choose to file as a resident alien, I will have to declare my worldwide incomes (I worked in France up to september) and my wife too, but, it seems that we could get deductions.
What is the best way to do?
If I file as a non resident alien, should I file only 1 tax return for me and my family (with W7 to get ITIN) or should I file 1 for me and one for my wife (no income)? And what about my kids (18 months and 4 years)?
What are the risks if I make a mistake in my tax return?
The other problem is that my wife and my kids are currently in France and if we want to file the W7 form, I have to notarized the copy of their passports but they come back at the beginning of April, it will not be possible to get ITIN before April 17th, will I have to pay a penalty for that?
I thank in advance the person who will answer to all my questions, this is really complex for an alien and I don't want to have any problem with the IRS!
Best regards,

Jeff

[AtlantaTaxExpert]

Jeff:

I would have to model the returns BOTH ways to determine which is best. Given you have TWO children, I suspect that filing jointly is best (because of the $1,000 in Child Tax Credits you would get), but your income level in France will be the deciding factor.

You can also file a dual-status return, which allows you to claim the wife and children and pay taxes ONLY on the U.S. income.

Filing jointly or dual-status requires you WAIT until sometime in late June to file in order to meet the Substnatial Presence Test, so waiting for your wife and children is a moot point. You can file Form 4868 and request a filing extension to 15 October 2012, so the April filing deadline is NOT an issue.

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