[mrandmrsCA]

Hi,
I'm confused about our filing status...

-2010 we were both Resident Aliens, and as were married. We filed jointly, took the married deduction, standard exemption, and claimed the Making Work Pay credit.

-2011.
A. Husband quit job and left the country in the summer to return to home country. Establishes close ties home - enrolls in college etc (with the exception of wife remaining in US).
B. Wife leaves US permanently on Dec 22nd, but was under work contract until Dec 31st (took vacation for the last week). No plans to return in 2012. No income earned overseas.

Can wife still be counted as resident on Dec 31st and thus we can elect to file jointly as resident for whole year and so be able to claim the MWP credit and standard deductions (as if one is resident and other is dual-status, it says you can elect to both be resident for full year - no overseas income to consider for either, so won't lose out with double taxation on that)? Were her ties closer in home country from Dec 23rd? She was officially still under work contract in US and work permit was still valid, but had given up apartment etc. Last pay check was Jan 1st 2012 (so will eventually file as non-resident for 2012). If we do file this way, can we e-file, or do we have to paper file and include a statement saying husband elects to be resident for last part of year, but both giving up residency as of Dec 31st?

Or, do we both file as Dual-Status, but then can't take standard deduction, or claim MWP credit. And neither have income to report on non-resident form (but both will have small credits owed on the resident portion of the year - where does this go on the NR form).

Thanks!

[mrandmrsCA]

I see MWP credit expired so we can't claim it for 2011, but we would still be better off with standard deduction than itemizing.