[tarun_pant]

Hi,

I am from India and in US from 26 Oct 2006 to 31 Dec 2006 on L1 Visa. I am going to stay in US for the year 2007. My question - I can fill 1040NR can claim the tax right now, or can I defer my filling with 4868 for 6 months and claim after 183 days in 2007 as resident with stadard deduction, exemptions for wife and kids, child tax credit etc. qfor the tax year 2006.

Thanks

[AtlantaTaxExpert]

That is correct. By waiting, you can file jointly with your wife, with BOTH of you choosing to file as resident aliens. You will be able to claim both the double standard deduction of $10,300, your children's tax exemption of $3,300 and the Child Tax Credit.

However, by making this choice, you make ALL of your world-wide income for 2006 subject to U.S. taxes. There IS a foreign tax credit, but it is NOT dollar-for-dollar on earned income. However, given all that you get for filing as a resident alien, it may be worth it to claim your world-wide income.

You would need to file in late June 2007.

If you need my professional tax help, contact me at [email protected].