[ash1612]

I moved to the US on 14th Nov 2006 to work under a L1 visa. My salaries are paid by the local offices of my parent company in dollars. I got my W2 form from my employer and need to file my tax. I have my family with me since I came - wife and two kids (3 yrs and 1 yr+), but none of them have an SSN or a ITIN. They are on L2 visa. Wife does not work.

In the W2 form, my marital status has been taken as Single. I understand that I can claim some refund since I support from my family. I don't have any other sources of income. I am in the state of Kentucky.

My queries:
1. What forms do I need to fill to file my tax?
2. Is it necessary to get a SSN/ITIN for my wife and kids to claim some relief or exemption since they are completely dependent on me?
3. Is it advisable to file jointly or separately in my situation?
4. Can I file through efile on IRS.gov - I am asking this because I signed up there but I don't see any place where it helps file under a category like resident alien which would apply to me.
5. What is the last date for me to file? If I need to file with SSN for my dependents, and it is going to take 4-5 weeks, can I take some extension and how?


Thanks!

[AtlantaTaxExpert]

You have two options:

You can file as a non-resident alien, claiming ONLY your U.S.-based income. If the 2006 U.S.-based income is less than $3,300, then your personal exemption will completely offset your income and you will get ALL of your withheld income taxes back. You can also file this form IMMEDIATELY, allowing you to get a refund sometime in April.

OR

You can file jointly with your wife, choosing to be treated as resident aliens for ALL of 2006. This means you will have to claim ALL of your 2006 world-wide income. However, you will get $13,200 in personal exemptions PLUS a $10,300 standard deduction PLUS $2,000 in Child Tax Credits, which will probably completely offset your home country income. You must wait until mid-June 2007 before you can file your federal return. You will have to file Form W-7 for your wife and children (along with notarized photocopies of their passports) to apply for ITINs for each of them, then wait for the IRS to send you the ITINs before you can file your Kentucky state tax return.

In either case, the tax returns CANNOT be done on-line; they MUST be mailed.

It is likely the joint filing option will produce the greatest tax benefits. Exactly by how much, I cannot say.

[ash1612]

Thanks. I guess I will go with the option to file for my US based income because I would be paying taxes for my income in home country anyway.

Now, my US based income is more than $10,000 for this period. I will go with joint filing as you advise. What forms do I need to fill. Also, since my wife/kids don't have SSN/ITN - can I still file jointly? { from your answer I understand that the info for forms and process are related to the second option}

Also, do I need to file for the state taxes separately?

Thanks and appreciate your help.

[AtlantaTaxExpert]

You need to file either Form 1040 or 1040A. Put your wife's name under yours (but leave the SSN area blank). Put your child's name is section 6 (again. Leaving the SSN area blank).

Complete and sign the W-7 and staple the notarized photocopy to the return. Mail the return to the ITIN processing center in Austin, Texas (address in the W-7 isntructions).

The IRS will issue the ITINs, insert them in the blkank SSN areas and process the return. Theyw ill send you the ITINs via separate letter.

Once you get the ITINS, then (and only then) can you file your state tax return.