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    cherit's Avatar
    cherit Posts: 1, Reputation: 1
    New Member

    Mar 7, 2008, 03:47 PM
    Confused over resident/non resident/dual status

    I'm in US on H1B visa from July 22,2007 , along with my wife on H4.

    I fail the substantial presence test by about 20 days. So should I be filing as Non-resident/resident or dual status ?

    Talked to one consultant who asked me to file as Non-resident, while another told that it isn't required as I'm married !

    If I'm filing as non-resident, can I claim any excemption for my wife. As most documents mention that I should assume the status of 'single' when using NR form.

    Can any of you clarify on which form I can use and which status I should use ?

    Thanks a lot,

    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert

    Apr 25, 2008, 01:27 PM
    You can file jointly with your wife and you both CHOSE to be treated as resident aliens. This will allow you to claim the $10,700 joint standard deduction plus two $3,400 personal exemption (for yourself and your wife).

    The downside is that:

    you must WAIT to meet the Substantial Test before you can file, which means you must wait until mid-May 2008.
    you must declare ALL 2007 world-wide income.

    There are two offsets available, by either claiming a Foreign Tax Credit (Form 1116) or a Foreign Income Exclusion (Form 2555).
    Even with the downside, this is probably the best way for you to file.

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