I was in USA from Feb06-Jul05 on L2 visa.I need to file taxes .I did not apply for EAD and so I do not have SSN.Do I need to submit a statement with ITIN application that I am not eligible for SSN.Can I send my ITIN application along with tax returns?

Somewhere I read that the stamenent is required.

You may NOT have to pay taxes. You are right on the edge of the 183-day rule.

What is your home country?

I was opearting an online business selling books on ebay.com and my CPA in India told me that I had to pay US taxes since my income was effectively connected US source of income.My home country is India.

Please advice.

eBay sells to people world-wide, and you could have operated this business from India, so you could make the argument that the income is NOT effectively connected to the U.S.

However, your activity is a self-employment activity, so the time is 89 days (which you HAVE exceeded), not 183 days. So it IS likely that you need to at least file a tax return on the income earned while you were in the U.S.

However, you are paying income taxes to india on that money as well, you can claim a credit against the U.S. taxes for the India taxes paid. Combined that with your $3,300 personal exemption and it is possible that no taxes will be due.

You will need to file Form 1040NR with a Schedule C and Form 1116, not an easy form to file. I can help you file these return if you wish; just contact me at [email protected].