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ssmL · Mar 7, 2008, 12:33 AM

Hi,
I could get answers too much of my qs after searching. Howewer a few qs left out made me make this post.

I arrived first time to USA from india on h1b along with my wife/baby (both h4) on aug24 2007. We will be here in MN for around 1 more year -say. I have my foreign tax paid certificate on my india income for my 4 months in USA. I have my 4 month rent paid certificate. I have my bank interst certificate in usa.

My question is - which is best? To wait and file as resident alien and get benefits by doing so? Or do amendment later (if posible). Which is convenient and beter option.

Which forms to use,
At what time to file,
At what time to notify IRS,
When can I file for ITIN
Can I do itemised
... are few other related questions which I am not clear of.

If I chose to file now and amend later, which form to use now?

Thanks in advance!
This is a great forum.

AtlantaTaxExpert · Apr 18, 2008, 12:57 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) plus one $3,400 for your child PLUS the $1,000 Child Tax Credit.

The downside is that:

• you must WAIT to meet the Substantial Test before you can file, which means you must wait until 13 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.