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bluemetal37 · Mar 21, 2015, 02:23 PM

Hi,

I came to US on Sept 2014 with wife and kid. Me and my wife have got SSNs within 2 months.. I filed my tax return with a tax software website for Federal and State on Feb 2015. I got my state return within a week, but my federal status is appearing as 'Your Tax return is still being Processed' even after 4 weeks and I got the same information as IRS notice..

On self analysis of my tax return, I noticed that my returns are filed as 1040EZ instead of 1040NR (since I have not completed 183 days in 2014) for both Federal and State Returns.

Kindly advice on my below queries..
1. Do I need to wait for the response from IRS on the incorrect 1040EZ return as the IRS notice gives the date as May 2015?

2. Shall I submit the amended 1040X along with new 1040NR return for the Federal and State returns before April 15th?

3. Since my wife and kid is physically with me, Can I submit the MFJ status on the 1040NR return?

4. As I already received my State return, do I need to file updated Non Resident - State return with any return amount now itself before April 15th or can it wait?

Would appreciate for a faster response as time is running out..
Thanks for anyone helping me on this..

AtlantaTaxExpert · Mar 21, 2015, 10:21 PM

1) Wait for the IRS response.

2 & 3) Amend the return to add all world-wide income and Form 1116 to claim the Foreign Tax Credit for home country taxes paid on the world-wide income.

4) You should have file the state return as a part-year return. If that is how you filed, then no amendment should be necessary.

If you need professional help with this issue, contact me via the email address in my profile.

bluemetal37 · Mar 23, 2015, 08:37 AM

Hi,

1. For CA State Return, I filled under 540. I am not sure where to check its part year or full year return. Can you please let me know how to confirm on the same?
I cross verified the 540 form which I submitted to the CA Tax Board, but I don't see the option of full year or part year...
Also doe it mean that I need to file 540-NR for California instead of 540?

2. IRS has conveyed to provide update on May 7th 2015, do I need to wait till that time? Can not I amend my return now itself?

3. Being from India, we have the Tax years from April to Mar unlike Jan-Dec of US.
For my home country income do I need to consider income from 2 different Tax years i.e Jan-Mar 2014 (+) April-Sep 2014 Income

4. For the Indian income, I have already paid taxes at my home country.. Will these be considered additional income for US and be levied additional taxes in spite of paying the tax in my home country?

Thanks for your prior response...

AtlantaTaxExpert · Mar 23, 2015, 09:03 AM

1) Form 540 is used for part-year and full-year residents. You also need to use Schedule CA(NR). Form 540NR is for non-residents.

2) You do NOT have to wait until the IRS gets back to you, but I would if I were you, because, right now, you have incomplete information.

3) Yes.

4) No. If you submit Form 1116, the taxes paid in India will be considered a CREDIT against your U.S. tax liabilities.