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    brickcll's Avatar
    brickcll Posts: 3, Reputation: 1
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    #1

    Feb 24, 2009, 02:13 PM
    L1 to H1 in same year; Resident or Non-Resident Alien?
    Hello,

    How are you doing?

    I have a tax related question and I will be highly obliged if you can provide me with some guidance.

    Background: I came to US on 27th Dec 2007 on L1 visa with my wife on L2 Visa status. In October 2008 I got my visa status changed to H1 and since then I am on H1 and my wife is on H4. During the entire 2008, I did not leave US and was working for the same employer.

    Question 1: Though I was not resident alien at the beginning of the year 2008, but I met substantial presence test for year 2008 after 183 days in US.
    For filing tax should I consider myself resident alien or with dual status? Will I have any bearing on my resident or non resident alien status because I changed my visa to H1?

    Question 2: I was partially on L1 and then on H1 during year 2008. Can I still claim my wife as a dependent for entire tax year.

    I shall be thankfull for your response.

    Kind Regards
    Kartik Sharma
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 25, 2009, 12:42 AM

    You can file resident tax return as Married Filing Jointly.

    You will get standard deduction of $10,900 and exemptions for both of you.

    You must both declare your worldwide income for 2008.

    You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return.
    Read: Your U.S. Tax Return: The U.S. Visas
    brickcll's Avatar
    brickcll Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Feb 25, 2009, 07:23 AM
    Quote Originally Posted by MukatA View Post
    You can file resident tax return as Married Filing Jointly.

    You will get standard deduction of $10,900 and exemptions for both of you.

    You must both declare your worldwide income for 2008.

    You will complete forms W7 (application for ITIN) for your spouse and attach with your tax return.
    Read: Your U.S. Tax Return: The U.S. Visas

    Thanks a lot MukatA.

    I wanted to make it sure because I went to HnR block and guy gave me another answer. Just one more thing. My wife is a student now. The money I paid in fee, can that be claimed towrads deduction as well?
    Let me know if you have an idea.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Feb 25, 2009, 11:12 AM

    On resident return you can claim tuition and fee adjustment deduction of up to $4000. Adjustment deduction is shown on Form 1040, line 34 or 1040A, line 19. For this you need to do Form 8917 (Tuition and Fees Deduction) based on Form 1098-T received from educational institution..
    brickcll's Avatar
    brickcll Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Feb 25, 2009, 12:49 PM
    Quote Originally Posted by MukatA View Post
    On resident return you can claim tuition and fee adjustment deduction of up to $4000. Adjustment deduction is shown on Form 1040, line 34 or 1040A, line 19. For this you need to do Form 8917 (Tuition and Fees Deduction) based on Form 1098-T received from educational institution..

    Thanks a lot mukatA. I really appreciate all the help.
    Best Regards
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