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ipodpune · Apr 14, 2008, 09:41 AM

Hello Experts - I'm new to this forum and to this country as well. Here is what I did:

1. Married and came to US for the first time on H1b visa on OCT 1 2007.
2. My wife is on H4 visa.
3. Took vacation and went to India between March 7 to 31st 2008.

Came back from vacation and due to the deadline, went to H&R block. The tax advisor told me that I get dual status and did both 1040NR and 1040. But now I'm confused. Did he do it correctly?

Please help. Thanks in advance!

MukatA · Apr 14, 2008, 10:07 AM

Choice 1: File nonresident tax return. You will only get exemption of $3,400. You can deduct moving expenses on form 3903 and itemized deductions (included state taxes paid). Normally you should choose this only when all your deductions are equal to or more than your total income.

Choice 2: You can file resident tax return as Married Filing Jointly. You will have to wait for about 5 to 6 months in 2008 to file your tax return till you meet the Substantial Presence Test (of 183 days) in 2008.
You will get standard deduction of $10,700 and exemptions for both of you.

You must both declare your worldwide income for 2007. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses. Use form 3903.
Read: Your U.S. Tax Return: Moving Expenses

The Dual Status is not a choice in any case. Dual status means nonresident in the beginning of the year and resident at the end of the year. Are you sure you went to H&R block?

ipodpune · Apr 14, 2008, 10:29 AM

Thanks a lot for the response. I went to H&R yesterday and they did four things

1. Form w7 for my spouse (for ITIN)
2. Form 1040NR
3. Form 1040
4. State return

If you are sure, I could go and ask them how did they apply both 1040 and NR. What's your advise on this?

harishhere · Aug 27, 2008, 09:43 AM

Continuing on this front. I came to US on Aug 27,2007 and filed 1040NR for 2007 returns. I'm continuously staying in US till date and hence complete my SPT. Now, I can file amendment to my 2007 returns for changing status to resident alien under First Year Choice. But my tax consultant is saying I can't claim standard deduction! I'm married and hence expect that while filing amendment I should be able to claim standard deduction $10,000 and exemption of 6,800$. Am I correct ?

What is the process of filing amendment in such case (first year choice) ?

AtlantaTaxExpert · Aug 27, 2008, 12:16 PM

You ARE correct; you CAN amend the return to file jointly with your wife (even if your wife is still in your home country).

You would need to file Form 1040X and add your wife to the return. If she has no SSN or ITIN, you would have to apply for one using Form W-7.

If you need professional help to do this, contact me at the email address below.