Status on 12/31/07

[TAX]

Client was on a L1 visa for first 6 month and on H1 visa on 12/31/07

I think what matters is the status on 12/31/2007.

Can some one confirm this, please?

Thanks!

[gkaiseril]

Pub 519

A non-resident alien can have a very complex tax return(s) situation. The status is determined by the type of days in the U.S. not just the last day of the year. You should start with a copy of IRS Pub 519, http://www.irs.gov/pub/irs-pdf/p519.pdf , and determine the status of your client. Since the L and H vaisa are not among the list of exclusionairy day(s) visas, all the days your client was present in the U.S. will count for the number of days needed to meet the "Substantial Presence" test and qualify for using the 1040 form and not having to file a 1040NR form. The minimum number of days present for 2007 is the sum of 100% of the 2007 days present in the U.S., 1/2 of the 2006 days present in the U.S., and 1/6 of the 2005 days present in the U.S..

[TAX]

A non-resident alien can have a very complex tax return(s) situation. The status is determined by the type of days in the U.S. not just the last day of the year. You should start with a copy of IRS Pub 519, http://www.irs.gov/pub/irs-pdf/p519.pdf , and determine the status of your client. Since the L and H vaisa are not among the list of exclusionairy day(s) visas, all the days your client was present in the U.S. will count for the number of days needed to meet the "Substantial Presence" test and qualify for using the 1040 form and not having to file a 1040NR form. The minimum number of days present for 2007 is the sum of 100% of the 2007 days present in the U.S., 1/2 of the 2006 days present in the U.S., and 1/6 of the 2005 days present in the U.S..

The client has been in USA for the entire year of 2007. More facts: Husband is on H1. The situation I described was for wife. They are filing joint.
Also she was on J1 visa (not L1 as I indicated) for 6 month and then H1 after that

I did file their 2006 return.

[gkaiseril]

Presence Test or Election

You have to count days and not months for the significant presence test. If the wife does not meet the significance presence test, then you and your client can consider the election by the "Non Resident Spouse Treated as a Resident" IRS Pub 519 page 10, http://www.irs.gov/pub/irs-pdf/p519.pdf#page10 .