Hi Taxguru, congratulation on your website and forum.

I am an Italian citizen who has spent more than 183 days in the U.S. during the 2006 calendar year. I believe I am therefore considered a resident alien for tax purposes. I always entered the U.S. with a Visa Waiver for business/vacation purposes until October when I entered the U.S. with a E2 Visa as the spouse of an italian citizen living and working in the U.S.

During 2006 I was employed by an Italian company in Italy. And I still am. I therefore received all my income, and paid taxes, in Italy.

I am trying to understand how and what to file on the 2006 tax return. And how my wife should be filing (she has a W-2 and interest. I always did her tax returns in the past as they were fairly easy to do)

Can you help ?

I am living in NJ now, still working for the Italian company (being paid and paying taxes in Italy), with a regular Employment Authorization Card.

Thanks a lot
Paolo

Dear Paola,

From your note, it would appear that you meet the "Substantial Presence Test" !

As far taxable income of your spouse is concerned, you basically include the W-2 income and report her income normally along with any other 1099-int etc.

The open question's in my mind are as follows:

1. Your filing status?
2. The Wages earned in Italy along w/ foreign withholding taxes?
3. How did you earn the money in Italy, were you in Italy earning this money?
4. How much time did you spend in US with your spouse?
5. If you are deemed to be a Non-Resident Alien, you would only be taxed on
Effectively Connected income to US, if so, we may be able to exclude your
income from reporting purposes.

I need more information in order to give you definite answers.

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