NRI tax guides
Filing a US return with India in the picture
Two series. The first covers the US-side issues that come up for NRIs; the second shows how Indian income and assets are reported on the US return. General information, not advice.
Part 1
The US side: residency, filing and everyday issues
Where most NRI returns go wrong before India even comes into it: status, spouse, equity pay, withholding, states, family money and the move back.
Are you a US tax resident? Green card, H-1B and the 183-day test
Your US tax status decides the form you file and whether your Indian income is in or out. It has nothing to do with whether you call yourself an NRI.
6 min read
From F-1 to H-1B: the tax mistakes of the first few years
Non-resident returns for students, the treaty standard deduction for Indian students, FICA on OPT wages, and the Social Security agreement for staff posted from India.
6 min read
Spouse or parents in India: filing status, ITINs and dependents
Married to someone who is not yet a US resident, supporting parents in India, or claiming a child credit: what the rules allow and where people lose credits.
6 min read
RSUs, ESPP and stock options: the basis trap and the under-withholding problem
Why the broker form often overstates your gain, why 22% withholding is rarely enough, and how incentive stock options trigger the alternative minimum tax.
6 min read
Withholding, W-4 and estimated tax: avoiding the April surprise
Two-income households, side income, rental income from India and stock pay all under-withhold. The safe harbour rules and how to set up payments.
5 min read
State taxes: moving states, remote work and the SALT cap
Domicile versus statutory residence, part-year returns, the states that do not follow federal rules on HSAs, and how the higher SALT cap changes itemising.
5 min read
Money to and from family in India: gifts, loans and Form 3520
Who files what when parents send money for a house, when you support family in India, and when an inheritance has to be reported.
6 min read
Planning to move back to India: exit tax, final US return and what to close
The covered expatriate rules for green card holders and citizens, the final-year return, retirement accounts, and how India treats a returning NRI.
6 min read
Deadlines, extensions, amended returns and IRS notices: an NRI calendar
The dates that matter, the automatic extension for people abroad, what to do about missed years, and how to respond to a CP notice.
5 min read
Part 2
Reporting Indian income and assets on the US return
Interest, rent, property sales, mutual funds, FBAR, provident funds and the foreign tax credit: what to report, where, and what India exempts that the US does not.
Indian income on a US return: the map, and the rupee-to-dollar question
A US tax resident reports worldwide income. A table of where each common Indian item goes, what India exempts that the US does not, and which exchange rate to use.
7 min read
NRE, NRO and FCNR interest, and Indian dividends: what the US return needs
Interest that India exempts is still US income. How TDS and the treaty rate limit the credit, and when Indian dividends are qualified.
5 min read
Rent from a house in India: Schedule E, depreciation and the 30% deduction that does not exist
How rental income is computed under US rules, why depreciation is mandatory, how Indian TDS on rent fits in, and the effect on a later sale.
6 min read
Selling Indian property: capital gains, TDS, repatriation and the Section 54 problem
The US gain is calculated in dollars and can differ sharply from the rupee gain. How TDS on NRI sales works, and why reinvestment exemptions do not help in the US.
7 min read
Indian shares and mutual funds: capital gains and the PFIC problem
Direct Indian shares are straightforward. Indian mutual funds and ETFs are usually passive foreign investment companies, taxed harshly and reported on Form 8621.
7 min read
FBAR and Form 8938: reporting Indian accounts and assets
Thresholds, which Indian accounts count, how to convert balances, the penalties, and the options if earlier years were missed.
7 min read
EPF, PPF, NPS and Indian life insurance on a US return
Indian savings schemes were not designed with the US in mind. Where the treatment is settled, where it is unsettled, and what to ask.
6 min read
Foreign tax credit, the India-US treaty and filing a return in India
How Form 1116 works for Indian tax, the carryover rules, treaty rates and certificates, and when an NRI in the US also has to file an Indian return.
8 min read
Owning a business or a stake in India: Forms 5471, 8865 and the rest
A stake in an Indian private company, LLP or partnership brings separate US filings with penalties of $10,000 per form. Who must file and what is covered.
6 min read
These guides are written for general information and reflect the rules as we understand them at the date shown on each page. Tax law, thresholds and forms change every year. A US return is prepared and signed by a US CPA, and an Indian filing by an Indian Chartered Accountant.
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