H1B - Returned to India - Tax Help

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VikTheRam
Posts: 1
Joined: Fri Mar 19, 2010 9:17 am

H1B - Returned to India - Tax Help

Post by VikTheRam »

The following are the facts of my case:

  • Quit my job in the US and moved back to India for good in Oct 2009.
  • Prior to that been on H1B since Nov. 2007.
  • Currently self-employed in India since Nov. 2009.
  • Have W2 for 2009 from my employer with both federal & state taxes withheld.
  • Have no intention of returning to the US, although do continue to operate US bank accounts
Questions:
[LIST=1]
  • What will be my tax filing status - resident alien or dual-status? And accordingly which form do I need to fill?
  • Does my Indian income for Nov & Dec 2009 need to be accounted for in my US tax return?
  • Can I deduct moving expenses i.e. cost of one-way flight back to India, excess baggage & transportation costs etc.? Any forms to be filled for the same?
  • I had some personal property stolen whilst on a business trip to europe in June 2009. This included my laptop, cellphone, passport etc., for which I have a police report. Can I deduct any of these losses and upto what amount? Any forms to be filled for the same?
  • Prior to moving back to India, I donated some clothes, furniture etc. to charitable organization which is eligible to receive tax-deductible contributions as per IRS publication 78. How do I calculate / substantiate the value of my contribution? Any forms to be filled for the same?
    [/LIST]Any responses to any of the queries above will be most helpful. Thanks for your help.
    vsblr
    Posts: 37
    Joined: Thu Apr 16, 2009 12:16 am

    H1B - Returned to India - Tax Help

    Post by vsblr »

    I had a similar question which bmukherji answered here: http://www.r2iclubforums.com/forums/showthread.php/666-MT-US-Tax-for-NRA-%28Non-Resident-Aliens%29?p=267666#post267666

    1. My understanding is you have to file as Resident Alien for 2009 based on substantial presence test (see flow-chart on page 5 of IRS pub 519): primarily #days in 2009 + 1/3 * #days in 2008 * 1/6 * #days 2007 > 183. So you file using 1040 and you can use online filing.
    2. Global income has to be reported using 1040 FEC. But you can try to take a foreign tax credit.
    3. You can claim moving expenses as a deduction separate from itemized deductions (pub 523 and form 3903).

    4. I am not sure, may be it is possible to take a itemized deductions. Pls search around.
    5. Those can only be itemized deductions - which you take using Schedule A. But that will prevent you from taking standard deduction of 10950 (for married filing jointly), which may be better for you.

    Tax filing software ( I have used Tax Act) can take care of cases 2. 3. and 5. by answering the relevant questionnaires.
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