Folks
Hoping someone has dealt with this question before
I am an Indian citizen planning to R2I in 2011, from US after 5 years. I DON'T qualify for RNOR status.
My question is : If I leave in July, does that make me Resident for tax purposes in both India and US (b'cos India tax year is Apr to Mar). Then what are my tax implications for my Indian income and US income until July.
And what will be my tax implications in India and US, if I leave in May or June.
By the way, Iam married and have 2 kids. My family would most likely leave in May to ensure they get a school in India.
Tax status when doing R2I in July or June
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kkassociate
- Posts: 173
- Joined: Mon Oct 05, 2009 4:45 pm
Tax status when doing R2I in July or June
Hi Keen2go,
You will be considered as a ordinary resident for India tax purpose. Now for US you will be filing two returns. One that is 1040 as a resident and the other 1040 NR that is your exit return from US. Your global income will be taxable on your resident return i.e. 1040 whereas in Non resident 1040 NR return you will be reporting only US source income.
We assist in US and India tax filings and 401 K withdrawal strategies. You can email us on [email][email protected][/email] or visit us at www.kkassociate.com
Regards,
KKA
You will be considered as a ordinary resident for India tax purpose. Now for US you will be filing two returns. One that is 1040 as a resident and the other 1040 NR that is your exit return from US. Your global income will be taxable on your resident return i.e. 1040 whereas in Non resident 1040 NR return you will be reporting only US source income.
We assist in US and India tax filings and 401 K withdrawal strategies. You can email us on [email][email protected][/email] or visit us at www.kkassociate.com
Regards,
KKA