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  Answer this Question    Ask about Taxes    Ask about another Subject  
 

vijoshi
Mar 3, 2008, 09:33 AM
From January 07 thru march 07, I paid US taxes. This income was also reported as "WORLDWIDE" income and corresponding taxed paid on my Indian tax returns. I have Indian TAX certificate for the tax paid in Indian Rupees on the US income.

While filing my US tax returns, can I get exemption on the income from jan 1st 2007 thru March 31st 2007 since I also paid taxes in India for the same income earned in the US.

Your help is appreciated!

MukatA
Mar 3, 2008, 02:28 PM
"From January 07 thru march 07, I paid US taxes."
Please clarify: Where did you earn this income form Jan 07 to March 07? (India or U.S.). Where did you pay the taxes?
Also please explain more about your India Tax return. What income you reported and what forms were filed?

vijoshi
Mar 3, 2008, 02:44 PM
Hi MukatA,

Jan 2007 thru march 2007 - this income was earned in the US. For tax returns filed in India ( where the financial year ends on March 31st) - this income( approx 15,000 USD) was reported as WORLD WIDE income ( in addition to my Indian salary which I earned until Jan 4th 2007.) when filing by Indian tax returns. So I have paid taxes in the US (FEDERAL, STATE, and Social Security) for jan-march and also in India separately since this income was counted as my WORLDWIDE income.

MukatA
Mar 3, 2008, 07:23 PM
I don't think that you were required to pay taxes in India on the income earned in the U.S. Even if you declared the U.S. income in India, did you claim credit for taxes paid in the U.S.?

Normally, when you file the U.S. return, you report your world wide income. On the foreign income, you claim credit for the taxes paid in the foreign country.
Thus on your India return, you should have claimed credit for taxes paid in the U.S.