Hi,

I am a L1 visa holder from india and was working in massachusetts from aug 2005 to dec 2005 as a contractor from my original company in india.

I used to receive the US salary from aug 2005 to dec 2005 for which i have the W2.

During the same period i also used to receive my indian salary (paid by my company in india).

This indian salary given was nothing but a part of US salary.
My US Pay slips show some amount as "indian salary"

I notice that in the W2 issued to me this indian salary has not been deducted since i have already paid the tax for this amount in india.

Can i subtract this india salary amount from my US taxable income and pay the tax?

How should i be considering this india salary amount in my tax returns for 2005?

Regards
Madhusudhan S.

AtlantaTaxExpert

I believe that, as a L-1 visaholder, you must file as a resident alien.

That being the case, you cannot subtract your Indian salary from your W-2, because the U.S. taxes ALL income from resident aliens.

You can, however, claim either a Foreign Tax Credit (Form 1116) or ask to have the Indian-based income exempted from taxes (Form 2555).