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optmytax
Feb 14, 2012, 01:00 PM
Hi,

I was in US on my B1 visa for 5 months. During this period, I was getting paid in India and I paid taxes on that income in India. Later, I came back to US on H1B. My total stay in India is 160 days and total stay in US is more than 180 days. I do pass SPT test.

In India, Financial year is from March to April. I was getting paid in India from March to Nov (though I was in US on my B1 visa (my Indian salary)). I have a US income from Nov to Dec. I have already paid taxes in India on income received from March to Nov. Now I want to file my US taxes. Since I pass SPT, I need to file as a dual status. While filing dual status, I need to show my India income in US. But I have already paid taxes in India on that income. So how to do I claim tax benefit for the tax paid in India while filing taxes in US ?

Do I need to produce Indian Tax Return ? India's tax return would only be available after March 31st. Please help. If I show my Indian income, it would approximately add $16k to my US income from March to Nov. How much more tax I would need to pay ?Hi,

I was in US on my B1 visa for 5 months. During this period, I was getting paid in India and I paid taxes on that income in India. Later, I came back to US on H1B. My total stay in India is 160 days and total stay in US is more than 180 days. I do pass SPT test.

In India, Financial year is from March to April. I was getting paid in India from March to Nov (though I was in US on my B1 visa (my Indian salary)). I have a US income from Nov to Dec. I have already paid taxes in India on income received from March to Nov. Now I want to file my US taxes. Since I pass SPT, I need to file as a dual status. While filing dual status, I need to show my India income in US. But I have already paid taxes in India on that income. So how to do I claim tax benefit for the tax paid in India while filing taxes in US ?

Do I need to produce Indian Tax Return ? India's tax return would only be available after March 31st. Please help. If I show my Indian income, it would approximately add $20k to my US income from March to Nov. How much more tax I would need to pay ?

AtlantaTaxExpert
Feb 14, 2012, 04:55 PM
You need to claim the Foreign Tax Credit (Form 1116) on your dual-status (joint if you are married) tax return.

Get my email address from my profile if you want professional help.

MukatA
Feb 14, 2012, 10:03 PM
When did you enter US on B1 visa? When did you enter on H1-B? Are you married?
It appears from what you have mentioned that you are dual status. If you are not married, during your resident period you must report worldwide income in US.
If you are married, you can choose to file joint return as residents.