I have a client who was working in US and came back to India permanently in 2008. She is getting pension, Social security & annuity payments and rental income from her house at VA. In India, she has interest income from fixed deposits.

Please guide me regarding filing of her US return for 2010. I am planning to file her US return first and then file Indian return.

My questions are:
1. Whether can I file Fedral and state returns online? If not, how should I go about in filing her returns from India?
2. For condisering her Indian income for US return, whether I should consider interest income from Jan 10 to Dec 10? Or some other period?
3. How the credit for tax paid in India should be taken on US return and vice-versa while filing Indian return for FY 2010-11?

Do guide me.

Thanks...

Regards,
Prasanna