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pheno_1
Jun 20, 2012, 04:15 AM
I am an Indian citizen, considered a resident in Singapore and tax payer thereof for the last 3 years (4 years inclusive of this years filing). I am relocating to the US on a work permit.
1. The financial year in SG and US is the same - Jan - Feb. I expect to file taxes here before leaving. So will I be taxed only for the time I actually stay in the US?
2. I believe US has a double taxation treaty with India, but I haven’t paid taxes in India for the income I earn in Singapore given I am a resident here. So how will this be taken into account while filing taxes
3. Worldwide taxation - I have no income from any other source apart from my employment but I retain a bank account in India to send money to - so yes do earn a little from the interest. Does that need to be declared while filing US Taxes?

Please advice.

pheno_1
Jun 20, 2012, 09:19 AM
Have a question, if we have spent substantial time on a B1 and thereby qualify the 183 day criterion as provided here - then, does that mean we qualify as a resident alien for that year

Publication 519 (2011), U.S. Tax Guide for Aliens (http://www.irs.gov/publications/p519/ch01.html)

AtlantaTaxExpert
Jun 20, 2012, 09:23 AM
No, it means that, in the FIRST year, you meet the Substantial Presence Test, you qialify to file as a dual-status alien.

In order to file as a resident in the FIRST year, you must spend EVERY day of the year in the United States.

pheno_1
Jun 20, 2012, 09:30 AM
As a dual status alien are we taxed like this
.Alien status - income from time spent outside US not taxed
Resident alien status - income from time spent in the US taxed

At what rates?

AtlantaTaxExpert
Jun 20, 2012, 09:32 AM
Tax rates depend on level of income.

It starts at 10%, then 15%, then 25%, then 28%. There ARE higher rates, but that is for income in excess of $150K.

pheno_1
Jun 20, 2012, 09:38 AM
Oh OK. I understand.
So for the time spent in the US and income acrued thereof, say the amount totals to 10k.
One will be taxed at resident rates for 10k.
Please advice.