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-   -   Indian Citizen,currently Singapore tax resident moving to USA - Tax Implications (https://www.askmehelpdesk.com/showthread.php?t=673046)

  • Jun 20, 2012, 04:15 AM
    pheno_1
    Indian Citizen,currently Singapore tax resident moving to USA - Tax Implications
    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.
  • Jun 20, 2012, 09:19 AM
    pheno_1
    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
  • Jun 20, 2012, 09:23 AM
    AtlantaTaxExpert
    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.
  • Jun 20, 2012, 09:30 AM
    pheno_1
    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?
  • Jun 20, 2012, 09:32 AM
    AtlantaTaxExpert
    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.
  • Jun 20, 2012, 09:38 AM
    pheno_1
    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.

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