I am working in US with H1B visa, and filing tax return on my US income. How should I treat second income from outside US in tax return? Thanks a lot.:confused:

I assume you have been on the H-1B visa for all of 2005.

If so, you must declare the out-of-U.S. income and pay taxes on it. Now, you can claim the Foreign Income Exclusion (Form 2555) or Foreign Tax Credit (Form 1116) if you meet the conditions.

Thanks a lot...

Glad to help!