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-   -   Non Resident Alien failing Subs . Presence test (https://www.askmehelpdesk.com/showthread.php?t=315074)

  • Feb 9, 2009, 05:23 AM
    mvramach
    Non Resident Alien failing Subs . Presence test
    Hi,

    I have worked on H1 for 160 days in 2008 and returned to India in Dec 08, hv earned gross taxable income of around 40k

    I need to know :

    1. Is 1040 NR-EZ enough or should I add foreign tax credit with Form 1116 - if so , under what heads?

    2. How do I show the <183 days stay in last 3 years - W2 does not hv any proviso for days, - should I add a proof from the passport stamping or something?

    3. How can I file from the IRS site - it points to many free sites ?

    4. Can I get back all my fed and state taxes paid - I heard that India has a double taxation treaty with USA facilitating this ?


    Thanks in advance
  • Feb 9, 2009, 06:44 AM
    MukatA

    1. On nonresident tax return, you do not report your foreign income so you do not file Form 1116.
    3. Nonresident return can not be efiled.
    4. You do not get any treaty deduction on H1-B income.
  • Feb 10, 2009, 01:49 AM
    mvramach

    Why not on H1 income ?
  • Feb 23, 2009, 03:32 PM
    AtlantaTaxExpert
    Because that is the way the treaty is written!
  • Feb 23, 2009, 11:44 PM
    MukatA
    Quote:

    Originally Posted by mvramach View Post
    Hi,
    4. Can i get back all my fed and state taxes paid - i heard that India has a double taxation treaty with USA facilitating this ?
    Thanks in advance

    Your H1-B income is U.S. income. You will get double taxation treaty benefit on your India Tax Return if you must report the U.S. income on India tax return. For India taxes post at mytaxes - Index
  • Feb 24, 2009, 04:47 PM
    mvramach

    It is like this - my US taxable salary was X which comprised of Y (dollar equivalent of Indian taxed salary) + Z(purely $ ) - so the point is why should I pay double tax for Y - how/ where do I indicate/ get exemption for this ?
  • Feb 24, 2009, 07:15 PM
    MukatA

    1. If you must report income earned while in India on the U.S. tax return, then you get double tax benefit in the U.S.

    2. If you must report income earned while in U.S. on the India tax return, then you get double tax benefit in India.

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