Hi,

I was in USA for a few months in USA when my Federal tax was deducted. But before Dec 2005 I had proceeded back to India and hence was unable to file my tax returns. I am in USA again and want to file the same now. During the rest of 2005 when I was in India, I was paying my Income tax there and have even filed my tax returns in India.

Under such circumstances, due to the USA-India tax treaty, would I be refunded all the Federal Taxes collected since I had paid the Income tax in India too?

If I owe something back to the IRS will I be penalised?

Should I file the Tax Returns for 2005 now?

Regards
Pradeep

Pradeep:

Sorry for the delay in answering; there was a glitch in the updating process on my computer.

You should file your 2005 tax return without delay. It is likely you should file Form 1040NR-EZ, but I am not SURE of this because you have not provided enough information.

Whether you have to pay or not depends on how much you earned in 2005 and how much income taxes were withheld. If you paid taxes on the U.S.-based income in India, you can claim a Foreign Tax Credit using Form 1116.

If you need my professional tax help, contact me at [email protected].