[Priya_S]

From January 07 through march 07, I paid Tax in India. I have Indian TAX certificate for the tax paid in Indian Rupees.

This income is also reported as "WORLDWIDE" income and taxes are calculated and paid on my US tax returns in 2007 again.

While filing my US tax returns during 2007, can I get exemption or credit on the income from jan 1st 2007 through March 31st 2007 (World wide income) since I also paid taxes in India for this income.

From Jan 07 to March 07 - income earned is in india only.
From April 07 to Dec 07 income earned is in US only!

Your help is appreciated!

[AtlantaTaxExpert]

If you were IN India when you earned this income and paid taxes on it, and you were in India for AT LEAST a year, then you can claim a Foreign Income Exclusion on that India-sourced income and pay NO U.S. taxes. The for is Form 2555.

If you were in the U.S. or otherwise do NOT qualify to file Form 2555, you can file Form 1116 and claim a Foreign Tax Credit. However, if the income is earned income, it is likely the credit will NOT be dollar-for-dollar, which is why filing Form 2555 is probably your BEST option.

[MukatA]

Read this:
Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

[Priya_S]

If you were IN India when you earned this income and paid taxes on it, and you were in India for AT LEAST a year, then you can claim a Foreign Income Exclusion on that India-sourced income and pay NO U.S. taxes. The for is Form 2555.

If you were in the U.S. or otherwise do NOT qualify to file Form 2555, you can file Form 1116 and claim a Foreign Tax Credit. However, if the income is earned income, it is likely the credit will NOT be dollar-for-dollar, which is why filing Form 2555 is probably your BEST option.

Hi
Thanks for the advice,
During 2007, I was in US from April 2007 to December 2007.
And from 2006 to March 2007 that's financial yr 2007 in India; I was in India.
So Can I file 2555?

[AtlantaTaxExpert]

Yes, on a pro-rated basis for the three month's of income earned in 2007.