[peacemaker123]

Hi

I'm a non-US citizen.(Maryland) I own a website running Google adsense
And making some money (not too much but doing OK)

All of my website activities mentioned below are managed by a person (my relative)
In India but I work in US since August 2005 on L1A visa and I'm not
Supposed to work as per the US law.

(1) Setting up a web server, hosting service, or website
(2) Developing content for my website
(3) Marketing to create a user base for my site
(4) Maintaining my site


The website is registered using Indian address and online since August 2001

I pay taxes in both, US (for my daily job) and in India (other income).
I believe I should be paying taxes in India for the Adsense income but
I receive payment in my US bank account
Since I'm already here.

Questions:
----------
(1) Where shall I pay taxes? In US or India?
(2) Can I pay someone in US and manage it? Do I need to do some paperwork for this?

Thanks

[AtlantaTaxExpert]

1) Assuming you have been in the U.S. since before 1 Jan 2006, you will be taxed as a resident alien. Resident aliens must report ALL word-wide sources of income. If you pay taxes to India on this income as well, you can claim either a Foreign Tax Credit or Foreign Income Exclusion.

2) Yes, you can pay someone to manage the site. You can either start a subchapter S corporation or as a sole proprietorship (Schedule C).

[peacemaker123]

Thank you sir !

One more question - Google is paying in my US bank account. Is it legal to get payment in US bank account for foreign income?

Thanks

[AtlantaTaxExpert]

Yes, it's perfectly legal.

However, if you use a U.S.-based bank, remember that the bank is obligated by law to report the transactions to the IRS. If the cash volume is high enough, the IRS will expect the money to be reported in your tax return.