[PanamIndia]

Hi,

I came in US in Aug 2008. I paid taxes until Aug in Inida, then after I am paying tax in USA. Now I am planning to go back to India in November 2009. Will I come in Double taxation rule ? If yes, how it is calculated ? Can I get back my money from US Taxation Deprt for the period where I will pay in Inida too.

Also Please advice If I come back in end of February 2010 in USA. Should I pay for double tax ?

[AtlantaTaxExpert]

Panam:

Assuming you are single, you should have filed as a non-resident alien for 2008, in which case you would pay taxes ONLY on the income earned in the United Statesfrom the date of your arrival in August 2008 until 31 December 2008.

For 2009, you will meet the Substantial Presence Test in 2009, but your return to India will dictate that you file as a departing dual-status alien, filing BOTH Forms 1040 and 1040NR. Again, you will pay taxes only on income earned within the United States from 1 Jan until the date of your departure in November 2009.

In both years (2008 and 2009), no taxes should be due in India on your U.S.-sourced income. That being the case, there is no double taxation.