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maheshdehare · Apr 6, 2012, 11:42 PM

Hi,
I was staying in Detroit, USA in year-2011 on L1 visa along with my spouse and daughter who were on L2 visa.
I was paid monthly allowances by my Indian company to handle living expenses in US and a car and apartment was provided by the US company.
At the same time I was getting my full Indian salary in India. I also paid taxes on indian income in India.
My question is,
Do I need to pay taxes in US, as my stay was exceeded over six months.
If yes, the taxes should be only on US income (allowances) or my global income?
I appreciate any help in this.

Thanks, Mahesh

MukatA · Apr 7, 2012, 07:22 AM

When did you enter and depart U.S. Did you get W-2 from the U.S. company?

maheshdehare · Apr 7, 2012, 10:36 PM

I entered US on 17th March,2011 and left US on 22nd December,2011.

Thanks,Mahesh

maheshdehare · Apr 7, 2012, 10:38 PM

I did not get W2 from US company .

Thanks, Mahesh

AtlantaTaxExpert · Apr 8, 2012, 07:46 PM

Yes, you must file a U.S. tax return (dual-status), claiming the income earned from 17 March to 31 December 2011.

The dual-status return is NOT for amateurs; get professional help with some with experience filing a dual-status return.

You CAN claim wife and daughter as dependents oin this return, but you will need to submit Form W-7 to get them ITINs.

I can help you with the return AND the ITIN application; this IS whay I do!

If you want my professional help, look up my profile and you will find my email address.

maheshdehare · Apr 8, 2012, 10:03 PM

Thanks a lot for the information.
But, Do I need to submit Form W-7? I am already having SSN.
I have already paid taxes in India for the indian income, so is it true that I will have to pay taxes only on US income for the concerned period.
Secondly, my US employer did not file W-2 form, as I was paid by my Indian company through monthly allowances.
I am confused over this... how to proceed?

Thanks, Mahesh

AtlantaTaxExpert · Apr 9, 2012, 10:01 AM

The Forms W-7 for ITIN application is for your wife and child.

It does NOT matter that your employer failed to originate the W-2; you still have a legal obligation to file a return and report the income. You can claim the Foreign Tax Credit using Form 1116 for the taxes paid to India.

It MAY turn out that you owe no taxes on this income, but you STILL have to file the tax return.

maheshdehare · Apr 9, 2012, 10:38 AM

Thanks for the helpful information!
As now I am in India and may not go back to USA in coming months, is it possible to file the return and pay taxes online before the due date of 17th April 2011?
If yes, what should be the procedure?

Thanks, Mahesh

AtlantaTaxExpert · Apr 9, 2012, 09:49 PM

On-line filing is not possible with an ITIN application, but you DO have an automatic extension to 15 June 2012 due to you being in India.

MukatA · Apr 10, 2012, 05:35 AM

Your stay/job in U.S. was temporary so you can deduct expenses for lodging, travel and meals as itemized deductions. If these expenses were provided by your employer and are not reported as your income, these are not taxable.
However on the dual status return you will report your India income from March 17 to Dec 31, 2011. You may meet the requirements of Bona fide resident of India for the year 2011. So you can file Form 2555 to claim foreign income exclusion. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

Even if you do not have any taxable income in U.S. you must file your tax return if your income exceeds the filing requirement (if it is more than $3700).