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hutington · Apr 9, 2008, 05:05 PM

Hello,

I am a H1-b worker from India. Started working for the first-time in US from August, 2007. So I am a non-resident alien for the 2007 tax purpose. I am getting paid from both India and US for the same job. The Indian salary is paid in rupees and the Indian income tax is held at source. Since the wages are "effectively connected"(in the sense, they are for the same services I do in US), I need to report both the wages on 1040nr form. I found that under India-US treaty, article 16(2), the payment I receive from India can be exempted for tax calculation. This is because I spent more time (>183 days) in India during 2007. This need to be specified on Line 22 of 1040nr form, and the treaty number need to be specified in page 5 line M. Then I can calculate the taxes for wages I recd from US.

Are these conclusions correct ?

Thanks

MukatA · Apr 10, 2008, 01:24 AM

Did you get W2 from your employer? If yes, file on the basis of W2.
H1-B is work visa. No treaty benefit applies on it.

If you are in the U.S. for less than 183 days and the income is borne by a foreign company, then it is exempt. On H1-B you are working for an U.S. employer.

hutington · Apr 10, 2008, 04:22 AM

Thanks a lot for the reply. Yes I got W2 from the employer. So you mean no need to disclose the salary from India?

The article 16(2) deals with cases of people working in US and receiving salary in India (it is different from article 12 which deals with students (F), exchange visitor in J visa). Only condition is that you need to in India for > 183 days and the employer in India is indian resident.. So I thoguh my Indian Income falls into that category. Will you geive a link which states that H visas cannot avail treaty benefit ?

Thanks a lot for your repose!!