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    Arun U Rajamma's Avatar
    Arun U Rajamma Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Jan 2, 2008, 01:09 PM
    L1 / L2 Taxation/Wage
    Hi,

    Right now I am on L1 visa working on US payroll, filing taxes in the US. However towards my transition back to India, I might have to switch to a lesser salary for the last 8 months of my stay in the US. Since this transition salary is much less than what I am earning now, I would like to make sure that I do not fall below some stipulated minimum wage. Is there such a minimum wage for L1 and if there is one, what is it?

    Also if I travel to India, then come back on L1 and work for the next 8 months in the US before I move back completely to India, can I work in the US with my Indian salary being credited in the US as US payroll during those 8 months ? I raise this question because my Indian salary is almost half of my current US salary and if I draw salary in India I understand that I will be double taxed.

    Thanks,
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 3, 2008, 08:17 AM
    Minimum wage laws may or may not apply to L-1 visa holders. That is a LEGAL question best answered by an immigration attorney.

    If you are taxed on your salary by the Indian government, you can claim a Foreign Tax Credit using Form 1116 on your U.S. tax return to avoid the double tax.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Jan 4, 2008, 02:51 AM
    Arun U Rajamma can not take foreign tax credit for income from the U.S. sources.
    He can get foreign tax credit in India on the U.S. income on which he paid taxes in the U.S. (if he is required to declare L-1 income in India).
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 4, 2008, 08:46 AM
    MukatA's posting is accurate.
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