[abe4u]

Hi,

I returned to India in December 2007(was in US since 2006).
During 2007, my employer (am on an L1-B visa) paid me all my wages in US only.
However they marked a component of that salary as India Salary Component [ISC](amounting to around $5600 total for the year).

Since my return, the Indian Tax authorities taxed me on the India Salary Component in Jan 2008 amounting to about $600.

I plan to claim refund from IRS for this amount.
What I would like to know is:
1. Do I need to fill any form apart from 1116 and 1040 for claiming the refund?
2. The Foreign Tax credit in 1116 needs to be claimed as accrued or paid?

Relevant details:
Single filing
Approx W2 Wages: $57,000
Adg Gross Income (including the ISC) : $57,000 approx.
Federal Tax Withheld: $10,500 approx.
Taxable Income: $48,700 approx.
ISC component: $5,600 approx. (included in the W2)
Indian Tax: $600 approx.

Thanks.

Regards,
Abe

[AtlantaTaxExpert]

1) Dependong on WHEN you left the U.S. in Dec 07, you may need to file as a dual-status alien. Either way, Form 1116 is what you file IF the Indian taxes were collected in 2007. Use the collected amount on Form 1116.

2) Accrued.