[shasankm]

Hi

I'm a Greed Card holder and now I'm working and residing in India. My employer pays me Salary in India and withholds income tax in India.

I travel to US occasionally on Business Trips, does my employer have to withhold taxes for the trips. I receive no compensation in US, everything is received in India.

If the employer is liable to withhold taxes, could you tell whether the employer is liable to pay State Income tax and for which state does he have to withdhold

Please advise.

Thank

[AtlantaTaxExpert]

As a green card holder, you are required to file annual U.S. income tax returns on all world-wide income, not just the income earned in the United States. Your employer has NO requirement to withhold income taxes.

Due to the combination of the Foreign Tax Credit (for Indian income taxes) and the Foreign Earned Income Exclusion, it is likely you owe NO taxes to the United States, but you still must file the tax return,

[shasankm]

Thanks for the quick response. It was very helpful.

I would like to add one more point - My employer pays me Perdiem allowance during my trips. Is that going to change the withholding liability of the employer.

[AtlantaTaxExpert]

No, not at all.