Ask Experts Questions for FREE Help !
    mad_sudhan's Avatar
    mad_sudhan Posts: 2, Reputation: 1
    New Member

    Jul 20, 2006, 02:32 PM
    Home country salary from US salary

    I am a L1 visa holder from india and was working in Massachusetts from aug 2005 to dec 2005 as a contractor from my original company in india.

    I used to receive the US salary from aug 2005 to dec 2005 for which I have the W2.

    During the same period I also used to receive my indian salary (paid by my company in india).

    This indian salary given was nothing but a part of US salary.
    My US Pay slips show some amount as "indian salary"

    I notice that in the W2 issued to me this indian salary has not been deducted since I have already paid the tax for this amount in india.

    Can I subtract this india salary amount from my US taxable income and pay the tax?

    How should I be considering this india salary amount in my tax returns for 2005?

    Madhusudhan S.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert

    Jul 20, 2006, 03:29 PM
    I believe that, as a L-1 visaholder, you must file as a resident alien.

    That being the case, you cannot subtract your Indian salary from your W-2, because the U.S. taxes ALL income from resident aliens.

    You can, however, claim either a Foreign Tax Credit (Form 1116) or ask to have the Indian-based income exempted from taxes (Form 2555).
    r.ramya's Avatar
    r.ramya Posts: 4, Reputation: 1
    New Member

    Dec 15, 2011, 02:38 PM
    Is it mandatory to claim a Foreign Tax Credit in this case?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert

    Dec 15, 2011, 04:23 PM
    No, it is NOT mandatory. The Foreign Earned Income Exclusion (Form 2555) may have been possible, though NOT likely based on the information originally posted. Further, the poster does NOT have to claim the credit, but the result would be that the Indian salary would be taxed by BOTH the United States and India, not really the optimum solution.

    Also, he had to file jointly with his wife in order to file as a resident. Otherwise, he would file as a non-resident alien, in which case the Indian salary is NOT subject to U.S. income taxes.

    BTW, why ask about a case that is OVER five years old?

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Salary Taxes [ 1 Answers ]

How do I doFederal and Social Security Tax calculations for salary employees, using several dependants?

Salary car salesman [ 7 Answers ]

I am thinking of being a salesman and would like to know the salary and what/if you get commission for each car you sell?

Acountant Salary [ 4 Answers ]

How much does a Acountant make a year?

Salary Question [ 2 Answers ]

A business enterprise pays weekly salaries of $20,000 every Friday for the five-day week ending on that day. If the fiscal period happens on a Thursday, an adjusting entry would be necessary. This adjusting entry would consist of? A- Debit Salaries Expense, $4000 & Credit Salaries Payable, $4000...

Un-paid salary [ 2 Answers ]

I worked as a sales rep for a physical therapy center (for a short period, two weeks and 2 days) before I quite. I did not trust the owner/president of This small company and the work environ became totally negetive, and besides, I did not want to become too much in hock to him lest I get burned....

View more questions Search