How to File USA Taxes from India: A Step-by-Step Guide for NRIs

 Introduction

The task of filing U.S. taxes for Non-Resident Indians (NRIs), Green Card holders, and U.S. citizens living in India may be seen as a journey through a labyrinth. According to the U.S. tax system, all citizens and permanent residents must file their taxes once every year, regardless of where they live. In case you're an NRI or an expatriate and are still questioning the process of staying compliant, our blog is an excellent reference.

It is an essential part of Accelero Corporation to help our customers by extending the work of our expert chartered accountants and tax analysts to make the process of tax return filing in the U.S. look easy. Whether you are earning in rupees or dollars, we offer the full range of services and can assist with a guide to filing your U.S. taxes from India.


Step 1: Know Your Tax Obligations

A citizen of the USA, a Green Card holder, or someone who files a US tax return from India, still has to report their worldwide income to the IRS, i.e., they have to do so even if they live and work in India.

Here are the specifics of what they must report:

  • Wages acquired in India

  • Interest and dividends from Indian bank accounts

  • Rental income from Indian property

  • Investment in mutual funds abroad

Missing out on filing your U.S. taxes can lead to hefty penalties, so awareness is key.


Step 2: Gather Your Financial Documents

To file taxes, gather all the papers regarding your income from both India and the USA. They might be:

  • Form 16 (if you are salaried in India)

  • Bank statements

  • Investment proofs

  • Details of foreign assets (if any)

  • Last year's U.S. tax return (for reference)

Accelero Corporation provides its clients with a checklist to follow to make no mistakes during the filing process.


Step 3: Consider Tax Treaties and Exclusions

The United States has a tax pact with India that prevents it from taxing the same income twice. The Foreign Earned Income Exclusion (FEIE) presents NRIs with an opportunity to completely avoid tax, or they can use the Foreign Tax Credit to reduce their U.S. tax liability. However, the right choice of these two depends on how they are paying you and the status of your residency.

At this point, the advisors of the Accelero Corporation come into the picture by navigating the complicated tax treaty terms for a lawful tax avoidance, besides being your tax helper.


Step 4: File Your Federal Tax Return

You can e-file your tax return through TurboTax or with a tax preparer who is certified. Although for NRIs, this is not always a simple task. It involves preparing Form 1040 as well as several additional schedules and disclosures.

FATCA (Foreign Account Tax Compliance Act) and FBAR (Foreign Bank Account Reporting) regulations are another requirement, depending on whether you have more than $10,000 in overseas accounts. Filing incorrect or incomplete forms is subject to severe fines. That's why many USA Tax Filer in India opt to take the services of professionals such as Accelero.


Step 5: Don’t Forget State Taxes

It's well known, if you had resided in the U.S. before, you might be liable to pay your state taxes. A wide array of rules for expat taxes will be found with each state, including specifics about their respective taxes. While California is distant in terms of residency rules, Florida decided not to tax a single cent of the state income.

The tax team at Accelero Corporation will be able to identify and confirm your status, so your obligations will be met lawfully through that period in your particular state tax situation, which is our main responsibility as a tax team.


Step 6: Plan for the Future

When paying taxes, individuals should go beyond adherence to laws as well; rather, they should focus on planning. If planning to come back to the US or having financial shares there, one can become a tax-efficient person today and a wealthier person tomorrow.

We guide Green Card holders and US citizens living in India to manage their funds in such a way that they not only fulfill their obligations but also pay their taxes at a legal minimum, or sometimes even less.


Why Choose Accelero Corporation?

Accelero Corporation has a seasoned team of CAs (Chartered Accountants) and U.S. tax experts. They are specializing in helping NRIs, Green Card holders, and U.S. citizens in India to maintain their cross-border taxes efficiently. The experts provide a complete package of support, such as document collection to the final filing process, making your life trouble-free.

Your needs are our first concern. No matter if you earn a salary in Hyderabad or you own a business with multiple streams of income, we have custom solutions to offer that will cater to all. The USA tax filing process in India can be much simpler than ever before.
Location: Gachibowli, Hyderabad, Telangana, India

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