NRI Tax Filing Mistakes That Can Delay Your U.S. Refund in 2025

Introduction

Filing U.S. taxes for Non-Resident Indians and Green Card holders residing in India can be compared to entering a labyrinth. Changes in tax laws, dual income sources, and IRS updates can lead to delays in your refund, even for minor mistakes. Our team of expert chartered accountants and tax analysts at Accelero Corporation is on your side wherever you are in this world, trying to keep up with U.S. tax regulations.

The reality is, most of the reasons for refunds being delayed are not due to complicated loopholes or wealthy client brackets, but simply due to errors. Most of these errors are easily preventable. If you’re a USA Tax Filer in India Green Card Holder, you must be well informed about these common mistakes that you can easily avoid, hence no stress in the 2025 tax season.

First off, we are going to discuss the NRI's top tax filing blunders that may put your refund on hold:


1. Missing or Incorrect ITIN/SSN Information

This may sound like a simple case, but incorrect Taxpayer Identification Numbers (ITIN or SSN) are certainly the most common issues that lead to IRS processing delays. Non-Resident Indians (NRIs) are one group of people who are particularly prone to such mistakes. They usually enter an expired ITIN or use their spouse's number incorrectly in a joint filing, and thus get themselves into trouble. Make sure to check that your ITIN has not expired and, if need be, update it before filing your return.


2. Failing to Report Worldwide Income

In case you are a U.S. citizen or Green Card holder, the IRS is after you to declare all your income, no matter if it was earned in India or anywhere else. Leaving out income from Indian sources like rental income, dividends, or capital gains may not only result in red flags, but also in the unnecessary delay of the process.

During the documentation process, Accelero Corporation suggests that a detailed income checklist be used to be sure that nothing is forgotten.


3. Not Claiming the Right Foreign Tax Credits

Numerous NRIs unintentionally double their tax liabilities to the tune of twice the amount of taxes that they would have paid in India and then in the U.S., which is due to not claiming the correct credits. The India Foreign Tax Credit in Hyderabad is basically a lawful instrument to counter double tax on those incomes that have already been taxed in India. If this is not done correctly (or even if it is not done), it can cause refund problems or even lead to an audit.

That is exactly the juncture of the professionals' role at Accelero who come in to render assistance. We will show you how to best utilize the FTC via Form 1116 so that you get the maximum refund.


4. Incorrect Use of Filing Status

How you file your taxes has implications on every aspect—from the amount of your refund, to the tax rate you have to pay. NRIs are frequently very puzzled about filing as single, head of household, or married filing jointly. Wrong filing status causes mistakes in the standard deductions that then result in IRS corrections and refund delays.

Why not take help from Accelero’s team, who will assist you according to your real U.S. residency, marital status, and the number of dependents you have.


5. Overlooking FBAR and FATCA Requirements

In case you have bank accounts abroad that, in aggregate, exceed $10,000 in value at any point during a year, you must submit the FBAR (Foreign Bank Account Report). In the same vein, FATCA is relevant if your foreign financial assets go beyond particular limits.

Not reporting such can lead to refund delays; besides that, you can be subjected to very high fines. A significant number of USA Tax Filers in India, Green Card holders, come to us to solve their problems. They are not aware of these duties until they get a notice from the IRS.


6. Filing with Incomplete Documents

W-2s, 1099s, Form 16 from India, bank statements, rental agreements, investment proofs—if you forget to provide even one critical document, you risk receiving a processing error. The IRS might suspend your return or even ask you for more documents, which in turn will result in a longer time before your refund is processed.

The folks at Accelero Corporation are big believers in advanced tax planning. That means you can give yourself plenty of time to gather and file all the paperwork you need.


Avoid Mistakes, File Smart with Accelero Corporation

U.S. tax filing as an NRI need not be a nerve-wracking or dangerous ordeal. The proper guidance, professional support, you can easily avoid these common tax filing mistakes and be assured that your 2025 refund will be smoothly processed.

Accelero Corporation is a company that specializes in global taxation, assisting NRIs, expats, and holders of a Green Card throughout all stages of the process—from income calculation to applying for foreign tax credits. If you need help understanding difficult forms or simply want to be sure that you comply with all requirements, we are at your service.

Contact us now to get the best team of tax experts and accountants, who are fully aware of what a USA Tax Filer In India Green Card Holder needs during the 2025 tax season, working with you.
Location: Sri Shyam Nagar, Telecom Nagar Extension, Gachibowli, Hyderabad, Telangana 500032, India

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