India to US: Tax Filing Checklist for NRIs & Dual Residents

Introduction

The management of cross-border taxes might lead to a total confusion of the minds of Non-Resident Indians (NRIs), people holding two residencies, and Green Card holders living between the USA and India tax systems. Each country operates its tax system with different rules, filing obligations, and reporting requirements, and non-compliance may result in penalties, double taxation, or even missing out on certain benefits like tax credits.

This checklist will help NRIs, dual residents, and Green Card holders navigate the necessary steps of U.S. and Indian tax filing, as well as acquaint them with the US Citizen Tax Services in Hyderabad, Expat Tax Services, and India Foreign Tax Credit Accounting Solution, which are some of the innovative solutions.

1. Determine Your Residency Status

The first step in fulfilling your tax obligations is understanding whether you are a resident or non-resident for both the U.S. and India.

U.S. : There are three ways to determine if you are a resident of the U.S. either by being a citizen, having a Green Card or passing the Substantial Presence Test. If you are a Green Card holder, then you need to submit annual U.S. tax returns even if you are a resident elsewhere. It is at such instances that services like Green Card Holder Taxes and USA Tax filer In India Green Card Holder come in handy for your tax compliance.

India: Residency is determined by the number of days spent in India during the financial year. If you are a U.S. tax resident but have stayed in India for a considerable period, you might have the tax liabilities there.

2. Know Your Income Sources

Both the U.S. and India impose taxes on the global income of their citizens, meaning that one has to disclose:

• The income of the employee, which was earned abroad or in India

• The income generated by leasing your property in India

• The interest or dividends generated from Indian bank accounts

• The increase in the value of shares or property resulting from their sale

A person who files a return in the USA but is in India will have to bring together both income streams and make the correct reports in U.S. and Indian filings.

3. File U.S. Tax Returns on Time

NRIs and dual residents must strictly adhere to U.S. filing deadlines. Generally:

• April 15 – The normal due date for individual returns

• June 15—An extended deadline for U.S. citizens or Green Card holders residing abroad

If you are in Hyderabad or at any other place in India, the USA Tax Service In Hyderabad and Expat Tax Services in Hyderabad will facilitate you in the preparation of true filings. These services not only deal with the complete reconciliation of foreign income but also guarantee that the IRS requirements are met.

4. Claim Foreign Tax Credits

Non-resident Indians (NRIs) have been doubly worried about the issue of double taxation, which is the biggest problem. Luckily, the India-U.S. Double Tax Avoidance Agreement (DTAA) and IRS foreign tax credit provisions come to the rescue and extinguish a big part of the tax burden.

Coming to India Foreign Tax Credit usage in Hyderabad or through an India Foreign Tax Credit Accounting Solution, the following can be achieved:

• Make a U.S. tax liability deduction in respect of Indian taxes paid

• Prevent twice paying on the same income

• Be assured that you meet the requirements set by both Indian and U.S. authorities

5. Report Foreign Bank Accounts and Assets

The U.S. imposes the reporting of foreign financial holdings:

• FBAR (FinCEN Form 114): A must if the total of your foreign bank accounts is over $10,000.

• FATCA (Form 8938): Settings for accounts and assets with higher values were the filing of this form was necessary.

They are a great help with complicated paperwork when talking about taxes for the expats.

6. Handle Green Card Holder Taxes Carefully

Although residing in India, Green Card holders are still obligated to submit U.S. tax returns every year and disclose their worldwide income. It is worth noting that” exit tax” consequences can be triggered if a Green Card is given up in an illegal manner, and the person is a temporary resident. 

Considering the complexities involved in Green Card Holder Taxes, the right team of experts can make the separation process a smoother one and also ensure the fulfillment of the tax obligations to both governments.

7. File Indian Returns if Applicable

Suppose you mainly live in the U.S. but still have to file returns in India in that case:

• You derive income from real estate, business, or securities in India.

• You want to get a refund of the excess TDS (Tax Deducted at Source) that has been deducted.

It is very important that you coordinate your filings with a USA Tax Filer In India to ensure that your credits are properly updated in both countries.

8. Seek Professional Expat Tax Services

It takes a lot of time and effort to keep up with the changes in tax laws, and doing it by yourself can be quite dangerous. Some professional services, such as

• USA Citizen Tax Services in Hyderabad

• Expat Tax Services in Hyderabad

• USA Tax Service in Hyderabad

provide the necessary expertise for a complex situation involving cross-border tax compliance. They are not only involved in the preparation and filing of returns, but they also assist in efficient tax planning, retirement contributions, and investment strategies that are compatible with both the Indian and U.S. tax systems.

9. Common Mistakes to Avoid

• Failing to file the FBAR or FATCA reports on time

• Failing to take benefit of the India Foreign Tax Credit Accounting Solution

• Neglecting the Green Card exit tax issue

• Thinking that only income made in the U.S. will be taxed

• Delayed filing and getting penalized in both countries

Final Thoughts

For NRIs, Green Card holders, and dual residents, filing taxes between the USA and India is a complex balancing act. From residency rules to worldwide income reporting, FBAR compliance, and claiming foreign tax credits, every detail matters.

The safest and most efficient approach is to work with specialized firms that provide Expat Tax Services, particularly those with a presence in India, like Expat Tax Services in Hyderabad or USA Tax Filer In India Green Card Holder expertise. With the right guidance, you can ensure compliance, reduce double taxation, and manage your financial future confidently across borders.