Foreign Earned Income Exclusion (FEIE) as we have already discussed in the earlier article, can be claimed on “foreign earned” income. Thus, primarily, salary and business income qualify for a deduction under FEIE. On the other hand, Foreign Tax Credit (FTC) can be claimed on any type of income on which tax has been paid…
What is Foreign Tax Credit (FTC)? Foreign tax credit is a credit which you can claim on the taxes paid to a foreign government. If you have paid taxes on your income to a foreign government, you can claim a credit of this tax on your US tax return. This will ensure that your income…
Foreign Earned Income Exclusion is a nice exemption that allows US Expats to avoid double taxation on their foreign earned income. As a US citizen or a US expat living abroad, you are supposed to disclose your worldwide income on your US tax return. Even if you are not staying in the US, you are…
Let us discuss in this article if you can transfer funds from India to US on sale of property. Transfer of money from India to US is subject to the RBI (Reserve Bank of India) regulations. Following is the step wise procedue which you would need to follow: Step by step procedure : 2. Obtain…
In this article, we will understand what is Foreign Tax Credit (FTC), who can avail it and how can it be claimed? Foreign Tax Credit is a credit availed on the taxes paid to a foreign government on the US return. The purpose of claiming FTC is to avoid double taxation. This credit can be…
How can you claim foreign tax credit on interest income in India on US tax return? Being a US citizen, you will have to disclose your global income on your US tax return. This includes interest income earned in India. In order to avoid double taxation, you can avail the “Foreign Tax Credit (FTC)” by filling…
You can claim Foreign Tax Credit on interest income in India on US tax return using Form 1116. To read more about claiming FTC, read here Foreign Tax Credit (FTC) Form 1116 helps you to take a credit for the taxes paid in a foreign country on your US tax in order to ensure that…
There are several provisions which allow US expats to claim the benefit of taxes paid in a foreign country on his US tax return. One of them is Foreign Earned Income Exclusion (FEIE) which can help you claim a credit of the tax paid on salary in India on US taxes. This exclusion can be…
You can check the status of your federal tax refund with the IRS after 24 hours after the IRS has received your e-filed return or after 4 weeks of your paper return. You can check your refund status by going to the link below. Make sure you have your SSN, tax filing status and the exact…
This article is meant to be a broad level tax guidance for US citizens relocating to India. In this article I will explain broadly how the tax system works and what are your overall reporting obligations to the IRS. The manner of reporting each specific item such as salary, interest and how to avail tax…
