Green Card Holder and Income Tax Payer in India need to pay tax/submit return in USA ?

I am an INDIAN (Passport Holder) 

I have recently obtained GREEN CARD(Permanent Resident of USA).I have Income from Investments in INDIA, Pay taxes and submit RETURN in INDIA.I am a retired senior citizen with no income in USA and living as a dependant.Will my Investments/Income in INDIA attract any taxes in USA and should I submit Returns in USA ? If so what details/documents I should submit under what Form  ?Kindly enlighten and reply in detail.thanksc s krishnamurthy  

3 Answers

  • 1 month ago

    Yes, you have to submit a USA income tax return unless your income is below a certain amount.

    You need to consult a paid tax preparer who is familiar with overseas investment incme. 

    • He has to file a US tax return because the FBAR is attached to it even if his income is below the statutory amount.

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  • 1 month ago

    As a legal permanent resident of the US (same as citizens, foreign workers in US, investors in US, and other "US persons" as defined in law), you are subject to US income taxes. US taxes ALL income from all sources worldwide, whether you actually live in US or not. Yes, all your income from India is subject to US income taxes, and you are required to file US income tax returns annually.

    IF India & US have a double-taxation agreement (ask your US tax advisor), you might get a credit toward US taxes for the taxes you pay to India. If no such agreement, what taxes you pay in India are irrelevant.

    You may also be subject to additional reporting requirements:

    - FBAR (now FinCEN form 114), reporting all foreign bank & other financial accounts;

    - Form 8938, report of all foreign assets.

    These two have very draconian penalties for failure to file, and these reports must be RECEIVED by the deadline, not just mailed & postmarked by the deadline.

    You are firmly snared in the US Tax Trap. Your only way out is to return to India to reside permanently, and upon your return to India, submit your green card with the form for revocation of legal permanent residency status to the US consulate nearest your home in India.

    Since you have retirement income, your relatives cannot claim you as a "dependent" on their income tax returns, even if you stay in their home. They do not get any sort of tax deduction for you (or for your spouse, if you have one).

    • No need for a formal expatriation.  That only happens after he has held is greencard for more than 6 years.

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  • Foofa
    Lv 7
    1 month ago

    I'd double check with an accountant but if you don't earn any money in the US you may not even be obligated to file a tax return here. Kinda depends on whether you're importing any foreign money and how much that might be.

    • As a greencard holder he is required to report his worldwide income.

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