Hi PK,
Thank you for the response and suggestions. I also have been inclining towards the desktop version.
My answers are below and I will appreciate your further suggestions.
- how did you file the 2022 return ( assuming that you had US sourced income during that period ) ?
I arrived on Dec 12th 2022 and worked in 2022 from Dec 13 to 31. However, the salary for that part was paid to me in Jan 2023 and is included in the 2023 W2. I received neither salary nor W2 or other forms for 2022 and was informed by my employer that I need to start filing tax from 2023.
- When you talk about income in India for Jan & Feb of 2023 in India -- is it for you ( how? ) or your wife ?.
My wife. She worked in India in Jan and Feb before resigning and traveling to the US in March. The salary was for those two months (though it was credited to her bank account only in April while she was in the US).
(3) When did you purchase/acquire your rental property , when did put it in service as rental , did you recognize it as rental income for your US return for 2022 ?
There are two rental properties. Both belong to my wife and she receives the rents. One was purchased in 2018 while the other she inherited in 2012. We plan to show it as rental income in 2023 when we file.
(4) your pension account -- is it available to you or is it like a trust that you can get distribution from when you reach superannuation or what ? How did you get the face value that you quoted ? The more info that you can provide the better focused the answer will be. So please consider providing details.
The pension plan belongs to my wife. It is not available to her. It is called NPS (national pension scheme) in India. She had it as she was a government employee while in India. It is a contributory scheme which acts like a trust or fund for distribution on superannuation and is controlled under the dept of finance of the central govt of India. Since she resigned early, she will not get any distribution now, only after a particular age, which I think is 60, another 15 years down the line.
The value I quoted is the approximate value of the fund on Dec 31 2023. I am not entirely sure how this asset is to be declared in the US.
Similarly, the life insurance policies for which we are paying premiums and have a current value and a defined maturity value on completion of the policy period in future – I am not sure how to declare.
Note that because of the US tax year being Calendar year, you will have to allocate your Indian income(s), taxes etc. to Calendar year 2023 ( for the 2023 tax year ).
I understand. The further questions I was planning to ask were about this reallocation. I find that an absolutely accurate splitting of taxes paid to year 2023 from the 22-23 and the 23-24 tax files of my Indian computation is nearly impossible. A reasonable approximation is the best I think I can do. Is that a generally acceptable situation?
I hope I have answered all questions and please let me know if any further clarification is required. Thank you very much for all your help.
