Hi,
I am planning to move to US (with my family of 4, wife not working) in July on L1 and can modify my flight date to get below options:
1. Arrive early july, meet SPT, be resident - pay tax on worldwide income but get benefit of deductions
2. Arrive August, be non resident - Pay negligible tax in India for this year, pay tax on US income only without deductions. But I earn lower salary as I remain longer on India payroll
Can you suggest some pros and cons of both approaches?
1. Can non residents claim any tax deductions at all? eg. 401k, IRA,Health Savings Account, Insurance expenses, movement expenses etc
2. I see a standard deduction for married filing jointly. What the benefit of dependents (kids)? I hear this cant be applied for Non residents either
3. Any non-tax implications of Residence vs Non residence? (eg. i read somewhere Non-residence dont get Stimulus but residence do)
4. Whats the US-India Treaty rate of tax on Salary?
5. Resident Alien pays tax on entire Calendar year worldwide income? Eg. For salary earned until April, I have paid tax in India already. Will that also be considered for US taxation slabs
6. I also see a first year choice option - can I avail that if I come in August? In this case I guess I can postpone this decision for later
7. Do Non residents pay FICA or State taxes or just federal?
