Hi,
I'm moving to India permanently in the 2nd week of January 2020. I would like to know the tax implications for yr 2020.
a) I'm neither a US citizen nor GC holder. I'm on H1B visa
b) For the year 2020, I won't be in US long enough to pass the presence test (less than 31 days in US for yr 2020).
c) However, I will be on US payroll until end of Jan or Feb. After that I will be on India payroll.
d) I will be leaving my investments in US as-is for most part of it which is going to earn dividend and interest over the course of the entire year in 2020.
I understand that I will be required to file my returns for 2020 (in 2021). But I have the below questions -
a) Does the presence test require one to be present physically within US territory or does it consider being on payroll as well for presence test?
b) Do I need to get a "Sailing or Departure Permit" from IRS before I leave?
c) Will I be required to pay taxes on Indian income in my US tax returns for 2020? (double taxation)
d) Will I be required to file FBAR along with my returns for the yr 2020. I will be having more than $10000 in my accounts from my income in India. If I'm considered a non-resident, I wont be required to file FBAR is my understanding. So, the answer to this question is dependent on the answer to (a).
