I am on H-1B visa and I have multiple bank accounts in India (my country of citizenship), in which I am a joint owner in some & sole owner in the rest. My total 2021 Indian bank balance (including those in which I am secondary owner) is more than $50000, but my total income through interest in those banks is around $2000. Questions:
- What are the things I need from my Indian bank accounts for 2021 tax filing?
- What are the steps I need to take on TurboTax online (or forms I need to submit additionally) to do the foreign taxes & reporting of the Indian accounts?
- In India, if income is less than a particular amount then we don't have to pay any taxes, so I didn't have to pay taxes for my Indian interest income back in India. Do I need to pay taxes on those income in US?
- In my situation, will I be able to apply any foreign tax credit?
- If some of those bank accounts are resident accounts (not NRO/NRE), should I file taxes for those? If I file taxes for those accounts here, it might incur a penalty back in India because according to FEMA, all resident accounts should be converted to NRO once a person becomes NRI citizen.
