@ezjava @LinaJ2020 Thanks for the question. I have a related question and wanted to understand this a bit more:
In your above example, lets say Rs. 200000 (say ~ $3000) you earned as interest in say 2020. Out of that India deducted the taxes at source (TDS) of Rs 60000 (say ~ $850) in 2020. Now the refund you got from India is usually next year (2021):
So, my questions:
1. When filing the 2020 taxes in US, should this be reported as $3000, ignoring the fact that the India tax refund will be received next year in 2021
OR
2. On 2020 US taxes, one will report $2150 ($3000-$850) as income AND then on your 2021 US taxes (when you receive your India tax refund) you report $850 as the income?
Thanks,
RG
