I came USA on 09-JUN-2016 in H1B visa and I would like to show my Indian income from 01-Jan-2016 to 08-Jun-2016.Where to declare in turbo tax ?I already paid tax in India

[bine22]

are you married?

[it-arunabha]

Yes I am and I would like to submit return jointly

[bine22 · Accepted solution]

Technically, you are a dual status alien. Dual status aliens cannot file a joint return. If you want to file jointly, you need to add a statement that you and your spouse want to be treated as resident aliens for the entire year.

You then report your and your spouses foreign income under less common income - foreign earned income. You would not qualify for any exclusion though. You can add the foreign taxes paid under credits and deductions - estimates and other taxes paid - foreign paid taxes. You can use the conversion rates from the dates you received income/paid taxes abroad, or use the annual average conversion rate. The IRS has a list here: https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

[it-arunabha]

Me and my wife have been here for more that 183 days so in that case I believe I can treat myself as resident aliens for 2016. My question is why I will not be qualified for foreign income exclusion? What I earned in India I already paid all taxes there then why should again I pay tax here in USA? Also you said that I can add foreign taxes paid in foreign taxes segment but in which segment actually I can claim as my income was salary income not dividend nor from other.

[bine22]

You are a dual status alien. That happens in the first year you meet the Substantial Presence Test and weren't in the Us on January 1st of that year, as residency starts with the first day of presence in the US. To be eligible for the foreign earned income exclusion you must have been a resident alien the entire period (which is a year). So your only option would be the foreign paid tax credit, which gives you a credit against US taxes of the taxes you paid in India on that income. Or you file as dual status, but that is not an easy return to prepare.