Taxes: 6 months on US payroll and 6 months on India payroll

[rajils]

Hello,

I was in US for 6 months on US payroll and in India for last 6 months on Indian payroll. I have the W2 for my US job, but it is not clear to me how do i report my Indian wages. Can somebody help where in TurboxTax should i report my Indian salary?

Thanks

[KurtL1 · Accepted solution]

To determine where you report your Indian wages depends if you a nonresident alien or resident alien for tax purposes for the first part of 2019.

If you were a nonresident you would file a Form 1040-NR to report all your wages. If you were a resident alien for tax purposes and left the United States during the year you are required to file a Dual Status Return.

Per Taxation of Dual-Status Aliens you must file 1040-NR - U.S. Nonresident Alien Income Tax Return or 1040-NR-EZ - U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return.

Attach a statement to your return to show the income for the part of the year you are a resident. You can use Form 1040, U.S. Individual Income Tax Return as the statement, but be sure to mark "Dual-Status Statement" across the top.

TurboTax does not support the Form 1040-NR. You will need to use Sprintax to file a Form 1040NR.  If you have questions you can contact Sprintax Help for assistance.

You can use TurboTax to prepare the Form 1040 for this filing.

[rajils]

Thanks for the replying. I have a green card thus i guess my status is 'resident alien'.  With that status, how do i report Indian wages?

[KarenJ2 · Accepted solution]

As a green card holder, you must file a US tax return every year declaring your worldwide income.

1. Using an exchange rate, convert your Indian wages for the second half of calendar year For 2019 to USD.  
2. Enter the USD amount in TurboTax under Wages and Income in the Foreign Earned Income Exclusion section (Enter Foreign Earned Income Exclusion in the search bar at the top of your screen and click Jump to)
3. You will not be taking the Foreign Earned Income Exclusion, however you need to enter the foreign income in this section.
4. Continue through the screens , it will tell you you don't qualify for the exclusion
5. Enter foreign tax credit in the search bar and click Jump to and enter your foreign taxes (in USD) in that section.

The foreign taxes will help offset any double taxation.