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Level 2
posted Jan 25, 2022 3:18:00 PM

How to report foreign income?

I am a US citizen, and my spouse is living outside of the US (India). I am preparing my tax return by considering my spouse as resident alien for tax purposes. I am using TurboTax Premier Desktop edition for this purpose. I must disclose my spouse foreign earned income from India.

 

In the US, we file taxes for the previous year. However, in India, it's different as stated below. Should I have to include foreign earned income for the year, 2021 according to IRS or should I have to get according to India tax guidelines?

 

It is my understanding that my spouse must provide all earnings from 1/1/2021 to 12/31/2021. Am I right?

 

Any further help/insights would be greatly appreciated. Thank you,

 
India Tax:
The assessment year (AY) is the year that comes after the FY. This is the time in which the income earned during FY is assessed and taxed. Both FY and AY start on 1 April and end on 31 March. For instance, for FY 2020-21, the assessment year is AY 2021-22.
 
India AY and FY for recent years
 
Period Financial Year Assessment Year
1 April2019 to 31 March 20202019-202020-21
1 April 2018 to 31 March 20192018-192019-20
1 April 2017 to 31 March 20182017-182018-19
1 April 2016 to 31 March 20172016-172017-18

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1 Best answer
Expert Alumni
Jan 25, 2022 3:29:12 PM

Yes, the US tax year runs on the calendar year so you would include all of your spouse's income from calendar 2021 as well as deductions for any foreign taxes paid by your spouse during calendar 2021 regardless of what fiscal years the taxes were paid for.

2 Replies
Expert Alumni
Jan 25, 2022 3:29:12 PM

Yes, the US tax year runs on the calendar year so you would include all of your spouse's income from calendar 2021 as well as deductions for any foreign taxes paid by your spouse during calendar 2021 regardless of what fiscal years the taxes were paid for.

Level 2
Jan 25, 2022 3:31:34 PM

Hi Robert,

Thank you so much for your advice!