Part year resIdent

[sa_garg]

1. I came to USA on May 25, 2022 with my wife on L1 visa from India. Can I file "Married File Jointly" for the full year rather than Dual Year Return for the purpose of IRS?

2. Where do I show my India salary income prior to coming to USA for 2022. I have no India salary income after coming to USA. I want to take Foreign Tax Credit for the taxes paid on Indian salary

2. I am in New York State. If I file "Married File Jointly" for the full year for IRS; Can I  take Part year resident option for New York

[RSUMan]

1.  If you were married on December 31, 2022, you should file Married Filing Jointly.

2.  The US taxes worldwide income but I would do more research, I am not sure that your income earned in your foreign country before the visa was issued is reportable on first US tax return.

3.  In truth and in fact, you are a New York part year resident and should file in that manner.  Here again, your India salary has no connection with the state of New York and do not believe the State of New York has the right to tax that income.

[RSUMan]

IRS Topic No. 851 says as a resident alien, you report worldwide income so you will include the India income and claim the foreign tax credit.

[sa_garg]

Thanks, i.e., very helpful.

1. Yes, I am married on December 31, 2022 with same spouse who came with me from India.

2. My L1 visa was issued on Oct 31, 2021. However, I came for the first time to USA in May 25, 2022. I did not have any stay in USA in 2020, 2021, 2022

[sa_garg]

Ok, I can report my India income and claim Foreign Tax Credit.

1. How do I report my India income -- Combine my India income with USA W2 for the rest of year and report on Form 1040 line 1a or  Do I need to report in on some other form?

2. Is Social Security Tax and Medicare payable on the India income. India company is not a subsidiary of USA company. They just belong to same group of companies head quartered in France

[RSUMan]

Do not combine the Form W-2 and India income.

You enter the Form W-2 in wages and income.

You separately enter the India income in the Foreign Earned Income section.

The India income is not subject to SS tax and Medicare; it is not US self employment income subject to those taxes.

[sa_garg]

Ok, Thanks.

Where will the foreign earned income show up on IRS forms? On which IRS Form, the foreign earned income will show up?

I am going for foreign Tax Credit

[RSUMan]

There is no IRS form for the India income.

Under Less Common Income in the Wages & Income section of TurboTax, you will see Foreign Earned Income and Exclusion.  Enter the income there.  It will flow onto Form 1040.

The Foreign Tax Credit section is under Deductions & Credits.

[sa_garg]

Thanks for your response. I am a New York Part year Tax payer.

1. Do I need to file NYS IT-2 alongwith my NYS return?

2. Do I need to transfer my India salary earning to NYS IT-2? If yes, how do I fill state earning, state tax and state code?

[MarilynG1]

You will file a Part-Year Resident New York State Return, only reporting the income you earned in New York.

The NY State Interview in TurboTax allows you to separate out the NY income for this purpose, so proceed through the interview carefully. 

Here's more info on How to File a Part Year Resident Return in TurboTax

Click this link for details on NY Form IT-203.