Foreign income on F1-H1b transition

[yashK]

Hello,

I shifted my visa from F1 visa to H1b visa last year on October 1 2019. Before Oct1, I was on my first 5 years of F1 student visa. I was on H1b only for 90 days last year. I had some small interest (less than 100$ ) in my Indian NRE account. I think since I am filling as a NON Resident Alien, I should not show that  income in my tax filing this year. Do i need to show the interest of entire year from Indian account or only of time I was on H1b or I dont need to show the interest at all .

Thanks in Advance

[pk · Accepted solution]

@yashK , based on your post you are a Non-Resident Alien for the year 2019 --I am assuming here that you came into the country on F-1  in 2015  ( please confirm this )-- therefore you would be exempt from counting days present till the end of the calendar year 2019.  The H-1B adjust of status  starts your days present counting from the day of  adjustment of status.  Thus you would still not have met the substantial  presence test  till sometime in  Feb/March of 2020.    As NRA , you are taxed  by the USA ONLY on your USA sourced  / connected income.   Your Indian income is immune  from US taxation till you pass the substantial presence test in 2020.

Does this help?

Namaste ji

[yashK]

Yes. You are right @pk . I came in 2015. Thank you so so much. You are awesome. I was very confused about this.