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If you are a U.S. citizen or resident alien you must continue to file a U.S. tax return and report all of your worldwide income, no matter where the income is from. You must do this even if you also file an Indian tax return. @pk will give you more details.
I am an Indian Citizen and I was on H1b visa for last 10+ years and visa expired now. No Green card. Sorry forgot to provide this information in the original post. Thanks
@Vijay256 , Namaste ji
Based on your post :
(a) Do you have any assets in the USA ( bank account, house, equities, employer pension plan, 401(k) and/or similar tax advantaged account) ?
(b) Did you the requisite paperwork with the IRS showing that you have left the USA ?
(c) When did you come to the USA with H-1B and when exactly did you depart ? Was this your only US residency ?
I ask for these bits of info because as a long-term resident of US ( usually 10 years or more ) there are some "exit" tax implications.
Very generally please note the following ( I will follow up once I hear back from you :(
1. Till IRS accepts that you are not a resident for tax purposes any more and/or do not have substantial financial connection with the USA, you have to file a return as a resident and be taxed on world income.
2. Assuming that you can show that your connection to India is pre-dominant post your departure ( date TBD ), you will still have to file a US tax return recognizing any US sourced income.
3. Most likely scenario ( assuming that that is soi when you answer my question s ) for your 2024 would be dual status filer ---- Form 1040 showing all your world income till the day of departure ( note that you would have to use itemized deduction ) and form 1040-NR for the rest of the year and recognizing ONLY US sourced income.
Does this make sense ? I will circle back once I hear from you --yes ?
Namaste ji
pk
Thanks for the response.
(a) Do you have any assets in the USA ( bank account, house, equities, employer pension plan, 401(k) and/or similar tax advantaged account) ?
i have couple of bank accounts (checking - No Interests) with some emergency fund around 15K if needed for paying any taxes owed and refund purposes. I don't have any other equities, pension, house, or 401k or any other accounts
(b) Did you the requisite paperwork with the IRS showing that you have left the USA ?
No This is the first time hearing about it
(c) When did you come to the USA with H-1B and when exactly did you depart ? Was this your only US residency ?
I came to US in June 2008 and departed on August 2024. was on H1b all these years. yes this is my only US residency
Thanks
@Vijay256 thank you for the information you have provided. Rather than my own writing a response, I would very strongly recommend the following page from the IRS:-->
Departing alien clearance (Sailing Permit) | Internal Revenue Service (irs.gov)
Of course if you have more questions on this , please feel welcome to add to this thread or you can PM me and I will do my best to help.
Also for 2024 filing, you should be able to do this on TurboTax -- for the 1040 portion . But for the 1040-NR portion ( especially if you have had no US income post your departure from the USA ), you could download the form 1040-NR -- it is a fillable pdf -- , print sign date and mail-in along with the 1040 form. You put the 1040 first , write : " DUAL STATUS FILER " on the first page of the 1040, attach the 1040-NR behind this and mail this whole package using Fed-Ex or similar service with delivery tracking. The address to file the return is shown at the IRS 1040 filing page.
Note that you may also have to file a return for the State where you resided while working in 2024.
Does this help ? If you need more support , feel free to add to this thread and/or PM me.
Namaste ji
pk
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