U.S. citizens and permanent residents who earn money in India must report all of their earnings to the IRS. Everything you earn, whether from a work, investments, or otherwise. In the United States, the annual tax return filing date is April 15th. However, you may be eligible for a tax filing extension if you are a resident of India.
Who Must File Taxes in the United States from India?
Those who live in India yet owe taxes to the United States include:
- U.S. nationals
- Locals in the USA
- Those who are legal permanent residents
- Individuals who have spent more than 183 consecutive days in the United States
Which Taxes Must I File?
The following tax forms are required for US citizens and permanent residents who are currently residing in India.
- Form 1040, Individual Income Tax Return
- Form FBAR (Foreign Bank Account Report)
- Foreign Account Tax Compliance Act Report
How Do I File US Taxes if I’m Living in India?
US tax filing from India may be done in a number different ways:
- Using the IRS website, you may submit your taxes independently.
- A tax preparer is someone you pay to do your tax return for you.
- To file your taxes, you may utilize a computer application designed for that purpose.
When Must I File My U.S. Tax Return If I Am Currently Residing in India?
In the United States, the annual tax return filing date is April 15th. However, you may be eligible for a tax filing extension if you are a resident of India. You may get an extension by submitting IRS Form 4868.
What Are the Repercussions of Failing to File U.S. Taxes if Residing in India?
Among the penalties you may face if you fail to submit your US taxes from India are the following:
- If you miss the tax filing date, you may have to pay a late filing penalty. There is a sliding scale of penalties based on how long you wait to submit your taxes.
- A failure to pay penalty may be assessed if tax payments are not made by the due date. If you are late in paying your taxes, the penalty will increase in proportion to the amount you owe.
- If you fail to pay your taxes by the due date, interest will be added to the total amount owed. The Internal Revenue Service sets the interest rate.
Additional information to focus on
- Numerous IRS tools exist to facilitate Indian taxpayers’ participation in the tax filing process. The IRS website is a good place to look for these materials.
- Taxpayers in India may hire one of many firms to help them file their returns. If you need assistance getting your taxes in on time, one of these businesses may help.
- From India, you may take use of a variety of tax preparation solutions. Using one of these applications, completing your tax return will be quicker and less cumbersome.
Conclusion
It might be difficult to file US taxes from India. However, you may get assistance filing your taxes on time and accurately from a variety of sources. Talk to a tax expert if you need help figuring out USA company registration and how to file your US taxes from India.