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Old 03-04-2013, 12:45 AM
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Tax on foreign income

Hi,

I came to USA on Feb 2012. Now I am resident alien.

I want to know do I need to pay taxes in USA for following incomes?

(1) Interest given by banks in India ( This is NOT tax free income in India)
(2) Dividend from stock. ( This is tax free income in India)
(3) Gratuity paid my ex-employer.. ( This is tax free income in India)
(4) Employee provident Fund withdrawn ( This is tax free income in India)

Any help will be really appreciated.


Thanks,


Last edited by pratikpv : 03-04-2013 at 12:53 AM.


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Old 03-04-2013, 06:00 AM
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“(1) Interest given by banks in India ( This is NOT tax free income in India)
(2) Dividend from stock. ( This is tax free income in India)”===As a US resident, you are subject to US taxes on your US source and world wide income, in this case your income that you earned in INDIA.As long as rhe aggregate value of all foreign financial accounts exceeded $10K at any time during the calendar year to be reported, then youmust file Form TD F 90-22.1on or before June 30th of the year immediately following the calendar year being reported. However, you can claim your tax that you pay to Indian taxing authority on your US return by fling form 1116 for claiming foreign tax credit.
“(3) Gratuity paid my ex-employer.. ( This is tax free income in India)
(4) Employee provident Fund withdrawn ( This is tax free income in India)”==========I guess it may / may not be taxable in US; you can contact the IRS for more info in detail.



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Old 03-04-2013, 05:34 PM
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Thanks for the reply.



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Old 01-23-2015, 01:19 PM
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Pratik,
I am in same situation for 2014. What did you do finally for PF withdrawal and Gratuity claim?

As per my understanding, PF withdrawal is like, moving fund from PF account to your savings account. I don't think one should pay US tax for that, even if the amount moved to your savings account during the US residence status.

Same should apply to Gratuity claim (which gets credited to your India savings a/c while you are in US with resident status).

But the final settlement pay check gross amount should be taxable in US, which may have credited to your India savings a/c while you are in US.

Let em know your experience.

Thanks,
Ranjith



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Old 03-22-2016, 04:16 PM
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Quote:
Originally Posted by ranjithv4u View Post
Pratik,
I am in same situation for 2014. What did you do finally for PF withdrawal and Gratuity claim?

As per my understanding, PF withdrawal is like, moving fund from PF account to your savings account. I don't think one should pay US tax for that, even if the amount moved to your savings account during the US residence status.

Same should apply to Gratuity claim (which gets credited to your India savings a/c while you are in US with resident status).

But the final settlement pay check gross amount should be taxable in US, which may have credited to your India savings a/c while you are in US.

Let em know your experience.

Thanks,
Ranjith
OK cool; you can contact an IRS international tax agent for more info in detail.



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