For Indian professionals working for US-based companies or spending significant time in the States, the IRS compliance requirements can be daunting. Unlike India, the US taxes its citizens and permanent residents on their worldwide income, regardless of where they live.

1. The Substantial Presence Test

You may be considered a US tax resident even without a Green Card if you meet the "Substantial Presence Test." This is calculated based on the number of days you spent in the US over the last three years. Crossing this threshold triggers a requirement to file Form 1040.

2. FBAR and FATCA Compliance

Foreign Bank Account Reporting (FBAR) is required if the aggregate value of your foreign financial accounts exceeds $10,000 at any time during the year. Similarly, Form 8938 (FATCA) is required for higher thresholds of foreign financial assets.

3. Avoid Double Taxation

The US-India Double Taxation Avoidance Agreement (DTAA) provides relief through Foreign Tax Credits. You can often offset the tax paid in India against your US tax liability, but the filing must be handled meticulously to claim these benefits.

How Amvisors Can Help

Our cross-border tax experts specialize in US-India tax treaty optimization. We ensure you stay compliant with both IRS and Income Tax Department rules while minimizing your global tax burden.