Living and working in the U.S. as an Indian expat? Then you know how complex taxes can get. Between navigating U.S. tax laws, reporting Indian income, and understanding international treaties, filing your taxes correctly isn’t just important — it’s essential.
In this blog, we’ll break down why working with a qualified tax professional is not just a good idea, but often the smartest (and safest) choice for Indian expats.
- U.S. Taxes Are Complicated for Expats
Unlike many countries, the U.S. taxes based on residency — not just citizenship. So if you’re in the U.S. on an H1B, L1, or even an F1 visa, you may be considered a resident alien for tax purposes.
Add to that:
- Different filing rules for resident vs non-resident status
- Dual-status tax years (e.g., switching from F1 to H1B)
- Standard deduction eligibility based on treaties
… and you’ve got a real maze.
A tax pro knows how to determine your status accurately and maximize your benefits.
- Global Income Must Be Reported
Indian expats often have:
- Interest from Indian bank accounts
- Rental income from Indian properties
- Mutual fund investments in India
Under U.S. tax law, you must report your worldwide income, even if it’s earned in India. Failure to do so can lead to penalties or audits.
A professional helps you stay compliant while using credits and treaties to avoid double taxation.
- FBAR & FATCA Compliance Is Serious
If you have over $10,000 in foreign accounts (combined), you’re required to file an FBAR (Foreign Bank Account Report). Indian expats commonly overlook this.
Similarly, Form 8938 (FATCA) may be required if you hold significant foreign assets.
Penalties for non-compliance can range from thousands of dollars to criminal charges.
A tax pro ensures you file FBAR/FATCA correctly and on time.
- Missing Deductions & Credits Can Cost You
Indian expats may be eligible for:
- Foreign Tax Credit (FTC)
- Standard Deduction under U.S.-India Tax Treaty
- Education credits (for students and dependents)
- Retirement account deductions
DIY software may not automatically apply these — especially when you’re dealing with international tax scenarios.
A professional looks beyond numbers and finds every deduction you legally qualify for.
- Freelancers, Side-Hustlers & Investors — Extra Caution Needed
If you earn U.S. income through:
- Freelancing platforms (Upwork, Fiverr)
- Stock/crypto investments
- U.S. or India-based businesses
then you need to file differently (often with 1099s or Schedule C). Mistakes here can trigger IRS audits or hefty taxes.
A tax pro structures your income reporting to keep you compliant and tax-efficient.
- Tax Treaties Can Be Tricky
The U.S.-India tax treaty offers benefits like:
- Claiming standard deduction for F1 students
- Avoiding double taxation on income
- Clarifying residency rules for taxation
But interpreting and applying the treaty properly can be complex.
A tax expert understands treaty articles and how to apply them correctly on your return.
- Save Time, Stress & Avoid Costly Mistakes
Filing U.S. taxes as an Indian expat is not something you want to “figure out as you go.” Tax software can be helpful, but it often:
- Misses international details
- Doesn’t ask visa-specific questions
- Can’t interpret treaties
A tax professional saves you time, gives you peace of mind, and reduces your risk of IRS issues.
Contact us: +1 (972)-996-6644
Email us : info@theriwa.com Visit our website : https://theriwa.com/
