How to declare the income from home country

[Aeroplane 10]

Hello, 

I am Indian, recently became LPR, I get regular income in India in the form of commission from previous company I worked for. I have been filing for income tax in India till now. How do things change now? Should I stop filing there? Should I include that in USA ( IRS)? 
Where else I can find more and right information?

[TBoneTX 45,304]

Welcome to the forum!  I am moving your thread from the Site Discussion forum to the "Tax & Finances" forum, where similar topics are discussed.  

[Coco8 1,042]

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I have been filing for income tax in India till now. How do things change now?

For US taxes you have to include worldwide income, so you have to report the commissions you are receiving from India.

 

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Should I stop filing there?

That depends on the tax laws in India. You should find out there. If you have to pay taxes in India, you can find out if there is some tax treaty between India and the US so that you don't pay taxes twice (some countries have them).

 

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Should I include that in USA ( IRS)? 

Yes, you have to.
 

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Where else I can find more and right information?

I recommend using Turbo Tax or some other tax preparation system. It will ask you if you have to report income you receive from different sources and it will add it for you to your tax returns. Turbo Tax has a specific question "Did you make any money outside of the US?". There are tax credits for foreign income and stuff, I don't know how they work. Turbo Tax has questions about it. 

 

I'd only advice to talk to someone who prepares taxes if you happen to make quite a good amount of money from these commissions. 

[Redro 4,611]

On 11/24/2021 at 9:48 AM, Aeroplane said:

Hello, 

I am Indian, recently became LPR, I get regular income in India in the form of commission from previous company I worked for. I have been filing for income tax in India till now. How do things change now? Should I stop filing there? Should I include that in USA ( IRS)? 
Where else I can find more and right information?

When did you arrive in the USA? 

How did you become an LPR? 

Will you income from India continue or will it stop now you are in the USA? 

[Merica-n 65]

On 11/23/2021 at 6:48 PM, Aeroplane said:

Where else I can find more and right information?

Turbotax is good advice.  Make sure that you pay close attention to the required disclosures for foreign assets, bank account trusts etc, and make sure you declare everything to the US government and meet FBAR requirements.  The penalties for non-disclosure are extremely steep and nothing to mess with!  People easily gloss over them in the turbotax entry, so make sure you carefully answer the foreign income and asset questions in Turbotax!

 

I'm not familiar with Indian tax law, but generally you need to file with the indian government, and then you are generally eligble to get some credit for any foreign income taxes paid, and you will declare the income again on your USA tax return and hopefully get a credit if you paid any tax.

 

If you have been a "US resident alien" under H1 and met the substantial presence test for many years as many indian citiziens who've been in the waiting line for LPR have been, then you should have been filing your taxes this way for years and this won't really change.