Filing of USA Tax Returns for NRIs

If you’re an NRI, Green Card holder, US resident worker, or Indian earning income from the United States, you are most likely required to file US Federal Tax Returns, even if you don’t live in America anymore. With FATCA, FBAR, PFIC, DTAA, and multi-country tax disclosures, compliance can get complicated and mistakes can lead to penalties, audits, blocked refunds, or legal scrutiny.

FinPracto specializes in US tax filings for NRIs and globally mobile Indians – ensuring complete IRS compliance and maximum lawful tax benefits.

Start your US tax filing with an expert – fully remote, no paperwork hassles

Do You Need to File a US Tax Return?

A US tax return may be mandatory if you fall under any of these:

  • You are a US citizen or Green Card holder regardless of where you reside
  • You are an NRI earning US-sourced income (salary, business, dividends, rental, capital gains, etc.)
  • You hold foreign financial assets, including Indian FDs, mutual funds, insurers, or demat accounts
  • You lived or worked in the US during the year under the Substantial Presence Test
  • You own US RSUs / ESOPs / stocks / crypto generating taxable income
  • You receive gifts or assets from foreign trusts or relatives

Even if tax is already paid in India, filing may still be mandatory in the US due to global income reporting requirements.

Income Types Covered in US Return Filing

We assist NRIs and Indian-origin individuals with reporting:

  • Employment / W-2 income
  • Independent contractor & freelance income (1099-NEC / 1099-MISC)
  • Rental income from properties in the US or India
  • RSU, ESOP and stock income
  • Dividends, interest & royalty
  • Capital gains from shares, mutual funds, crypto & ETFs
  • LLC / partnership / K-1 income

Our goal is to avoid double taxation and maximize deductions / credits wherever allowed.

US Tax Filing Deadlines You Must Know

Timely filing prevents interest charges and penalty accumulation.

Category Deadline
Standard filing date April 15
Overseas taxpayers June 15 (automatic extension)
Extended filing October 15 (via Form 4868)

Major US IRS Forms We Help File (Ordered Differently for Uniqueness)

Form What It Covers
FinCEN Form 114 (FBAR) Reporting foreign bank/investment accounts crossing $10,000 aggregate
Form 8621 (PFIC) Indian mutual funds, ETFs, ULIPs categorized as PFICs
Form 8938 (FATCA) Foreign financial assets beyond FATCA reporting thresholds
Form 1040 / 1040-NR US Individual Income Tax Return
Schedule D / Schedule E Capital gains and rental income
Form 3520 / 3520-A Foreign trusts and large cross-border gifts
Form 5471 Ownership in foreign companies / startups
Form 1116 Claiming Foreign Tax Credit (FTC)
Form 8833 Claiming treaty benefits under DTAA

We ensure all schedules and attachments are filed correctly in one seamless process.

Understanding FBAR & FATCA – Most Common Compliance Pitfalls

Requirement Condition Trigger Penalty for Non-Compliance
FBAR Foreign bank/investment balances > $10,000 anytime during year Up to $10,000 per violation
FATCA (Form 8938) Foreign assets > $50,000 (single) / $100,000 (joint) Starting $10,000 + escalations

FinPracto handles both filings with accurate valuation and category mapping.

PFIC Reporting for Indian Mutual Funds (Form 8621)

The IRS treats most Indian mutual funds as PFICs, requiring annual disclosure via Form 8621. Incorrect or missing reporting may lead to:

  • Excessive IRS tax
  • Interest computations
  • Audit triggers

We evaluate the most suitable reporting method for your case:

  • Excess Distribution Method
  • Mark-to-Market Election
  • QEF Method (if available)

Possible IRS Penalties for Missed / Incorrect Filings

  • Late tax return filing → Up to 25% of unpaid tax
  • Incorrect FBAR reporting → $10,000 per account
  • FATCA non-filing → $10,000+ penalties
  • PFIC non-compliance → Tax on deemed income + interest

Our filing process prevents red flags and IRS scrutiny.

Tax Optimization: FTC & India-US DTAA Relief

We help clients avoid double taxation by:

  • Applying the Foreign Tax Credit (FTC) via Form 1116
  • Claiming treaty-based benefits via Form 8833
  • Aligning with India-US DTAA for lower tax rates on interest, dividends, royalties, and capital gains
  • Coordinating India Schedule FA & FSI disclosures where required

You get the highest legal tax benefit with bulletproof compliance.

Who We Support

We serve a wide range of global Indian taxpayers, including:

  • NRIs in the US, UK, Canada, Australia, UAE & Singapore
  • Indian-origin US citizens & Green Card holders
  • H-1B & L-1 professionals and IT consultants
  • International students & dependents with scholarships / stipends
  • Investors earning US or Indian income
  • Returning NRIs and global executives
  • Startup founders and cross-border business owners

Why FinPracto Is the Right Partner

  • Highly experienced cross-border US-India tax experts
  • Deep knowledge of PFIC, FBAR, FATCA, RSU taxation & crypto
  • Dual-country tax planning to increase refund and reduce tax legally
  • 100% remote filing and worldwide support
  • Pricing that is transparent and value-driven

Schedule a tax planning call today – before IRS deadlines catch up.

FAQs

Yes. If you earn income from US sources – such as salary, freelancing, rent, dividends,
capital gains, royalties, or social security benefits – you may be required to file US Federal
and/or State tax returns, irrespective of where you live.

· Form 1040 is filed by US tax residents, including citizens and Green Card holders.
· Form 1040-NR is filed by NRIs who are not US residents but earn income from the US.
FinPracto handles both depending on an individual’s residency status and income.

You must file:

· FBAR (FinCEN Form 114) if your combined foreign bank balance exceeds USD 10,000 anytime during the year.
· FATCA (Form 8938) if your foreign financial assets exceed the prescribed limit.

Non-filing can lead to heavy penalties, so proper reporting is crucial.

Delayed or non-filing can trigger:

· Monetary penalties
· Interest on unpaid tax
· Freezing of refunds
· IRS notices and compliance audits

FinPracto ensures timely submission and risk-free compliance.

ITIN (Individual Taxpayer Identification Number) is required for individuals who must file a US tax
return but do not have a Social Security Number (SSN). NRIs without SSN often need ITIN to file
Form 1040-NR or claim tax refunds.

Yes. The Double Taxation Avoidance Agreement (DTAA) allows you to claim tax relief or tax credit
when the same income is taxed in both India and the US. FinPracto ensures the correct DTAA article
and documentation are used to maximise benefit.

Absolutely. If extra tax was withheld from salary, stocks, dividends, consulting income, or rental
income, filing an accurate US tax return can help recover the excess. FinPracto handles refund claims
and tracking.

Yes. The entire filing and advisory process is handled online from India – document collection,
computation, compliance checks, and filing – without requiring you to coordinate with a US accountant.

Documents vary per case, but generally include:

· Passport & visa copy (if applicable)
· Income and investment statements
· 1099 forms / W-2 forms (if issued)
· Brokerage & bank statements
· Asset & foreign account details for FBAR/FATCA

FinPracto provides a simple checklist after onboarding.

· April 15 → Standard deadline
· June 15 → Automatic extension for taxpayers living abroad
· October 15 → Final deadline with extension

FinPracto ensures filing within applicable timelines to prevent penalties.

Yes. All documents are encrypted and stored securely. No information is ever shared with third parties
without consent.
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