Indians working on H1B — how do you manage money back home?

Adobe / Eng
shan💋

Go to company page Adobe Eng

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shan💋
Jan 5, 2019 14 Comments

Do you have a bank account back in India? Do you declare the foreign accounts during the time of filing taxes?

Also do you earn foreign income, do you include it in your tax returns and take a credit for tax paid on that income?

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TOP 14 Comments
  • Cloudera / Eng
    80t3n9

    Go to company page Cloudera Eng

    80t3n9
    Answer is yes to all of your questions.

    You need to open NRE and NRO accounts in India. Transfer money to NRE account and then to NRO.
    You need to declare these accounts if you have $10k or more balance (search FBAR)
    During tax filing show all interest earned through these accounts.

    I have foreign income through rental properties in India. Which you pay tax in India first then show all details in US tax filing. Yes, you get credit on taxes paid as well as home mortgage.
    Jan 5, 2019 4
    • Cloudera / Eng
      80t3n9

      Go to company page Cloudera Eng

      80t3n9
      NRIs not allowed to use domestic account (if you want to be on right side of the law) . So your choice is to use NRO account for transactions within India.
      You should only transfer money to NRE (legal and helps is tracing)

      Yes. I am getting deductions on Indian home mortgage in US. Think it this way, I pay income tax on rental and interest income in India (to US govt), so they are also letting you take those deductions here.
      Jan 5, 2019
    • Amazon / Eng
      SDMConvert

      Go to company page Amazon Eng

      SDMConvert
      Ah yes. I don't have transactions in India so I haven't needed the NRO account.
      Jan 6, 2019
  • Flagged by the community.

  • Amazon
    zzpozz

    Go to company page Amazon

    zzpozz
    All my investments are in the US.I don’t see the point in investing in India due to currency fluctuations
    Jan 5, 2019 1
    • RackWare
      Dreamlight

      RackWare

      Dreamlight
      Where do you invest in?
      Jan 5, 2019
  • Cisco
    muew

    Go to company page Cisco

    muew
    If you have more than 10K USD you just need to file fbar and If there is any interest income you need to declare that. If you have more than 100k worth of funds then you need to do fatca declaration on form 8938 for bank accounts and 8621 for mutual funds.
    Feb 23, 2020 0
  • Google
    engg1

    Go to company page Google

    engg1
    Yes NRE, NRO account, Fbar filing, pay 1099 reported taxes in US, rest in India.
    Jan 5, 2019 0