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