"heyram" <anuajay[at]nospam.gmail.com> wrote:

- quote -

I'd suggest putting the US return on extension to August 15
(or even October 15) so that you can complete the Indian tax
return. You can then use Form 1116 to reduce your US tax by
the Indian tax on the same income.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Thanks Byyan and Lanny.
I am citizen of INdia and have a US Green card. I stayed 365
days in US during Year 2004. Overseas income tax return is
always filed after US tax return is filed (IT Filing will
starts atter May, 2005). I am paying taxes on overseas
earning past 5 years and wondered if I can do something to
avoid double taxation.

Not sure if there is any treaty between US and INDIA on
taxation or refunds.

Any help in this matter will be appritiated.

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heyram wrote:

- quote -

You don't say whether you are a US citizen or permanent
resident. Assuming that you are, there are a couple of
possibilities.

You also do not say whether you are living in the other
country of in the US.

If you live or work in the other country long enough to have
to pay tax there, you may qualify for the Foreign Earned
Income Exclusion. If so, use Form 2555 to claim this
exclusion. Doing this will mean you pay tax only to the
other country.

If you spend too much time in the US to qualify for the
exclusion, you shoulc still be able to claim the Foreign Tax
Credit. Within limits, you can take a credit against your
US income tax for taxes paid to the foreign country.

Finally, you should check for a tax treaty between the US
and the other country. If you are a US citizen, this could
be of some benefit. Most likely, such a treaty will help
with the foreign country's tax, not the US but you should
check.

I believe all tax treaties between the US and other
countries contain what is know as the "saving clause." In
effect, this clause says that each country can tax its
citizens and residents as though the treaty did not exist.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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"heyram" <anuajay[at]nospam.gmail.com> wrote:

- quote -

In general, there are usually protections in place that help
you avoid double taxation.

The specific answer to your question will depend on a lot of
factors: Whether you are American or from the other country,
How long you spend overseas, Whether the US has a tax treaty
with that country (and what it says), And other factors.

If you are in the other country 330 out of a 365 day period,
you may be able to exclude some of your income from US
taxation. In most cases, there is a US Foreign Tax Credit
that will usually save you from double taxation. The
options available to you will depend on your situation.

Bryan

--
Bryan Kellar, EA
Oregon Tax Help, Inc. Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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I am paid overseas (part of my salary) and I do file Income
Tax return in that country. My US W2 shows money that I
earned overseas plus regular income. In short I am paying
taxes in US and overseas on the overseas income. Is there
anyway to claim it?

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