USA Tax Filing from India: A Guide for US Citizens Living Abroad

Tax returns are a crucial part of a citizen’s duty to their country. Understanding the tax filing procedure and the rules is essential for American expats in India. Documents needed, filing dates, and potential tax breaks for American expats in India are all topics we’ll cover here.

Paying US Taxes While Residing in India

Americans residing in India must submit tax returns to the IRS. Filing taxes is a procedure that may be done online, and the IRS website is the preferred method. The Internal Revenue Service (IRS) website contains resources to assist you figure out which tax forms you need to fill out and how to submit them.

The following are some important aspects of US tax filing from India:

Documents Required

When filing taxes as a US citizen living in India, the following documents are required:

  1. W-2 Form: Your company will use this document to detail the money they’ve taken out of your paycheck for taxes. You must submit a separate W-2 form for each employment you have.
  2. Form 1099: A Form 1099 is required if you have income other than from your employment, such as from freelancing or investments.
  3. Foreign Bank Account Report (FBAR): If you have more than $10,000 in a foreign bank account at any time throughout the year, you are required by law to complete an FBAR.
  4. Form 2555: This form is used to apply for the Exclusion of Earned Income from Foreign Sources (FEIE). You may deduct up to $108,700 of your earnings from abroad from your domestic income.
  5. Form 1116: To apply for the Overseas Tax Credit, please fill out this form (FTC). You may deduct the amount of taxes paid to foreign governments on international income from your tax bill in the United States.


American nationals in India have the same April 15th deadline to file their US taxes as their US-based counterparts. Returns must be submitted to the IRS no later than April 15 of the year following the tax year. But, on June 15th, the deadline is automatically extended by two months for US residents residing overseas. Even if you qualify for the extension, you still need to pay any taxes you owe by April 15 to avoid interest and penalties.

Tax Exemptions

Tax breaks are available for Americans residing in India. You may be eligible for a lower amount of tax in the United States thanks to two exemptions: the Foreign Earned Income Exclusion and the Foreign Tax Credit.

Under the FEIE, you may deduct up to $108,700 of your earned income from abroad from your taxable income. One of two requirements, bona fide residency or physical presence, must be met to be eligible for the FEIE. For the purposes of the bona fide residence test, a whole tax year spent in a foreign nation is required. To pass the physical presence requirement, you must spend at least 330 full days in a foreign country during a 12-month period.

Using the Foreign Tax Credit, you may deduct the amount of taxes paid to a foreign country from your US tax bill. Form 1116 must be submitted in order to get the FTC.


Americans residing in India must submit tax returns to the IRS. It is also required for USA company registration. It is possible to submit taxes online, and doing so via the IRS website is strongly encouraged. There are certain forms that must be filled out and dates that must be reached in order to proceed with the procedure. Exemptions from US taxes, such as the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC), may be available to US residents residing in India.

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