Questions on foreign income (while filing US tax return)


R

RishiX

All,

I have a few questions on my foreign income earned. While filing tax
returns in the Us:-

1. Is it mandatory to report foreign income earned (if I
don't want to claim it as a deduction or credit)?

2. If the tax year period is different, do I have to
calculate the income earned in a specific calendar year and
enter it in the US tax return?

3. And since the tax year is different, I still do not have
a W2 equivalent ftom the foreign country. So how do I submit
proof of the earned income and the tax withheld?

Quick response would be appreciated.
Thanks,
Rishi.
 
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E

effi

RishiX said:
I have a few questions on my foreign income earned. While filing tax
returns in the Us:-

1. Is it mandatory to report foreign income earned (if I
don't want to claim it as a deduction or credit)?

2. If the tax year period is different, do I have to
calculate the income earned in a specific calendar year and
enter it in the US tax return?

3. And since the tax year is different, I still do not have
a W2 equivalent ftom the foreign country. So how do I submit
proof of the earned income and the tax withheld?
not enough information given

is the filer a u.s. citizen? if not, what status requires
the person to file a u.s. income tax return?

seems u.s. citizens are required to report their worldwide
income for federal income tax purposes

seems that to report on other than a calendar year basis as
a cash basis individual taxpayer (which you may be) would
require irs approval

specificity to your last question probably goes beyond the
scope of this group and you may in fact need to hire a
professional to assist you in that regard
 
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B

Bryan Kellar

RishiX said:
I have a few questions on my foreign income earned. While filing tax
returns in the Us:-

1. Is it mandatory to report foreign income earned (if I
don't want to claim it as a deduction or credit)?
If you were in the US the entire year, and your situation is
such that you are taxed as a US resident, then yes, you must
report your worldwide income received during the year. You
will be allowed a credit on your return for any taxes paid
on that income in your home country.

If you just arrived here in 2004, you have a couple of
choices of how to file. You can claim your worldwide income,
as above. Or you can file as a "Dual Status Alien" and
claim only the US income, but you will have to accept some
restrictions as to what deductions and credits you might be
allowed. Sometimes, you need to figure it both ways to know
which choice is more beneficial.
2. If the tax year period is different, do I have to
calculate the income earned in a specific calendar year and
enter it in the US tax return?
Do you mean like the way that India uses a tax year that
ends on 31 March? Yes, you will need to calculate the amount
of income actually received during 2004.
3. And since the tax year is different, I still do not have
a W2 equivalent ftom the foreign country. So how do I submit
proof of the earned income and the tax withheld?
You will not be expected to attach any proof of this income
at the time you file your US tax return. Of course, if the
IRS chooses to request that information (which they
occasionally do) or audit the return, then you will need to
show some proof of income at that time. By then, you should
have everything you need.

Good luck to you!

Bryan
 

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