USA
India
US and India tax returns for NRIs living in the US.
If you live in the US and still have income, accounts or property in India, we prepare your US and Indian returns in one place. Physicians, engineers, green card holders, OCI cardholders and families who have moved here all work with us, from our Buffalo-area offices or entirely online.
How we help
Both sides of your taxes, one firm.
No juggling a preparer in each country and no gaps between them.
India
Indian income tax returns
Your yearly Indian return for income earned in India, filed on India’s April to March year and matched to your US return.
United States
US returns with India income
Your federal and state returns with Indian rent, interest, dividends and capital gains reported correctly, and credit taken for tax paid in India.
Foreign reporting
FBAR and FATCA for NRE and NRO accounts
Indian bank accounts, fixed deposits and investments can carry US reporting requirements with steep penalties. We find what applies and file it.
Investments
Indian mutual funds and shares
Indian mutual funds are often treated harshly under US rules. We report them correctly and help you plan before you invest more.
Property
Property in India
Renting out or selling a home or land in India, with the tax handled in both countries and treaty relief applied.
Notices
Indian tax notices
If the Indian tax department sends a notice, we work with our counterparts in India on the response and any litigation, with your US return in view.
Who this is for
Built a life here, kept ties in India.
- Physicians, engineers and other professionals on an H-1B, L-1 or green card
- US citizens and green card holders of Indian origin with income or assets in India
- OCI cardholders and NRIs with NRE or NRO accounts, fixed deposits or mutual funds
- Anyone who owns, rents out or is selling property in India
- Parents moving from India to live with family in the US
- Families receiving an inheritance from India
Worth knowing
A few things that catch people out.
Two tax years that do not line up
The US tax year runs January to December. India’s runs April to March. Income has to be split and matched across both, or credits land in the wrong year and you can pay twice.
NRE interest is not tax-free in the US
Interest on an NRE account is generally exempt in India for NRIs, but US residents still report it on their US return. It is one of the most common things people miss.
Your first US year is often dual-status
The year you arrive on a work visa can mean a dual-status or first-year choice on your US return. The choice you make can change the tax, and India may treat that year differently.
What to expect
Three steps, at your pace.
Tell us where things are
A short conversation about where you earn income, hold accounts and own property. There is no wrong amount to know at this stage.
We map what has to be filed
Which returns are needed in which country and when they are due, before any work starts.
We prepare and file everything
Your returns in both countries, prepared by one team and explained in plain English.
Common questions
US and India tax questions.
Do NRIs living in the US need to file an Indian tax return?
Often, yes. If you earn income in India, such as rent, interest or gains from selling property or investments, you may need to file an Indian return even as a non-resident. We look at your situation and tell you exactly what is required.
Is interest on my NRE account taxable in the US?
Generally, yes. NRE interest is usually tax-free in India for NRIs, but US residents must report worldwide income, so it belongs on your US return.
Do I have to report my Indian bank accounts to the IRS?
US residents generally must report foreign financial accounts, including NRE and NRO accounts and fixed deposits, once total balances pass certain thresholds. Penalties for missing these reports can be steep.
Will I pay tax twice on the same income in the US and India?
Usually not, when the returns are prepared correctly. Foreign tax credits and the US-India tax treaty are designed to prevent double taxation, but both returns have to line up for that relief to work.
Can you help if I get a notice from the Indian tax department?
Yes. We work with our counterparts in India on the response and any litigation, while keeping your US return consistent.
Do I need to live near Buffalo to work with you?
No. Many clients work with us entirely online from anywhere in the US, and you are welcome at our offices in Orchard Park, West Seneca and East Aurora.
In-house expertise
A CPA who knows Indian tax.
Our in-house CPA is experienced in Indian taxation, so your US and Indian returns are handled by people who understand how they fit together.
Have taxes in Canada and India both? See our US, Canada and India tax services.
Taxes in the US and India?
Book a consultation and we will tell you what has to be filed, where and when. Offices in Orchard Park, West Seneca and East Aurora, or entirely online.
The fine print
Sterling Tax & Accounting, Inc. prepares US and Indian tax returns. We are not attorneys and nothing on this page is legal or immigration advice. Treaty benefits, residency and foreign reporting requirements depend on your specific facts.