Updated 29 September 2026 · General information for people with US–India tax connections
NRI and US nonresident alien are not interchangeable terms. Being described as a non-resident Indian does not, by itself, determine your US tax residency or which US return you should file. Assess each country’s rules separately, then consider any relevant treaty provisions.
1. Determine your US tax residency first
For a person who is not a US citizen, the green card test and substantial presence test are key starting points. Exceptions, treaty positions, elections and part-year circumstances can affect the result. Immigration status and tax residency are different classifications. See IRS Topic 851 and the IRS visa-status explanation.
The substantial presence test generally requires at least 31 days of US presence in the current calendar year and a weighted total of at least 183 days across three years. Count all qualifying days in the current year, one-third of those in the preceding year and one-sixth from the year before that. Certain days can be excluded and exceptions may apply; a simple total of all travel days is not always sufficient. Use the IRS substantial presence guidance for the rules.
2. Match the income reporting to your status
US resident aliens are generally taxed on worldwide income, like US citizens. Nonresident-alien taxation generally focuses on US-source income and income effectively connected with a US trade or business, with exceptions. A move year can involve dual-status treatment. Review IRS Publication 519 for the applicable year before selecting forms or deciding which income to report.
Bring records of Indian employment, bank interest, investments, rental property and business interests to the review. Do not assume income or an account is exempt from US reporting just because it receives favorable treatment in India.
3. Review treaty and foreign-tax-credit questions separately
The US–India treaty does not automatically eliminate tax or filing requirements. Eligibility depends on the income, residency and treaty article; saving-clause rules and exceptions can matter. The official treaty documents are the starting reference.
Foreign tax credits may help relieve double taxation when the relevant conditions and limitations are met. Taxes paid abroad are not automatically creditable in full. Keep proof of foreign income and tax payments and review the IRS foreign-tax-credit guidance.
4. Check FBAR and Form 8938 independently
FBAR (FinCEN Form 114) and Form 8938 have different coverage, thresholds and filing procedures. You may need one, both or neither depending on your facts. Filing one does not replace the other. See the IRS comparison of the two requirements.
What to prepare for your tax review
- Relevant prior US and Indian returns and any tax notices.
- Travel dates, immigration history and dates you moved or changed status.
- Employment, rental, investment and business-income records.
- Foreign-account and asset information requested for your case.
- Evidence of taxes withheld or paid in each country.
State tax obligations also need a separate assessment. Provide the states where you lived, worked or earned income. The document list and final return scope depend on your circumstances.
US–India filing support from Bluewings Tax
Our US–India cross-border tax service starts with assessing the countries, years and forms involved. Basic US federal filing starts at $79 and each state return at $89, in USD. These are starting prices, not an all-inclusive cross-border quote. Final fees depend on documents and complexity; FBAR and FATCA services are excluded from discounts.
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This guide provides general information rather than a determination of your residency, treaty eligibility or filing obligations. Use the rules and forms for the tax year concerned and have your circumstances assessed before filing.