Who needs to file?
You need to file US tax return from India if:
- US citizen — every year, regardless of residence
- US Green Card holder — every year, regardless of residence
- US visa holder who met SPT — for that year
- Indian resident with US-source income (US rental, US capital gain, US salary) — file Form 1040-NR
Step 1 — Determine your status
Are you US tax resident or non-resident? Answer drives everything:
- Citizen / GC / SPT met → Form 1040 (worldwide income)
- None of above → Form 1040-NR (US-source only) OR no filing if no US income
Run the SPT calculator in our intake form.
Step 2 — Gather documents
US-side:
- Prior year US tax return
- W-2 (if any US employer)
- 1099 forms (1099-INT, 1099-DIV, 1099-B, 1099-MISC)
- US bank/brokerage statements
- US property records (if any)
- Form 1098 (mortgage interest)
India-side:
- Form 16 (Indian salary)
- Form 26AS (TDS statement)
- Indian bank statements showing interest
- Demat / MF account statements
- Indian property rental records
- Indian capital gain statements
- PPF / EPF / NPS annual statements
- Aadhaar / PAN copies
Personal:
- Passport with US visa stamps
- Travel record (for SPT verification)
Step 3 — Calculate residential status
Use SPT formula if visa holder. Apply DTAA tie-breaker if dual-resident.
Step 4 — Compute worldwide income (if US resident)
Convert all Indian income to USD:
- Salary: yearly average rate
- Interest/dividends: payment-date or year-average (be consistent)
- Capital gains: separate basis and proceeds rates
- Rental: yearly average
Group into US categories: wages, interest, dividends, capital gains, rental, other.
Step 5 — Identify foreign forms required
For each foreign holding, what's the form?
- Foreign bank accounts → FBAR + Form 8938
- Indian mutual funds → Form 8621 (one per fund)
- Indian Pvt Ltd > 10% → Form 5471
- Foreign trust / large gift → Form 3520
- Foreign LLP → Form 8865
Sum compliance requirements before starting.
Step 6 — Choose FEIE vs FTC
If you qualify for FEIE (330+ days abroad or BFRT), model both:
- FEIE: Excludes earned income up to $130K (2025)
- FTC: Credit for Indian tax paid
Pick the lower-tax option. We model in every cross-border return.
Step 7 — Prepare returns
DIY:
- TurboTax Premier or H&R Block (limited cross-border support — risky for FBAR/8938/8621)
- Free File via IRS (limited income)
- Drake or other professional software for complex cases
Professional:
- Cross-border CPA familiar with NRI tax (us)
- Total cost typically $350-$2,000+ depending on complexity
Step 8 — File the return
E-filing:
- Form 1040, 1040-NR, 8938, 8621, 5471 e-file
- FBAR (FinCEN 114) — separate BSA E-Filing portal
- Form 3520 — paper-only currently
Paper filing:
- Mail to IRS Austin (for international returns) or Ogden
- USPS Priority Mail with tracking
Step 9 — Pay tax due
Options for NRIs:
- US bank transfer (if you have US bank account)
- Wire from Indian bank (LRS, more complex)
- IRS Direct Pay (US bank required)
- Credit card via IRS-authorized processors (small fee)
- Pay.gov
If you can't pay full amount, request installment plan (Form 9465) — saves penalties.
Step 10 — Track refund
Refunds:
- If overpaid, IRS issues refund via direct deposit or paper check
- For NRIs without US bank: paper check mailed to Indian address
- Track refund status at irs.gov/refunds
Step 11 — Indian ITR
Run parallel Indian tax filing:
- ITR-2 for NRIs (resident with foreign assets or income)
- Form 67 for FTC against Indian tax (within Indian ITR due date)
- Schedule FA disclosure for foreign assets
We bundle US + Indian ITR for $200 add-on.
Common filing mistakes
- Missing deadlines (April 15 for federal, separate FBAR deadline)
- Wrong residential status determination
- Missing international forms (FBAR, 8938, 8621)
- Using wrong FX rates
- Filing 1040 instead of 1040-NR (or vice versa)
- Not coordinating with Indian ITR
Key deadlines
- April 15: Form 1040 + 1040-NR due
- April 15: FBAR due (auto-extension to October 15)
- June 15: Automatic 2-month extension for those abroad
- October 15: Extended deadline (file Form 4868 by April 15)
- December 15: Final extension possible in some cases
Practical advice
- Start in February — gather documents
- Engage CPA early — late filers pay extra
- Don't ignore foreign forms — biggest penalty area
- Pay on time even if filing late — interest + penalties accumulate
- File even if you owe nothing — penalties for non-filing > non-payment
Explore our complete US Tax Return Guide to understand refunds, filing rules, and IRS procedures for NRIs.