Tax :: Top 20 Tips for H1B Tax, NRI Tax filing, Itemised TaxReturn, Desi Tax consultants etc... (Page 1 of 2)

People are acutely aware of their fiscal obligation towards the Government, if only for the lure of'refunds' that may be due to them. Every year IRS embarks on a major PR campaign to educate andinform the public of their fiscal responsibility.

Though many in America wait for the April 15th deadline for filing taxes, some - especially for thosea big refund is due - begin the process right in earnest. Uncle Sam's reach extends to everyone livingand making money in the US, including Expatriates, Non Resident Indians (NRIs), and those onstudent, temporary and H1 Visas. Â For residents and expatriates, one has to account for the 'globalincome' while filing taxes. Regular tax practitioners are overwhelmed by intricacies of tax filingwhen it comes to credits, accounting for global income etc.

The big question that I get asked often: if I am an Expat in the US with additional income and assetsin India, can I do my US taxes myself using tax software or online tools alone, or should I use a taxconsultant? This question is especially relevant in current tough economic times when every pennycounts. Here are the top 15 tips and facts to keep in mind:

1. If you are a U.S. citizen or resident, you are generally subject to U.S. income tax on yourworldwide earnings. Those on temporary work visas including H1, L1 and Student visas are alsosubject to U.S Taxes.

2. U.S. Tax codes are complex. All the more if you want to ensure you take all deductions includingcredit for foreign taxes paid

3. Most Free Tax software packages cater to "simple" tax returns, like for those filing a 1040EZ. Taxpackage vendors make money on add-on's: State tax package, international, mortgage and otherdeductions etc etc

4. Good tax consultants are expensive though some are worth the money they charge.

5. If you are planning to hire a tax consultant, do it as early as possible. Between mid-March andApril, even the best consultants may be swamped. They will not be able to dedicate as much time foreach individual client

6. Not all tax consultants know of the intricacies of international income taxes.

7. Expats working for foreign companies, Softwareservice firms, especially those employing a lot of H1Visa holders and expats provision for lot of tax benefitsand avoidance measures that they and employees canavail.

8. Making sure an individual foreign employee of availsof all these benefits is an art more than a precisescience. Not all tax consultants are aware of theseprovisions.

9. If you had income in a foreign country you may havepaid or been charged foreign income tax. The foreignincome tax is normally withheld in the source countryfrom payments and distributions. Make sure you arenot a victim of double taxation.

10. Expat chat-groups and discussion forums and blogsmay have helpful tips. However, some of those can bemisleading since each individual's situation is different.Use such references with caution.

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