U.S. tax for Indian-Americans, done with both countries in mind.
Green card holders, H-1B families and U.S. citizens with ties to India face rules most preparers miss: Indian income, PFICs, FBAR, Form 8938, gifts from parents and the tax treaty. We handle the whole picture.
Once you're a U.S. tax resident, the IRS taxes worldwide income.
Indian income
NRE and FD interest, rent, dividends and capital gains in India all go on your U.S. return, even when they are tax-free in India.
Indian mutual funds
Usually treated as PFICs, which need Form 8621 and can be taxed harshly. Worth planning before you buy more.
Foreign tax credit
Tax paid in India, including TDS, can usually be credited on Form 1116 so the same income isn't taxed twice. The U.S.–India treaty also matters.
Selling property in India
The gain is reportable in the U.S. We work out the cost basis, exchange rates and the credit for Indian tax.
The forms that carry the penalties.
- FBAR (FinCEN 114) when foreign accounts top $10,000 combined at any point
- Form 8938 above $50,000 at year-end or $75,000 at any time for single filers living in the U.S. ($100,000 / $150,000 for joint filers)
- Form 3520 when gifts or inheritances from foreign individuals exceed $100,000 in a year; the gift itself is not taxed
- Form 8621 for PFIC holdings such as Indian mutual funds
Questions we get every week
Is NRE interest taxable in the U.S.?
Are Indian mutual funds a problem for U.S. taxpayers?
My parents sent me money from India. Do I pay tax on it?
Will I be taxed twice on Indian income?
I'm on an H-1B. Am I a U.S. tax resident?
General information, not advice for your situation. Figures checked October 2026.
Income or accounts in India? Let's keep both countries happy.
Call or text (847) 278-7305 or email Tax@taxman365.com.