US Taxes: What You Need to Know About Filing, Rules, and Impact on Indians

When we talk about US taxes, the system of federal, state, and local taxes imposed by the United States government on income, property, and transactions. Also known as federal income tax, it applies to anyone earning in the US — including Indians living abroad, those with US-based income, or even NRIs who own rental property or investments there. If you’re an NRI with money in the US, or if you’re an Indian citizen working for a US company, you can’t ignore this. The IRS doesn’t care where you live — if you earn, they want their share.

One big thing people miss: US tax residency, a legal status that determines whether you’re taxed like a US citizen or a foreigner. It’s not about your passport — it’s about how many days you spend in the US. The Substantial Presence Test counts your days over three years. Stay too long, and suddenly you’re taxed on your global income, even if you live in Mumbai. That’s why many NRIs carefully track their days in the US to avoid losing their non-resident status and getting hit with higher taxes on mutual funds, dividends, or even interest from US bank accounts. Then there’s foreign income, money earned outside the US by US citizens or residents. The US taxes this too, but you might get credits for taxes paid in India under the Double Taxation Avoidance Agreement. Still, you have to file Form 1116, report foreign bank accounts (FBAR), and keep records. Most people don’t — and end up with penalties. And don’t assume your Indian salary is safe. If you’re on a US work visa, or if your employer is American, your income is likely subject to US withholding — even if you never set foot in the country.

What you’ll find below are real, practical posts that break down how US taxes touch the lives of Indians — whether you’re an NRI planning to return, someone with US investments, or just trying to understand why your bank asked for a W-8BEN form. These aren’t theory pieces. They’re grounded in what people actually deal with: tax filings, residency traps, investment impacts, and how to avoid costly mistakes. You’ll learn what triggers tax liability, how to use treaties to your advantage, and why a simple savings account in the US can turn into a paperwork nightmare. This isn’t about becoming a tax expert — it’s about knowing enough to protect your money.