US filing basics for Americans in India
Living in India does not terminate your U.S. federal income tax obligations. U.S. citizens, green-card holders, and certain long-term residents are taxed on worldwide income on a citizenship or residency basis, regardless of where the income is earned or where you reside. You generally must file Form 1040 (or 1040-SR) when gross income exceeds the annual IRS filing threshold, typically $15,000 to $30,000 or more depending on filing status, age, and dependency for recent tax years (exact amounts published in IRS Rev. Proc. documents and inflation-adjusted). Even if no tax is ultimately due after credits and exclusions, filing is usually required to claim benefits such as the Foreign Earned Income Exclusion (FEIE) under IRC §911 (up to $130,000 for tax year 2025 per IRS Rev. Proc. 2024-40) or the Foreign Tax Credit (FTC) for taxes paid to India authorities.
US tax treaty with India
The United States has an income tax treaty with India for many common issues, treaty articles must be applied to your facts.
Local considerations in India
The US-India income tax treaty affects the taxation of certain income, and Article 21 carries a well-known benefit for students and trainees. Indian provident funds (EPF/PPF) and many mutual funds raise PFIC and foreign-trust questions for US filers; the Foreign Tax Credit and FEIE are the core tools. FBAR and Form 8938 apply to Indian accounts and assets once thresholds are crossed.
Common services needed by expats in India
Most Americans abroad in India need help with at least one of the following core compliance areas, which frequently interact:
- US expat tax returns, Form 1040 with FEIE, FTC, treaty positions, and any required state returns.
- FBAR reporting, FinCEN Form 114 for foreign financial accounts exceeding $10,000 aggregate at any time during the year.
- Form 8938 (FATCA), IRS disclosure of specified foreign financial assets when thresholds are met.
- Streamlined catch-up filing, For eligible non-willful taxpayers with prior unfiled years.