FAQ related to income tax for new Indian professionals while in the US

Is the income I earn in the US, taxable both in the US and in India? How do I pay my taxes in the US?

Income you earn in the US will be taxable only in the US. This income will not be taxed in India. Filing your Income Tax returns in the USA is simpler when compared to India. Tax forms are simple and easy to fill. One need not know all the Taxation Laws to file returns. In the USA there are two main types of taxes - FEDERAL TAX, which is something like our Income Tax, and the other is the STATE TAX. Some cities and counties also have a local tax, which is usually deducted by your employer.

The last date of filing your tax returns is 15th of April and the accounting year is from 1st January to 31st December. Different states have different tax structures. On an average it is 28-30%. If you are married or have children, etc, you might get a refund (on the taxes that have already been deducted from your pay). Regardless of where you work, your tax is calculated on the state in which your H1 holder (your employer) is head quartered.

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