Got GC last year, filing US income tax- how to report India pension income?

T

tmc

Registered Users (C)
My Mom got GC and came to USA last year Oct 2010.

She does NOT work in the USA.

She receives pension in India - which is below the India tax bracket of ~Rs1.6 lakh. So she does not (never filed) file taxes in India. The pension amount she receives is also below ~$3500 USA dependent income limit (I am going to claim my mother as dependent in my US income tax return).

My question is:
1. Should my mother file a US income tax return? I am assuming YES.
2. Should she report her pension income? I am assuming YES.
3. Should she have to pay tax for that amount? I am guessing NO - but I am not sure how she would report it such that it is not taxed.

Can someone please enlighten on this. Thank you.
 
I am in the same position for a dependent child with income. Pension income from outside the US is taxed for GC holders and USCs. It must be reported on your return as well and counts towards the support requirements where you must provide over 1/2. The tax program that I use makes it very easy.

Be prepared to document your payments on her behalf carefully. Remember that payments of her medical expenses can be used towards the medical deduction of itemized forms. This may be significant when she is here an entire year.

Even if she has no federal tax due, she may have state taxes.
 
Are you saying I need to report my Mom's India pension income in my Tax return???

I think the pension income is tax deducted at source in India. So, technically she has already paid tax in India - although it is zero - since no tax is deducted as it less than the first slab :).

Thanks.
 
tmc said:
Are you saying I need to report my Mom's India pension income in my Tax return???

I think the pension income is tax deducted at source in India. So, technically she has already paid tax in India - although it is zero - since no tax is deducted as it less than the first slab :).

Thanks.
Click to expand...

Yes, you will have to report her Indian income in the US tax return. There is an exemption to foreign income and also credit is given to tax paid in India. Check IRS website.
 
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