As a U.S. citizen, how do taxes work?

Asked 18-May-2022
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  • Regardless of where they live, all US citizens and green card holders must file their tax returns in the United States on their worldwide income. Unless a treaty, statutory exception, or foreign tax credit applies to reduce their US tax burden to zero, they must pay taxes on such overseas income.
  • For tax purposes, you are considered as if you were a US citizen or a green card holder living outside the country. As a result, you must pay taxes in the United States on your worldwide earnings. At the same time, if you spend more than 182 days in India during a fiscal year, you are considered an Indian resident.


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