For people relocating from India to the United States
Moving to the US From India: Your First US Tax Year
Moving from India to the US changes your tax position in stages. This guide covers when US residency starts, the dual-status first year, the treaty tie-breaker and what happens to accounts you keep in India.
Quick answer
When does someone moving from India start paying US tax on worldwide income?
From the residency starting date: the first day in the US in a year you meet the substantial presence test, or the first day as a permanent resident under the green card test (IRS Pub 519). Before that you are a nonresident, so the first year is usually dual-status. If you are also resident in India, Article 4 (Residence) of the treaty decides which country you are resident in for treaty purposes.
At a glance
- When you become US resident
- Green card test or substantial presence test (Code section 7701(b))
- First year
- Usually dual-status: nonresident, then resident
- Treaty tie-breaker
- Article 4 (Residence)
- Social security agreement
- None on the SSA list
- Accounts in India
- FBAR, Form 8938 and PFIC rules can apply once resident
The two US residency tests
| Test | You are a US tax resident if | Source |
|---|---|---|
| Green card | You hold lawful permanent resident status at any time during the calendar year | Pub 519 |
| Substantial presence | 31 days this year and 183 weighted days over 3 years (all of this year, one third of last year, one sixth of the year before) | Pub 519 |
These come from Code section 7701(b). A work visa, a student visa or a move for family from India all go through the same two tests; some visa holders can exclude days. Try the calculator.
The treaty tie-breaker
Article 4 (Residence) of the treaty has the tie-breaker for someone resident in both countries: it looks first at where you have a permanent home available, then at the further tests the article lists, in the order it sets them.
| Point | What it means |
|---|---|
| Who uses it | People resident in both India and the US under each country's own rules, typically in the year of the move |
| How it is claimed | Form 8833 with the US return, under Treas. Reg. section 301.7701(b)-7 (IRS) |
| Risk for green card holders | Long-term residents may be treated as expatriated under section 877A |
The first US return after India
The first US return after leaving India is rarely a normal one.
| Situation | What applies |
|---|---|
| Arrived mid-year and passed a test | Dual-status year: nonresident before the residency starting date, resident after it |
| Arrived late and passed neither test | Nonresident for the year, unless the first-year choice applies (31 consecutive days and 75% presence, plus the substantial presence test next year) |
| Married to someone still in India | Special rules let some couples choose to file as residents for the whole year |
Source: IRS Pub 519. See also first-year green card tax.
Your accounts back home
Once you are a US resident, bank, pension and investment accounts you keep in India can bring the FBAR and Form 8938, and funds held there are often treated as PFICs (Form 8621, IRS). See FBAR and FATCA and Form 8938 for who files and the thresholds.
Treaty and law references
Treaty
- The IRS lists the 1989 income tax treaty, signed September 12, 1989. General effective date (IRS Table 3): treaty Jan. 1, 1991 (IRS treaty documents for India; treaty text; IRS Table 3).
- Residence and tie-breaker: Article 4 (Residence).
- Article 19 (Remuneration and Pensions in Respect of Government Service) and Article 20 (Private Pensions, Annuities, Alimony and Child Support), pensions.
- Article 25 (Relief From Double Taxation), relief from double taxation.
- Article 16 (Dependent Personal Services), employment income.
US law
- US residency tests and starting dates: Code section 7701(b) (IRS Pub 519).
- Treaty residence for dual residents: Treas. Reg. section 301.7701(b)-7, Form 8833 and section 6114; long-term residents: section 877A (IRS Form 8833).
- Social security agreements: SSA list.
The rules of India on leaving the country also apply; check them with a local adviser.
How we help
Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares the first-year dual-status return, treaty disclosures and the reporting for accounts left in India. Every engagement starts with a written quote after we review your dates and income. Also see Form 1040-NR.
Moving from other countries
All countries: moving to the US, by country. From Canada: moving from Canada to the US.
- The Netherlands
- Turkey
- Romania
- China
- The United Kingdom
- Germany
- South Africa
- Australia
- Italy
- Spain
- France
- Mexico
- The Philippines
- Poland
- Portugal
- Israel
- Ireland
- Switzerland
- Sweden
- Austria
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- Denmark
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- New Zealand
- Japan
- South Korea
- Thailand
- Chile
- The Czech Republic
- Finland
- Iceland
- Estonia
- Latvia
- Lithuania
- Slovakia
- Slovenia
- Indonesia
- Ukraine
- Egypt
- Bangladesh
- Morocco
- Sri Lanka
- Bulgaria
- Cyprus
- Malta
Common questions
When do I become a US tax resident after moving from India?
When you meet the green card test or the substantial presence test (31 days this year and 183 weighted days over three years). Your residency starting date is generally your first day in the US that year, or your first day as a permanent resident.
What if I am resident in both India and the US?
Article 4 (Residence) of the treaty breaks the tie, starting with where you have a permanent home. Claiming treaty residence in India on a US return needs Form 8833.
Do I report my accounts in India after moving to the US?
Once you are a US resident, yes: the FBAR when foreign accounts total more than US$10,000, Form 8938 above higher thresholds, and PFIC rules for many foreign funds.
Is there a US social security agreement with India?
No, India is not on the SSA list of agreement countries.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- IRS: Publication 519, U.S. Tax Guide for Aliens
- IRS: Form 8833
- SSA: U.S. International Social Security Agreements
- IRS: About Form 8621 (PFIC)
- IRS: treaty documents for India
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: First-year green card tax, Substantial presence calculator, FBAR and FATCA.
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Pensions and social security from India
There is no US social security agreement with India on the SSA list (SSA), so work in the US is covered by US social security and work credits from India do not combine with US ones. Pensions you bring from India are dealt with in Article 19 (Remuneration and Pensions in Respect of Government Service) and Article 20 (Private Pensions, Annuities, Alimony and Child Support) of the treaty.