1

I have an opportunity to work in the US for a period of 1-2 year.

as I have gone through the link, it suggest I don't have to pay any taxes in India as it is already included in federal tax.

I am wondering, how much tax do i have to pay (federal+ state), if I will be working in Wisconsin and say my annual remuneration be $60000.

2

Tax liability in US: You would need to determine if you are a resident alien or non resident alien. Resident alien are taxed normally as per US citizens. For the annual remuneration you have quoted it would be in the range of 25%. Refer http://www.moneychimp.com/features/tax_brackets.htm

To determine if you are resident alien or non resident alien, you need to be present for certain period in US. There is also an exemption even if you meet this you can still be treated as non resident alien if your tax home is outside US [India in this case] Refer to the link for details to determine your category, the durations are for number of days in financial year, hence it matters when you are in US and the exact durations. http://www.irs.gov/taxtopics/tc851.html

Also note that if you are assessed as resident alien, even the income from India will be taxed in US unless you declare there is no income in India.

Tax liability in India: The tax liability in India would be depending on your NRI status. This again is tied to the financial year and the number of days you are in country. While the year you are going out of India you need to be away for atleast 183 days for you be considred are NRI. So if you are treated as Indian resident, you would have to pay tax in India on entire income.

In the worst case, depending on the period you travel and the dates you travel, you could get classified as citizen in US as well as India and have to pay tax at both places.

India and US do not have a dual tax avoidance treaty for individuals. Its there for certain category like small business and certain professions like teacher, research etc.

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  • I am unable to correct the "assed" to "assessed" in para 3 .. the edit is too short – Shreyas Murali Apr 20 '17 at 4:44
  • @ShreyasMurali Thanks for the note. Corrected the typo. – Dheer Apr 20 '17 at 5:04