Mixed Insurance Banners Health Insurance for Visitors to USA


No announcement yet.

Tax on deferred payment in India

  • Filter
  • Time
  • Show
Clear All
new posts

  • Tax on deferred payment in India

    I got my L1 visa in January 2017. I came once to the US from Mar 8 to Apr 3 - while I was still working for the Indian company. I was transferred to the US company payroll in April 2017, and then moved to the US with family on May 22.
    However, as part of my final settlement with India office, I received my gratuity and final settlement amount on May 30.

    So now, while filing tax in the US, I am not sure if I need to consider the final settlement amount for taxation. The gratuity was paid to me for my 5 years of employment with the Indian company, and the final settlement amount included my variable pay for the year 2016. These payments are for the work prior to March 2017, and I will be paying applicable taxes on these in India. Do I also need to consider them for US taxation?

    Appreciate any help.