Tax season started on January 26, 2026, and the filing deadline is April 15, 2026. Here are the things you need to prepare. Compliance goes beyond simply submitting a return to meet a legal requirement—it helps us safeguard against costly penalties and maximize legitimate tax-saving opportunities. It can also help us build a stronger foundation for long-term financial security. By preparing early and approaching this season strategically, we not only meet our obligations but also protect our wealth across borders.
Key Dates to Remember
- January 26, 2026 – IRS begins accepting 2025 tax returns.
- February 2, 2026 – Deadline for employers and institutions to send W-2s and 1099s.
- April 15, 2026 – Filing deadline (or extension request via Form 4868).
- October 15, 2026 – Extended deadline if you filed for an extension.
What You Need to Prepare
1. Income Documentation
We must report worldwide income to the IRS. That means gathering:
- W-2s from U.S. employers.
- 1099s for freelance, dividends, interest, or gig work.
- Foreign income records (salary, rental income, capital gains in India).
- Investment statements from both U.S. and Indian accounts.
2. Residency & Filing Status
- Apply the Substantial Presence Test to determine U.S. residency for tax purposes.
- Choose the correct filing status (Single, Married Filing Jointly, Head of Household).
- If your spouse lives in India, evaluate whether filing jointly or separately offers better outcomes.
3. Foreign Accounts & Assets
Compliance is critical:
- FBAR (FinCEN Form 114) – Required if foreign bank accounts exceed $10,000 at any point.
- Form 8938 (FATCA) – For reporting specified foreign assets.
- Foreign investments – Mutual funds, stocks, or property must be disclosed if thresholds are met.
4. Deductions & Credits
NRIs often miss opportunities here:
- Retirement contributions – 401(k), IRA, and HSA reduce taxable income.
- Education credits – Expanded in 2026, useful if you or dependents are studying.
- Child Tax Credit & Dependent Care Credit – If applicable, these can significantly lower tax liability.
- Foreign Tax Credit (FTC) – Claim credit for taxes paid in India to avoid double taxation.
- Foreign Earned Income Exclusion (FEIE) – If you qualify, you can exclude a portion of foreign income.
5. Tax Treaty Benefits
The U.S.-India tax treaty provides relief on:
- Dividends
- Royalties
- Pensions
- Certain business profits
Reviewing treaty provisions with a CPA who understands both jurisdictions ensures you don’t pay more than necessary.
New Provisions for 2026
The IRS has introduced adjustments under recent legislation:
- Expanded education credits.
- Updated standard deduction amounts.
- Enhanced digital filing systems for faster refunds.
Filing Strategy for NRIs
Here’s how I recommend approaching tax season:
- Start early – Begin once W-2s and 1099s arrive.
- E-file – Faster, more accurate, and quicker refunds.
- Stay compliant – Report every account and asset, even if dormant.
- Seek expertise – A cross-border tax advisor is invaluable for NRIs.
Common Mistakes to Avoid
- Forgetting to report Indian bank accounts.
- Misclassifying residency status.
- Overlooking treaty benefits.
- Waiting until the last minute, which increases the risk of errors.
My Advice
Be intentional. Learn the rules. Use the tax code to your advantage. Financial freedom isn’t about earning more but also about keeping more, investing wisely, and designing a life of control and security.
Ready to Take the Next Step?
Tax season doesn’t have to feel overwhelming. With the right preparation and guidance, you can turn compliance into opportunity.
If you’d like personalized support, I invite you to book a call with me.