I remember staring at my laptop in San Jose one April evening in 2015.
Two browser tabs open.
One had TurboTax loaded with my W2. The other had the Income Tax India portal with Form 16 from my Mumbai rental property.
I thought I was being smart. Filing both my US and Indian taxes at once.
Then reality hit me like a ton of bricks.
TurboTax had no clue what to do with my Indian rental income. H&R Block was equally clueless.
That is when I learned the hard truth about US tax software and Indian tax filing.
Let me save you the headache I went through.
The Reality Check You Need to Hear
Here is the thing.
Neither H&R Block nor TurboTax can file your Indian income tax returns.
Not directly. Not even close.
These are US tax preparation platforms. Built for US tax code. Designed for IRS forms.
The Indian Income Tax Department has its own system. Its own forms. Its own portal.
You cannot use American tax software to file Indian ITR.
I wish someone had told me this clearly back in 2015. Would have saved me three hours of frustration.
“Mixing US and Indian tax filing is like trying to use a Phillips screwdriver on a flathead screw. Wrong tool for the job.”
But here is where it gets interesting.
You still need to report your Indian income on your US taxes. That is where H&R Block and TurboTax come in.
Let me break down what you actually need.
What US Based NRIs Actually Need
If you are an NRI living in the US with income in both countries, you have two separate tax filing obligations.
In the United States: You must report your worldwide income to the IRS. That includes salary, rental income from India, interest from NRE accounts, capital gains from Indian stocks, everything.
In India: You must file ITR if your Indian income exceeds the basic exemption limit (₹2.5 lakhs for most people, ₹3 lakhs for senior citizens in FY 2023-24).
These are two completely different processes.
Two different systems.
Two different deadlines.
I learned this the hard way when I got a notice from the Income Tax Department in 2016. I had filed my US taxes perfectly. But I had missed filing my Indian ITR for rental income.
The penalty was ₹5,000 plus interest.
That stung.
If you want to understand the complete tax picture, read my guide on Indian tax rules for NRIs with foreign income.
H&R Block vs TurboTax for US Tax Filing
Since we are talking about US based NRIs, let me first compare these two for your US tax filing needs.
Both can handle reporting your Indian income on US returns. But which one does it better?
| Feature | H&R Block | TurboTax |
|---|---|---|
| Foreign Income Support | Good for FEIE, Foreign Tax Credit | Excellent guidance for international income |
| Cost (Deluxe/Premier) | $55 to $90 + $37 per state | $69 to $129 + $49 per state |
| FBAR Guidance | Basic guidance included | Step by step FBAR help |
| In Person Support | 10,000+ offices nationwide | Limited in person options |
| NRI Specific Features | Generic foreign income sections | Better explanations for treaty benefits |
| Ease of Use | Simpler interface | More hand holding |
I used H&R Block for my first three years in the US (2012 to 2014). It was straightforward. Got the job done.
Then I switched to TurboTax in 2015 when my situation got complicated. I had rental income in India, some freelance income, and investments.
TurboTax handled the complexity better. The interview style questions actually made sense.
Here is what matters for NRIs specifically.
TurboTax has better guidance on:
- Foreign Earned Income Exclusion (FEIE)
- Foreign Tax Credit calculations
- Treaty benefits under US India tax treaty
- Reporting foreign bank accounts
H&R Block is better if:
- You want in person help
- Your situation is simple
- You prefer lower cost
But neither of these will file your Indian ITR.
For that, you need completely different tools.
The Indian Tax Filing Reality
Filing ITR in India from the US is a different beast altogether.
You have to use the Income Tax India e-filing portal. That is the only official way.
I have filed Indian returns from San Jose, from my kitchen table at 2 AM because of the time difference.
The portal has improved over the years. But it is still not as smooth as TurboTax.
Here is what you need to file Indian ITR:
✅ PAN card (mandatory)
✅ Form 16 or Form 16A (if you have Indian income sources)
✅ Bank statements from Indian accounts
✅ Capital gains statements from trading accounts
✅ Rental agreements and receipts
✅ Interest certificates from banks
The Indian ITR forms are different based on your income type:
- ITR 1: For salary and one house property
- ITR 2: For NRIs with capital gains, multiple properties, or foreign income
- ITR 3: For business or professional income
Most US based NRIs file ITR 2.
The catch? The Indian tax portal does not integrate with any US platform.
You have to manually enter everything. Calculate everything. Upload PDFs of supporting documents.
For detailed steps, check out my guide on how to file ITR in India after moving back. The process is similar for NRIs abroad.
💡 Tip: File your Indian ITR before July 31st each year. Late filing attracts penalties of ₹5,000 or more.
Tools for Filing Indian Tax Returns
Since H&R Block and TurboTax are out of the picture for Indian filing, what are your options?
| Platform | Best For | Cost | Support |
|---|---|---|---|
| ClearTax | DIY filers with moderate complexity | ₹500 to ₹2,000 | Chat and email support |
| QuickBooks (India) | Simple salaried income | Free to ₹999 | Basic support |
| Chartered Accountant | Complex cases, multiple income sources | ₹5,000 to ₹25,000 | Full service |
I have used all three.
When I was in the US and filing from there, I used ClearTax for two years. It worked well for my rental income and NRE interest.
The platform guides you through the process. It is like TurboTax but for Indian taxes.
You answer questions. It picks the right ITR form. It does calculations. You review and file.
ClearTax costs about ₹1,500 for ITR 2 filing.
Worth it if you want to avoid mistakes.
But here is when you need a CA instead.
If you have:
- Multiple rental properties
- Capital gains from selling property
- Business income in India
- Income from partnerships or firms
- Complex deductions
Then hire a CA. Seriously.
I tried filing a complex return myself in 2016. Made mistakes. Got a notice. Had to hire a CA anyway to fix it.
Lesson learned: Know when to DIY and when to get professional help.
For more on tax mistakes, read about common tax filing mistakes NRIs make.
My Actual Filing Process (When I Was in the US)
Let me walk you through what I did every year from 2012 to 2017.
Step 1: Gather all documents (February to March)
- W2 from employer
- 1099 forms for interest and dividends
- Form 16 from Indian rental property manager
- Bank statements from ICICI NRE account
- Stock trading statements from Zerodha
Step 2: File US taxes first (March to April 10)
- Use TurboTax to file federal and California state returns
- Report Indian rental income and claim Foreign Tax Credit
- File FBAR separately if foreign accounts exceed $10,000
Step 3: File Indian taxes (June to July)
- Calculate tax liability on Indian income
- Use ClearTax to prepare and file ITR 2
- Pay any additional tax due via online challan
- E-verify using Aadhaar OTP
This process took me about 6 to 8 hours total each year.
The US filing was easier. TurboTax made it smooth.
The Indian filing took longer because of manual data entry and slower portal.
Time zone difference was brutal.
The Indian tax portal often had server issues. I would be up at 1 AM Pacific time (afternoon in India) trying to upload documents before the deadline.
Foreign Tax Credit: The Key Connection
Here is where US and Indian tax filing intersect.
You pay taxes in India on your Indian income. Then you report that same income on your US return.
To avoid double taxation, you claim Foreign Tax Credit on Form 1116.
This is where TurboTax shines over H&R Block.
TurboTax walks you through the Foreign Tax Credit calculation step by step. It asks about the taxes you paid in India. It calculates the credit automatically.
H&R Block can do it too. But the interface is clunkier.
I saved about $800 one year by properly claiming Foreign Tax Credit.
That paid for five years of TurboTax subscriptions.
If you are dealing with double taxation, read my detailed guide on how to avoid double taxation as an NRI.
“The US India tax treaty is your friend. But only if you understand how to use it correctly.”
FBAR and FATCA: The Reporting You Cannot Skip
This trips up so many NRIs.
If your foreign bank accounts (NRE, NRO, savings accounts in India) have a combined balance over $10,000 at any point during the year, you must file FBAR.
FBAR is not part of your tax return. It is a separate filing with FinCEN.
Missing FBAR can result in penalties up to $10,000 per year.
I have seen people get penalized for this. It is not worth the risk.
TurboTax reminds you about FBAR. H&R Block does too. But neither files it for you.
You have to file FBAR separately online at fincen.gov.
Takes about 30 minutes. It is free.
Then there is FATCA (Form 8938).
If your foreign assets exceed $50,000 (single) or $100,000 (married), you file Form 8938 with your tax return.
This is different from FBAR. Same accounts, different reporting.
Both TurboTax and H&R Block support Form 8938.
The thresholds are:
| Filing Status | Year End Threshold | Anytime During Year |
|---|---|---|
| Single | $50,000 | $75,000 |
| Married Filing Jointly | $100,000 | $150,000 |
| Living Abroad | $200,000 | $300,000 |
I crossed the FATCA threshold in 2016 when I had rental property value plus NRE deposits.
Filed Form 8938 through TurboTax. No issues.
Cost Comparison: The Full Picture
Let me show you what it actually costs to file both US and Indian taxes properly.
US Tax Filing (TurboTax Premier):
- Federal return: $89
- State return: $49
- Total: $138
Indian Tax Filing (ClearTax ITR 2):
- Filing fee: ₹1,499 (roughly $18)
Total annual cost: $156
Alternative: Hire professionals for both
| Service | US CPA | Indian CA | Total |
|---|---|---|---|
| Simple Return | $300 to $500 | ₹5,000 to ₹8,000 ($60 to $95) | $360 to $595 |
| Complex Return | $800 to $1,500 | ₹15,000 to ₹25,000 ($180 to $300) | $980 to $1,800 |
I did DIY for simple years. Hired professionals when complexity increased.
In 2017, when I was planning to move back to India, I hired both a US CPA and an Indian CA.
Wanted to make sure the transition was clean. No tax surprises.
Cost me $1,200 total. But worth every penny for peace of mind.
When to DIY vs Hire Professionals
Use TurboTax or H&R Block (DIY) if:
- You have W2 salary and simple investments
- One rental property in India
- Basic NRE interest income
- You are comfortable with technology
- Total income under $150,000
Hire a US CPA if:
- You have business income
- Stock options or RSUs vesting
- Multiple rental properties
- Complicated Foreign Tax Credit calculations
- Income over $200,000
Use ClearTax (DIY) if:
- Simple Indian rental income
- NRE/NRO interest below ₹10 lakhs
- No capital gains from property
- You can follow instructions
Hire an Indian CA if:
- Multiple properties
- Selling property in India
- Business or partnership income
- Receiving large gifts or inheritance
- Prior year tax issues or notices
I learned this through trial and error.
Tried to save money by DIY on a complex return. Made mistakes. Paid more in penalties and CA fees to fix it.
Smart is not always about saving money upfront. Smart is about avoiding bigger costs later.
For comprehensive guidance, read my article on planning your finances in India after years abroad.
Common Mistakes I See NRIs Make
After helping hundreds of NRIs through the Back to India community, I see the same mistakes repeatedly.
Mistake 1: Not filing Indian ITR because income seems small
Even if you have just ₹3 lakhs rental income, file ITR. It creates a paper trail. Helps with future loan applications. Avoids notices.
Mistake 2: Missing FBAR deadline
FBAR is due April 15, with automatic extension to October 15. Many people miss it entirely.
Mistake 3: Not claiming Foreign Tax Credit
You paid taxes in India. Claim credit in the US. Do not pay twice.
Mistake 4: Wrong ITR form
US based NRIs should file ITR 2, not ITR 1. ITR 1 is only for residents.
Mistake 5: Not maintaining documentation
Keep bank statements, rent receipts, tax payment challans for at least 7 years. You will need them if questioned.
I made mistakes 1, 2, and 4 in my first few years. Learned from each one.
💡 Tip: Create a dedicated folder (digital or physical) for each tax year. Dump all documents there. Makes filing so much easier.
Software Comparison: Final Verdict
Let me give you the straight answer.
For US tax filing with Indian income:
TurboTax wins. Better international income support. Clearer Foreign Tax Credit guidance. Smoother user experience.
Yes, it costs $20 to $40 more than H&R Block. Worth it for the hand holding.
For Indian tax filing:
Neither H&R Block nor TurboTax works. Use ClearTax for simple returns. Hire a CA for complex situations.
My recommendation:
| Your Situation | US Filing | Indian Filing |
|---|---|---|
| Simple: Salary + one rental | TurboTax Deluxe ($69) | ClearTax (₹1,499) |
| Moderate: Multiple income sources | TurboTax Premier ($89) | ClearTax or CA (₹5,000) |
| Complex: Property sales, business | CPA ($500+) | CA (₹15,000+) |
This is based on my personal experience and helping 500+ NRIs file taxes over the years.
The real answer? It depends on your specific situation.
If you are unsure, post your scenario in our Back to India Facebook group. You will get practical advice from people who have been there.
Use the wisdom of the crowd. That is what community is for.
What I Would Do Today
If I were still in the US right now, filing for tax year 2024, here is exactly what I would do.
January to February: Organize documents. Set up folders for US and Indian paperwork.
March: File US taxes using TurboTax Premier. Report all worldwide income. Claim Foreign Tax Credit for taxes paid in India in 2024.
April: File FBAR online at fincen.gov. Takes 20 minutes. Free.
June: File Indian ITR using ClearTax. Pay any balance due. E-verify immediately.
Total time investment: 8 to 10 hours across 4 months.
Total cost: Roughly $200 for both filings.
Peace of mind: Priceless.
This system worked for me for 5 years. No notices. No penalties. Clean records in both countries.
The Transition Period: Moving Back to India
Here is something most articles miss.
The year you move back to India, your tax situation gets extra messy.
You might be:
- Resident in the US for part of the year
- RNOR in India for part of the year
- Filing part year returns in both countries
That year, hire professionals in both countries. Trust me.
I moved back in August 2017. Filed part year US return. Filed Indian return as RNOR.
My CPA and CA coordinated to ensure proper reporting in both places.
Cost me $1,500 total. Saved me months of stress and potential mistakes.
For detailed guidance, read my comprehensive guide on NRI to RNOR to resident transition.
Resources That Actually Help
Here are the resources I used and still recommend:
US Tax Resources:
- IRS Publication 54: Tax Guide for US Citizens Abroad
- Form 1116 instructions: Foreign Tax Credit
- FinCEN: FBAR filing portal
- TurboTax or H&R Block: Tax preparation
Indian Tax Resources:
- Income Tax India portal: incometax.gov.in
- ClearTax: For guided filing
- RBI FEMA regulations: For understanding NRI banking rules
- Local CA: For complex situations
Community Resources:
- Back to India Facebook Group: Real experiences
- Tax forums on Reddit: r/IndiaInvestments
- My blog: For detailed guides
Bookmark these. You will need them every year.
TLDR Version
The Question: Can H&R Block or TurboTax file Indian taxes for US based NRIs?
The Answer: No. They only handle US tax returns.
For US filing with Indian income:
- TurboTax is better: $89 to $129
- H&R Block works too: $55 to $90
- Both can report Indian income and calculate Foreign Tax Credit
- Neither files Indian ITR
For Indian filing:
- Use ClearTax: ₹1,499 for ITR 2
- Or hire Indian CA: ₹5,000 to ₹25,000
- File separately on Income Tax India portal
- Cannot use US software
Key deadlines:
- US taxes: April 15 (extension to October 15)
- Indian ITR: July 31
- FBAR: April 15 (automatic extension to October 15)
My setup when in the US:
- TurboTax for US filing
- ClearTax for simple Indian returns
- Professionals for complex years
Bottom line: You need separate tools for each country. Do not try to use US software for Indian taxes. File both on time. Claim Foreign Tax Credit to avoid double taxation.
Still confused? Ask in our Facebook community. Hundreds of NRIs file taxes every year and share real experiences.
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