This is a non-resident 1040 that is filed in the US only to report incomes arising in the US and not having to report income derived in India or any other country for that matter. Keep in mind US imposes taxes on worldwide income even on deemed residents who are visiting the US and happen to spend more than 183 days. Therefore, it is important to know when you need to file a regular 1040 (resident return) vs a 1040 NR (non-resident return).
There are several scenarios that we come across:
Does the 1040NR require FATCA filings? One of the big issues that drives compliance and taxpayers to seek professional assistance in the US to file returns is FATCA and the penalties associated with not filing them. If one is eligible to file a 1040NR then usual forms under FATCA normally filed with a 1040 resident return are not required with a 1040NR. Filing them is not wrong but is not required.
If you were on H1B and you moved to India? You can very well file a 1040NR for US sources. A close review would have to be made in the year you move to see if you qualify to file a 1040NR or 1040 (per the substantive presence tests) but there are ways you can still qualify either because your employment moved, you are filing as a resident in another country or because you have closer tax ties in an another country. Talk to your advisor because it can make a significant difference in terms of savings on state taxes and potentially even US taxes on foreign sources.
