Year-End Tax Planning Checklist for NRIs in the US

For Non-Resident Indians (NRIs) living and working in the United States, year-end is a useful time to review financial records, check tax-related documents and identify information that may be needed for the upcoming tax filing season. Your financial activities may extend across both countries, involving a US salary, Indian bank accounts, investments, retirement accounts or other financial assets.

Waiting until tax season to collect these records can make it harder to identify missing statements, reconcile income or establish the details of foreign financial accounts. A review before December 31, 2026, gives you an opportunity to organize the records relating to the 2026 tax year and prepare for filing your 2026 US tax return in 2027.

This checklist focuses on tax record preparation and filing readiness. It does not replace detailed guidance on salary taxation, RSUs, capital gains, foreign tax credits or foreign account reporting. Instead, it explains which records NRIs should review and keep ready, with links to more detailed resources where necessary.

Why Should NRIs Review Their Tax Records Before Year-End?

An NRI's financial records may be spread across US employers, banks, brokerage platforms, retirement providers and Indian financial institutions. Collecting information from these different sources can take time, particularly when statements are issued in different formats or currencies.

A year-end review can help you:

• Identify missing income statements and financial records.
• Check whether your personal or tax residency circumstances changed during 2026.
• Organize information about income and financial accounts in India.
• Keep track of foreign account balances and ownership details.
• Collect investment and retirement account statements.
• Locate previous tax returns, payment confirmations and IRS correspondence.
• Prepare a consolidated record folder for the 2027 filing season.

For example, an Indian professional working in California may receive a Form W-2 from a US employer, earn interest from an Indian bank account and hold investments through an Indian brokerage account. Reviewing these records together can help identify information that may need to be considered when preparing the US tax return.

The purpose is to establish a complete record of the year's financial activity, not to repeat tax calculations or make investment decisions at year-end.

Confirm Your US Tax Residency and Filing Status

Before organizing your tax documents, review your US tax residency status for 2026. Immigration status, Indian residential status and US tax residency are not interchangeable.

For US federal income tax purposes, a non-US citizen may generally be treated as a resident alien if they meet the Green Card Test or Substantial Presence Test. Certain elections, exceptions and tax treaty provisions may also affect the result. The applicable rules should be assessed based on your individual circumstances.

If you are a US tax resident, your worldwide income is generally subject to US income tax. If you are a nonresident alien, different rules generally apply, including rules concerning US-source income and income effectively connected with a US trade or business. Therefore, do not assume that every NRI has the same US reporting obligations.

Review the following information:

• Your immigration and Green Card status during 2026.
• Your US travel and presence records for the year.
• Any change in your US tax residency circumstances.
• Whether you arrived in or departed from the US during 2026.
• Any change in marital status that could affect your filing status.
• Whether a spouse's tax residency or filing circumstances changed.
• Any relevant tax treaty or residency-related position previously claimed.

If you moved to the US or left the country during 2026, retain travel records, immigration documents and relevant dates. You may need to examine whether dual-status rules apply.

For detailed guidance, refer to the IRS rules on determining an individual's US tax residency status.

Collect Your US Income and Tax Documents

Your US income documents are an essential part of preparing the annual tax return. Employers, banks, brokers and other payers may issue information returns reporting payments made during the year.

Keep the following documents in one place:

Also retain:

• Final pay statements for 2026.
• Records of employer-provided compensation and benefits.
• Statements relating to other income sources.
• Relevant income records for freelance or independent work.
• Any corrected or amended information returns received.

Some tax documents may not arrive until January or February 2027. The year-end task is to identify which forms you expect, confirm that your contact details with the relevant institutions are current and collect the supporting records already available.

If you receive salary or equity compensation from a US employer, keep the relevant statements and transaction records. For detailed explanations of the tax treatment, refer to the existing Savetaxs guides on US salary income taxation for NRIs and US tax on Indian ESOPs for NRIs.

Reconcile Your Indian Income and Financial Records

If you are a US tax resident, Indian financial activities may also be relevant to your US tax reporting. The records you need depend on your tax residency, income sources, account ownership and the nature of the financial activity.

Do not assume that income or assets can be ignored simply because they are located in India or because the income has already been taxed there.

Organize the following records, where applicable:

Indian bank accounts

• Savings account statements.
• Fixed deposit statements and interest certificates.
• NRE and NRO account statements.
• Details of account ownership and joint account holders.
• Records of interest credited during the year.

Indian investments

• Mutual fund account statements.
• Shares and securities holding statements.
• Dividend statements.
• Investment purchase and sale confirmations.
• Records of investment income and relevant tax deducted at source.

Other Indian financial records

• Rental income statements and supporting records.
• Property sale or purchase documents, if a transaction occurred.
• Foreign tax payment certificates or other supporting evidence.
• Records of money received from or transferred to India, where relevant to the underlying transaction.

For example, an NRI working in the US may continue to hold an Indian fixed deposit and receive interest in an NRO account. The individual should retain the bank's annual interest certificate and account statements rather than relying only on the amount credited to the account.

Keep records of the income, relevant dates, currency and taxes paid. If a foreign income item needs to be reported on a US return, the applicable reporting and currency-conversion rules must be assessed separately.

This section is about organizing evidence, not explaining the taxation of each Indian income source. For detailed guidance, refer to the Savetaxs India-US cross-border tax planning guide.

Review Foreign Bank Accounts and Financial Asset Records

Foreign financial accounts deserve particular attention when an NRI is living in the US and may qualify as a US tax resident.

Depending on your circumstances, you may need to consider reporting requirements such as the Foreign Bank Account Report (FBAR) and FATCA Form 8938. These are separate reporting requirements, and filing one does not automatically satisfy the other.

For your year-end records, prepare a list of relevant foreign accounts and assets, including:

• Name of the financial institution.
• Country where the account is maintained.
• Account holder's name.
• Account number or other account identifier.
• Type of account.
• Account opening or closing date, if applicable.
• Account balance and maximum value during 2026.
• Details of joint ownership or signature authority.

Include relevant Indian savings accounts, fixed deposits, brokerage accounts and other financial accounts when assessing whether they fall within the applicable reporting rules.

Check whether FBAR may apply

A US person generally must file an FBAR if they have a financial interest in, or signature or other authority over, foreign financial accounts and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. The requirement is based on the aggregate value, not on whether the accounts generated taxable income.

For the 2026 calendar year, retain account details and maximum balance information so that the reporting position can be assessed accurately.

Check whether Form 8938 may apply

Form 8938 is a separate reporting requirement for specified foreign financial assets. Whether you need to file it depends on your taxpayer category, filing status, residence and the value and type of assets involved.

Do not assume that every Indian bank account or investment automatically has to be reported on Form 8938. Review the applicable asset definitions, exceptions and reporting thresholds.

Also remember that FBAR and Form 8938 are not interchangeable. Depending on your circumstances, you may have to file one, both or neither.

For more information, refer to the Savetaxs FATCA Form 8938 guide and the official IRS instructions.

Organize Your Investment and Brokerage Statements

If you hold investments in the US or India, collect the statements and transaction records needed to establish what happened during the 2026 tax year.

Useful records include:

• Annual brokerage statements.
• Purchase and sale confirmations.
• Dividend and interest statements.
• Records of securities transferred between accounts.
• Available cost-basis information.
• Statements showing foreign currency transactions.
• Relevant employer equity compensation statements.
• Records of investment accounts closed during the year.

For example, an NRI working in the US may hold shares through a US brokerage account and mutual funds through an Indian investment platform. Keeping the respective statements together helps identify transactions and income that may need to be reviewed when preparing the return.

Do not rely solely on a year-end portfolio summary. Transaction-level records may be needed to establish acquisition dates, proceeds and cost basis.

If you received or sold Indian employer equity, retain the relevant grant, vesting, exercise, purchase and sale records. The tax treatment of these transactions is a separate subject and should be assessed using the applicable rules.

For detailed information, refer to the existing Savetaxs guide on US tax on Indian ESOPs for NRIs.

Check Retirement Account Records and Distributions

Retirement accounts can involve different reporting and tax rules depending on the account type, the country in which it is maintained, and your US tax residency.

Collect relevant documents for accounts such as:

• US 401(k) plans.
• Traditional and Roth IRAs.
• Employer pension or retirement plans.
• Indian retirement or provident fund accounts, where relevant.
• Pension or annuity distribution statements.

Retain records of contributions, distributions, rollovers and account transfers during 2026. If you received a distribution, keep the relevant tax statement, including Form 1099-R where issued.

For Indian retirement accounts, keep statements showing contributions, withdrawals, interest or other credited amounts, along with the account terms where available.

Do not assume that a US retirement account and an Indian retirement account receive identical tax treatment. Their reporting requirements may differ, and the treatment can depend on your residency and the nature of the account.

This checklist does not cover retirement tax optimization, Roth conversions or detailed retirement-account taxation. Its purpose is to help you retain the documents needed for a proper review.

If you have a US 401(k) and are considering a future move to India, you can also refer to the Savetaxs guide on managing a 401(k) after returning to India.

Review Tax Payments and Prior-Year Filing Records

Before the end of 2026, organize the records that help establish what you have already reported and paid.

Keep the following documents:

• A copy of your 2025 US federal income tax return.
• Relevant state income tax returns.
• IRS account transcripts, where available.
• Federal estimated-tax payment confirmations.
• State tax payment confirmations.
• Records of tax withheld from income.
• IRS notices and correspondence.
• Details of refunds received or tax balances paid.
• Records supporting any carryforward amounts claimed on a previous return.

If you received an IRS notice during the year, retain the complete notice and any response submitted. Do not assume that a payment confirmation alone establishes that the related tax issue has been resolved.

Prior-year returns can also help identify information that may need to be reviewed again, such as carryforward amounts or previously reported foreign financial assets.

The objective is to create a reliable record of your previous filings and payments. Detailed estimated-tax calculations and withholding strategies are outside the scope of this checklist.

Prepare Your Documents for the 2027 Tax Filing Season

Once you have collected your records, organize them so that you can locate the required information during tax preparation.

A simple folder structure can help:

Use clear file names that include the institution, document type and tax year. For example:

• IndianBank_NRO_InterestCertificate_2026.pdf
• USBrokerage_AnnualStatement_2026.pdf
• Employer_W2_2026.pdf

Keep digital copies in a secure location and retain original documents where required. Avoid sharing sensitive financial records through unsecured channels.

Some information returns will be issued after December 31, 2026. Mark those documents as pending and reconcile them when received. If a corrected form arrives, retain it and use the corrected information when preparing your return.

Year-End Tax Preparation Checklist for NRIs

Use this consolidated checklist to check your preparation progress before the 2026 calendar year closes.

• Review your US tax residency and filing circumstances for 2026.
• Keep relevant immigration and US travel records.
• Identify expected Forms W-2 and 1099.
• Save final 2026 pay statements and other income records.
• Collect Indian bank statements and interest certificates.
• Organize Indian investment and other relevant income records.
• Prepare a list of foreign financial accounts and account holders.
• Record relevant foreign account balances and maximum values.
• Review whether FBAR or Form 8938 may apply.
• Collect US and Indian brokerage statements.
• Retain investment purchase and sale confirmations.
• Collect retirement account statements and distribution records.
• Save federal and state tax payment confirmations.
• Keep copies of prior-year tax returns and IRS notices.
• Create a secure folder for documents required during the 2027 filing season.
• Follow up on missing or corrected tax documents when they become available.

Completing this review does not automatically mean that your tax return is ready to file. It gives you a more organized record of your financial activities and helps identify documents or reporting questions that may need further attention.

Conclusion

For NRIs living in the US, year-end tax preparation should include a review of both US and Indian financial records. Organizing income documents, foreign account details, investment statements, retirement records and previous tax filings before the 2026 calendar year closes can make the 2027 tax filing process more structured.

The most important step is to maintain complete and accurate records rather than relying on memory or collecting documents only when the return is due. If your financial activities span India and the US, review the applicable reporting requirements carefully and seek qualified tax advice where your circumstances require a more detailed assessment.