2026 Tax Filing & Asset Repatriation
"Big Beautiful Bill" – Tax Changes
2025 Tax Year Filing Made Easy
Big Beautiful Bill Changes
Bringing Assets from India
Contact Us: +1 317 668 7286 | https://lithosadvisors.com/
DISCLAIMER
Not accounting, investment, legal, or tax advice.
- For educational purposes only
- Goal: build awareness, confidence, and action
- Help empower others to do the same
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No Recording
Please do NOT capture any content from this workshop.
The Hidden Threat to Your Wealth
💸 Eroding Savings
Taxes erode lifetime savings — especially cross-border.
⚠️ Complex Rules
US-India tax rules are complex; errors cost big.
🔴 High-Risk Areas
Transfers, foreign accounts, inheritance
🏛️ Your Goal
Build a tax-optimized legacy
Source: Educational only. IRS OBBB overview and 2026 inflation adjustments.
What This Workshop Solves
New 2025–2026 Tax Rules
- OBBB changes decoded
- Expanded deductions & senior benefits
- New tax-saving strategies
Safe Repatriation from India
- Proper India → U.S. transfers
- Avoid compliance pitfalls
- Prevent double taxation
Tax-Optimized Legacy Planning
- Structure wealth for heirs
- Maximize inheritance, minimize IRS
- Protect family assets
Source: Educational only.
Why This Matters to Indian-Origin Families
Assets in Two Countries
Accounts, property & investments across India & U.S.
Dual Tax Systems
Navigating both India & U.S. tax obligations simultaneously
Complex Compliance
Reporting requirements easy to miss
Costly Mistakes
Errors without proper planning can be expensive
Plan ahead → less stress, fewer errors, more savings.
Source: Educational only.
The Promise Today
Our Commitment
- Clear, jargon-free guidance
- Actionable advice you can use now
Simple Explanations
Complex tax concepts, clarified.
Real-Life Examples
Rules applied to your family.
Action Steps
Improve your tax situation today.
Source: Educational only.
Agenda (60 Minutes)
Source: Educational only.
Meet the Speaker: Raja Raman
Credentials
CA (India) · CPA (IL) · IRS EA — LB&I Commissioner's Awards (2009–2018)
IRS Career (2005–2019)
International tax, OVDI & FATCA compliance
Today
Founder, U.S.–India Tax Consulting Firm
Part 1 — OBBB Tax Changes (2025+)
The "Big Beautiful" Tax Reset (2025+)
Higher Standard Deductions
Lower taxable income for most filers
New Deductions
Tips, overtime, seniors & car loans
Temporary Provisions
Act strategically — windows are limited
Key Opportunities
Roth conversions & property sales
Source: Educational only. IRS OBBB fact sheet.
Standard Deduction: Married Filing Joint
2025 Deduction
Shield $31,500 from federal tax
2026 Deduction
Rises to $32,200, inflation-adjusted
- More income shielded = lower tax bill
- Time major moves to maximize deduction benefit
Source: Educational only. IRS inflation adjustments.
Standard Deductions: All Filing Statuses
2025 Tax Year
- Single / MFS: $15,750
- Head of Household: $23,625
- Married Filing Jointly: $31,500
2026 Tax Year
- Single / MFS: $16,100
- Head of Household: $24,150
- Married Filing Jointly: $32,200
- Applies automatically — unless you itemize
- Standard deduction now exceeds itemized for most filers
- Verify income stays under threshold
Source: Educational only. IRS inflation adjustments.
Quick Question for You
Are you taking advantage of the increased standard deduction?
Yes, I've adjusted my planning
No, but I want to learn more
Not sure — need guidance
Senior Deduction: New "$6,000" Benefit
$6,000
Per senior
$12,000
Married couples
2025–2028
Valid tax years
AGI Phaseouts
Income limits apply
Source: Educational only. IRS OBBB fact sheet.
Why the Senior Deduction is Strategic
Limited Time Window
Expires after 2028 — only 4 years to maximize savings.
AGI Management Matters
Avoid phaseout thresholds; control distributions & asset sales.
Roth Conversion Synergy
Offset Roth conversion income; stay in lower tax brackets.
Source: Educational only. IRS OBBB fact sheet and planning guidance.
"No Tax on Tips" (Temporary)
Up to $25,000 Deduction
Deduct qualified tip income — can eliminate federal tax.
Limited: 2025–2028
Expires after 2028; needs Congressional renewal.
Cannot Create a Loss
Reduces tax to zero only; AGI phaseouts apply.
Source: Educational only. IRS OBBB fact sheet.
Who Should Care About "No Tax on Tips"
🍽️ Hospitality & Restaurant
Servers, bartenders, hotel staff
✂️ Personal Services
Hairstylists, estheticians, nail techs
🚗 Delivery & Gig Workers
Rideshare, food delivery, freelancers
Source: Educational only. IRS OBBB fact sheet.
"No Tax on Overtime" (Temporary)
Deduction Limit
$12,500 individual / $25,000 joint
Valid Period
2025 – 2028 only
AGI Phaseouts
High earners may lose benefit
Source: Educational only. IRS OBBB fact sheet.
Car Loan Interest Deduction
Loan Interest
Now deductible — like mortgage interest
Loans Only
Leases excluded
U.S. Assembly
Must be U.S.-made — verify via VIN
Source: Educational only. IRS OBBB fact sheet.
Why These Deductions Change Withholding
Payroll Doesn't Auto-Adjust
Withholding uses old formulas — new deductions not included.
Bigger Refund = Money Left Behind
Overpaying = an interest-free loan to the government.
Fix It: Update Your W-4
Adjust withholding to keep more money now.
Source: Educational only. IRS guidance and practical reporting.
Let's Pause Here
Have you updated your W-4 for 2026?
- No update = surprise refund or bill
- Takes 10 minutes to fix — ask your payroll department
Trump Accounts (For Kids)
What Are They?
- New IRA-type savings for children
- Up to $5,000/year contributions
- Hybrid of Roth IRA & custodial account
How They Work
- After-tax contributions
- Grows tax-deferred
- Withdrawals taxed on growth
Source: Educational only. Verify with current IRS regulations.
Why Trump Accounts Matter
Compound Growth
Decades of interest = major wealth
Tax-Advantaged
Grows tax-deferred, maximizes returns
Long-Term Security
Dedicated savings for kids' future
Generational Wealth
Systematic family wealth-building
Source: Educational only.
HSA Contribution Limits (2025)
Self-Only
$4,300 / year
Family
$8,550 / year
Catch-Up (55+)
+$1,000 extra
Source: Educational only. Fidelity HSA limits and IRS Notice 2026-05.
HSA Contribution Limits Increased in (2026)
Self-Only
$4,400 / year
Family
$8,750 / year
Catch-Up (55+)
+$1,000 extra
Source: Educational only. IRS Notice 2026-05 and Fidelity HSA limits.
HSA Expansion: Why HSAs Are "Triple Tax Advantage"
Contributions Often Pre-Tax
Lowers your taxable income immediately.
Growth is Tax-Free
No capital gains or dividend taxes.
Qualified Withdrawals Tax-Free
Medical withdrawals are 100% tax-free.
Source: Educational only. IRS HSA guidance and Fidelity HSA limits.
Retirement Catch-Up Changes
(Big Deal for Ages 60–63)
Ages 60–63 Catch-Up
Extra $11,250 bonus under SECURE 2.0 — up to $15,000 total (inflation-indexed)
Plans Covered
401(k)s, 403(b)s & similar plans
Roth Requirement
Earners $145K+ must use Roth catch-up
Source: Educational only. Confirm with IRS retirement plan annual limit releases and plan documents.
Business Owners: What Changes Emotionally
"Did I overpay taxes?"
"Can I save on taxes now?"
"How do I protect my legacy?"
Source: Educational only.
Business Owner Move #1: Clarify What's Temporary
Temporary Provisions
- Many OBBB benefits expire after 2028
- Tips, overtime & senior deductions sunset unless extended
Action Items
- Identify permanent vs. temporary benefits
- Accelerate Roth conversions now
Source: Educational only. IRS OBBB fact sheet.
Business Owner Move #2: Defend Clean Documentation
Document Everything
Deductions must be proven — keep receipts, mileage logs & expenses.
Separate Accounts
Keep business & personal finances apart.
Audit Defense
Document every cross-border dollar — clean records are your best protection if audited.
Source: Educational only.
The #1 Mistake: "Transfer First, Explain Later"
❌ The Mistake
Wire money first, explain the source later.
💸 Why It's Costly
Banks freeze transfers with unclear fund sources.
⚠️ Compliance Risk
Unreported assets trigger audits & penalties.
✅ The Fix
Document source, plan structure, comply in both countries.
Source: Educational only.
Part 2 — Asset Repatriation
India → U.S.
Compliance + Strategy + Pitfalls
Repatriation Reality: India Rules + U.S. Rules
India: RBI + Bank Compliance
RBI governs forex; requires forms & CA certificates.
U.S.: Tax + Foreign Asset Reporting
File FBAR & Form 8938; non-compliance = severe penalties.
Treaty Helps, But Compliance Remains
DTAA prevents double taxation; full reporting required in both countries.
Source: Educational only. RBI master circular and IRS FATCA overview.
NRE Account: Repatriation Advantage
Foreign-Earned Income
Holds income earned outside India for NRIs
Fully Repatriable
No transfer limits — move funds freely to the U.S.
Tax Advantage
Interest tax-free in India; must be reported in U.S.
NRO Account: The $1,000,000 Rule
India-Sourced Income
Holds rent, dividends & other India-earned funds
$1M/Year Limit
Repatriate up to $1,000,000 USD per year
CA Certificate Required
Needs Form 15CA/CB for transfers
Above Limit?
Stagger transfers or seek RBI permission
NRO Repatriation: Forms You'll Need
Source: Educational only. RBI master circular; bank processes vary.
Show of Hands
Yes — reporting them
Yes — unsure on compliance
No foreign accounts
Inheritance from India: It's Not "Just a Wire"
🔍 Identify the Source
Inheritance, property sale, or gift?
📄 Gather Legal Docs
Wills, probate, deeds, declarations
🏦 Bank Verification
Bank requires "source of funds" proof
📋 IRS Scrutiny
Large foreign deposits — prove it in writing
Source: Educational only.
U.S. Reporting: FBAR (FinCEN Form 114)
What is FBAR?
- Filed by U.S. taxpayers with foreign accounts
- Threshold: aggregate value over $10,000
- Covers bank, investment & other accounts
Why It Matters
- Filed via FinCEN — not the IRS
- Non-filing: civil or criminal penalties
- Check threshold annually
Source: Educational only. IRS international taxpayer guidance (FBAR filing).
U.S. Reporting: FATCA (Form 8938)
What It Covers
- Specified foreign financial assets
- Accounts, stocks, funds, foreign entities
Filing Rules
- Filed with your tax return
- Required if assets exceed threshold
Penalties
- Failure to file: $10,000 penalty
Source: Educational only. IRS FATCA summary.
The Emotional Fear: "Will This Trigger an Audit?"
😨 The Fear
Reporting foreign accounts = automatic audit?
✅ The Reality
Correct reporting does not trigger audits.
⚠️ Real Risk
Not reporting creates IRS red flags.
🛡️ Best Defense
Clean, complete, consistent reporting.
Source: Educational only.
If Noncompliant: Paths Forward — Not Panic
Don't Panic — IRS Programs Exist
Solutions are available to resolve past failures without maximum penalties.
Streamlined Procedures
Reduce or eliminate penalties for non-willful errors.
Professional Help
Work with a qualified tax professional.
Source: Educational only. IRS streamlined filing compliance procedures.
Streamlined: Key Concept
File Amended Returns
Amend 3 years of returns — report all foreign income.
File International Forms
Submit FBAR & international forms for past years.
Reduced Penalty Framework
Lower penalties for non-willful noncompliance.
Source: Educational only. IRS streamlined overview.
Repatriation Best Practice Checklist
Determine Account Type
NRE, NRO, FCNR — know which applies.
Identify Source of Funds
Gift, inheritance, sale, or income?
Gather Documents
Certificates, tax returns, deeds.
Plan U.S. Reporting
FBAR, Form 8938, U.S. tax return.
Source: Educational only. RBI master circular and IRS FATCA summary.
Repatriation Strategy: Reduce "Tax Shock"
Higher Bracket Risk
Large gains push into higher U.S. brackets.
Time Property Sales
Match sales to lower-income years.
Spread Gains
Distribute across multiple tax years.
Use Treaty & FTC
U.S.-India treaty + FTC cuts liability.
Source: Educational only.
Part 3
Tax-Advantaged Wealth & Inheritance vs. Tax-Later Accounts
How to Win the Money Game
Principles of Wealth Building
Protection
Investment
College
Taxes
Retirement
Legacy
Steps to Build Wealth:
- Increase Cash Flow
- Debt Management
- Emergency Fund
- Proper Protection
- Build Wealth
- Preserve Wealth
Maximize Growth — Multiply & Compounding
Minimize Risk — Lock Principal & Gains
Optimize Taxes — Tax Later vs Tax Free
Preserve Wealth — Avoid Litigation & Probate
▶ Build Net Worth
The Core Problem with Tax-Later Accounts
Traditional accounts: deduct now, taxed on withdrawal
Heirs inherit a deferred tax obligation with forced withdrawals
Can trigger a "tax bomb" — dramatically reduces true inheritance value
Source: Educational only. IRS beneficiary/RMD overview and Fidelity non-spouse IRA explainer.
The 10-Year Rule (In Plain English)
SECURE Act 2019 — updated 2022
Applies to non-spouse beneficiaries
Account must be fully withdrawn in 10 years
"Stretch" lifetime distributions — eliminated
Peak earners face massive tax drag on withdrawals
Source: Educational only. Fidelity non-spouse IRA explainer and Schwab inherited IRA explainer.
Why This Hurts Indian-Origin Families
$200K+ Earners
Doctors, engineers & lawyers in peak income brackets.
10-Year Rule Impact
Forced withdrawals land on top of already high income.
32–37% Federal Tax
Plus state taxes — wealth heavily taxed & liquidated fast.
Source: Educational only.
Think About This
What tax bracket will YOUR children be in when they inherit?
Higher than yours?
Plan strategically now.
Lower than yours?
Traditional accounts may work fine.
Not sure?
Let's talk after the workshop.
Two Buckets: "Tax Later" vs "Tax Free"
Tax Later: Traditional
- Deduction today
- Taxes due on withdrawal
- Heirs inherit a tax bill
Tax Free: Roth & IRC 7702
- Pay taxes upfront
- Withdrawals are tax-free
- Heirs keep tax-free growth
Source: Educational only. IRS IRA guidance and qualified distribution rules.
"The Window Strategy"
Parents Retire at Lower Rates
Use the lower bracket window to act.
Convert Now: 22–24%
Traditional → Roth during retirement window.
Prevent Heirs Paying 32–35%
Shift the burden — preserve more wealth.
Source: Educational only.
HSA: The Ultimate "Tax" Account
Triple Tax Advantage
Contribute, grow, withdraw — all tax-free
Invest, Don't Hold Cash
Max contributions & invest the balance
Delay Reimbursement
Pay now; reimburse yourself tax-free later
Legacy Wealth Engine
Compounds tax-free for decades
Source: Educational only. IRS Notice 2026-05, Rev. Proc. 2025-19, and Fidelity HSA limits.
529 Plans: Tax-Free Education Bucket
Tax-Free Growth
Grow & withdraw completely tax-free
Broad Coverage
Tuition, fees & books — all covered
Invest Early
Fund early for long-term growth
Roth IRA Rollover
Unused funds roll into a Roth IRA
Source: Educational only. IRS 529 plan guidance.
IRC 7702: "Tax-Advantaged" Used Carefully
Death Benefit Tax Treatment
- Tax-free to beneficiaries
- Provides liquidity to heirs
Use Cases for Legacy Planning
- Cash value for estate taxes or legacy
- Income replacement for survivors
Source: Educational only. Use carrier/IRS guidance and state rules; not legal advice.
ROBS Plan (Rollover for Business Start-Ups)
Purpose & Tax Win
Fund business via C-corp buying employer stock — avoids income tax + 10% penalty on cashout
Retirement Taxes
Not tax-free — future distributions still taxable
Trade-Off
High complexity + ongoing compliance costs
Educational only. Work with qualified ERISA/tax professionals before implementing.
The Real Enemy Is "Tax Drag"
Tax Drag
Crushes long-term compounding
Every Dollar Taxed
Is a dollar not reinvested
The Solution
Use tax-advantaged accounts
Educational only.
Mini Case: The "10-Year Tax Trap"
$1.5M
Sharma family in traditional IRAs
High Earners
Children face elevated tax brackets
10-Year Rule
Forced withdrawals (SECURE Act)
$500K+
Lost to taxes
Source: Educational only. SECURE 10-year rule explainers (Fidelity/Schwab).
Mini Case: The "Tax Optimization Win"
Strategy
Traditional → Roth conversion over 10 years
Tax Rate
Taxes paid at parents' lower 22% rate
Inheritance
Children inherit tax-free Roth IRAs
Result
$400,000+ in wealth preserved
Source: Educational only.
The Punchline
Same Money
Identical starting wealth.
Different Tax Timing
One family paid lower rates. Heirs faced higher burdens.
Dramatically Different
$400,000+ difference in preserved wealth.
Tax optimization: not about earning more — about keeping more.
Source: Educational only.
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