Can You Write Off Your Indian Parents? The Weirdest (Legal) Tax Deductions for NRIs

Pujit Siddhant

Apr 14 2025

<div class='bc_element' id='bc_element'1 style=' background:#null;color:#null;font-family:null;width:auto;padding:5px;max-height:100%;'>Taxes aren’t just about forms and deadlines. They’re also about figuring out what you can legally claim to reduce what you owe. For Indian immigrants, especially those supporting family back home or juggling responsibilities across continents, the question comes up every year: Is there anything I can deduct that others might not know about? Turns out, yes. The U.S. tax system has some strange but fully legal ways you can reduce your taxable income. And yes—some of them might apply even if your parents are in India. Let’s Start with the Big One: Claiming Your Parents as DependentsIt sounds strange, but if you’re financially supporting your parents in India, you may be able to claim them as dependents on your U.S. tax return. The IRS doesn’t care where they live—it cares about how much support you’re providing. What you need to prove: You provided more than 50% of their financial support for the year.They earned less than the IRS income threshold (this usually excludes foreign pension or social security in India).They are not filing a joint tax return (most likely they aren’t filing anything in the U.S., so you’re good there).They are considered a qualifying relative, even if they live abroad.You’ll need documentation—bank transfers, remittance records, and expense summaries help. It’s not automatic, but it’s not impossible either. Medical Expenses Paid Abroad (In Some Cases):If you’re paying for your parents’ medical treatment in India—say, hospital bills, medications, or long-term care—you may be able to include those costs under itemized deductions if:-You are a U.S. taxpayer,-Your parent is a qualified dependent,-And you’re the one footing the bill.Again, it’s about proof. You’ll need receipts, bank statements, and possibly translations. This works better for those who itemize rather than take the standard deduction. Education Gifts or Tuition Fees for Siblings This one’s more indirect. If you’re paying for a sibling’s college education in the U.S. and that sibling is a dependent, you may be eligible for education credits like the American Opportunity Credit or the Lifetime Learning Credit. But if your sibling is in India, this doesn’t apply. What you can do is set up certain gifting structures (if you’re on a higher income bracket) that can reduce future tax burdens—but this is more of a long-term strategy. Claiming Work-From-India Deductions Let’s say you spent a few months in India but continued working remotely for your U.S. employer. Can you deduct expenses like travel, internet, or accommodation? In most cases, no. But if you're self-employed, some of those costs may count as business expenses—if they were necessary, directly tied to your income, and properly documented. Home Office Deductions Still underused by many. If you’re working from home and have a dedicated space exclusively for work, you can calculate a home office deduction. It’s a simple square footage calculation or actual expense method—whichever works better. Note: This doesn’t apply to W-2 employees. It’s mostly for freelancers and business owners. HSA and FSA: Underutilized ToolsIf you're supporting your family medically and have access to a Health Savings Account (HSA) or Flexible Spending Account (FSA) through your employer, max it out. Even if you can’t use it for your parents, it still reduces your taxable income while covering your own medical expenses. Standard Deductions Many Still Miss Student loan interest: You can deduct up to a certain limit even if your parents paid part of the loan.Charitable donations: If you donated to a U.S.-recognized nonprofit, it’s deductible. Donations to Indian NGOs don’t count unless they’re registered under specific U.S. entities.Job-related relocation (for armed forces only now): This applies to a niche group but still relevant for some.What NOT to DoSome people hear “claim your parents” and just go ahead and do it. That’s not the move. If you can’t prove the financial support or if the numbers don’t add up, it’s not worth risking a penalty. Also, never claim deductions based on verbal advice from forums, WhatsApp groups, or casual conversations. IRS audits don’t care what someone told you. They care what you can show. When in Doubt, Ask a CPA Familiar with International FilingsMany tax professionals aren’t aware of these niche deductions unless they work with immigrant clients regularly. If your financial life spans two countries, you need someone who understands that dynamic. It’s worth the investment. Bottom Line The U.S. tax system may not be simple, but it does offer a few doors for those who know where to look. If you're supporting your parents in India, running a small business, or balancing life between two continents, you don’t have to leave money on the table. File what’s accurate. Claim what you can. And keep every receipt like it’s gold. </div>

Filing From Two Worlds – What Dual-Income Indian Families Get Wrong About US-India Taxation

Managing finances as a dual-income family in the U.S. is complicated enough. Add income or assets back in India, and suddenly you're dealing with two completely

Gen Z Indians in America—Too American for India, Too Brown for the US

Gen Z, roughly born between 1997 and 2012, is growing up in a very different world compared to previous generations. This generation of Indians raised in America navigates a cultural landscape filled with contradictions. They frequently hear that they’re too American to fit into traditional Indian culture but still feel too Indian to fully

The Deadline Dilemma – Why Indian Immigrants Wait Till the Last Minute to File Taxes

If you're Indian and living in the U.S., chances are you're either scrambling to finish your taxes or have already filed in a rushed state of mind. This behavior isn’t random

The Ivy League Trap: Are Desi Parents Overvaluing Prestige?

For many Indian parents, this is not just about education. It is about validation. It is about proving that their journey—from India to the U.S., from middle-class lives to

Lost in Translation: How Indian Phrases and Symbols Get Misinterpreted in the West

A well-known example is when pop star Rihanna got a Sanskrit tattoo that was supposed to mean “forgiveness, honesty, and control,” but was grammatically incorrect. Others have ended up with random phrases on their skin that don’t mean what they think they do.

Tara Prasad: The Indian Figure Skater Who Gave Up U.S. Citizenship to Compete for India

When Anand Mahindra highlighted figure skater Tara Prasad’s achievements on social media, it was a rare moment of mainstream attention for an athlete competing in a discipline that remains largely unfamiliar in India. Prasad’s journey—one that saw her renounce her U.S. citizenship to compete for India—raises broader questions

Real Influencers: How Divya Tyagi Revived a 100-Year-Old Equation to Improve Wind Energy

At first glance, this might seem like a niche achievement, something confined to academic circles. But Tyagi’s work has real-world implications. By improving how

Beyond Colors: What Holi Means When You’re Away from Home

The popular version of Holi goes like this: Holika, a demon, tries to burn Prahlad, a devotee of Vishnu. The fire doesn’t harm him, but it consumes her

Five Women Entrepreneurs Driving Social Change This Women’s Day

Across India and beyond, women social entrepreneurs are building solutions where governments and markets have struggled. They are addressing access gaps,

Women Who Left, Women Who Stayed: The Silent Stories of Indian Immigrant Women

When a woman moves to the U.S. with her husband, she does not just leave her country behind. She leaves behind her professional identity, her support system, and a familiar way of life. In India, she may have been surrounded by family, able to rely on parents, siblings, or domestic help for support. In the U.S., she is often alone,

Zohran K. Mamdani: The Democratic Socialist Shaping New York’s Political Future

Mamdani didn’t plan to get into politics—it was something that came out of the work he was already doing. As a foreclosure prevention counselor, he saw firsthand how

Mindy Kaling Becomes First South Asian Woman to Receive a Star on the Hollywood Walk of Fame

Mindy Kaling has reached another milestone in her career, becoming the first South Asian woman to receive a star on the Hollywood Walk of Fame. The event, held on February 20, 2025, was attended by close friends, family, and colleagues, including BJ Novak, who delivered a speech recognizing Kaling’s impact on television, film, and

Things We Grew Up Loving: A Meditation on Memory, Meaning, & A Search for Ourselves

As we grow older, something strange happens: we start to see childhood not just as a time but as a place—one we have left behind, one we can never return to. The

The Soundtrack of Our Childhood: Why Certain Sounds Never Leave Us

Memory has an odd way of working. Sometimes, it’s a photograph that brings back the past; other times, it’s a long-forgotten scent. But nothing quite transports us the

Kash Patel and Tulsi Gabbard: Hindu Voices Challenging the American Deep State

In American politics, the concept of the "deep state"—a hidden, unelected bureaucracy influencing national policy—has long been debated. But recent

Indian-Origin Musician Chandrika Tandon Wins Grammy for Best Global Music Album

Chandrika Tandon’s recent Grammy win is more than a personal achievement; it marks another milestone for Indian musicians on the global stage. At the 66th

76 Years After Gandhi: Non-Violence and Its Relevance to Global Conflicts Today

Gandhi's advocacy for non-violence was not passive; it was a deliberate strategy to challenge power structures without resorting to physical aggression. His methods

Priyamvada Natarajan: Time's 100 Most Influential Scientist in Astronomy

A theoretical astrophysicist and professor at Yale University, Priya focuses on understanding phenomena that remain invisible to the human eye, like dark matt

Trump’s Inauguration and the Growing Influence of the Indian Diaspora

The Indian diaspora in the United States consists of over 5.1 million people, making up about 1.5% of the U.S. population. Despite their small percentage, Indian

India’s Unwanted Export: A Gujrati in the FBI’s Top 10 List

The FBI recently took to X (formerly Twitter), pleading for tips and offering a $250,000 reward for information on Patel. They even shared four photos of him, ranging from “I just woke up” to “I’m practicing

85 Years of Tom and Jerry: How a Cat and Mouse Redefined Global Humor

This year, as the iconic duo celebrates their 85th anniversary, it's worth reflecting on how these seemingly simple characters have remained a part of global consciousness for nearly a century.

Celebrating Pongal and Makar Sankranti in American Winters

Makar Sankranti marks the Sun’s northward journey, symbolizing light, growth, and new beginnings. It’s a time to celebrate change and progress, with kiteflying being a key tradition.

Ancient Indian Ethics in Corporate Sustainability: Aligning Dharma with ESG Principles

Exploring the connection between Dharma and ESG not only reveals the timeless relevance of Indian traditions but also offers valuable insights for creating sustainable and ethical corporate practices.

What Indian Traditions Teach Us About Time and Resolutions

In Indian traditions, time is not a straight arrow but a repeating cycle, much like the seasons. This concept is central to many Indian philosophies and practices, where time is divided into kalpas (epochs),

MySilsila - the online magazine by Radar108, is a destination for the Global Indian diaspora. We bring stories, news, information, vendors and deals relevant to the rich fabric of Indian communities.

Bazaar

Deals

Luminaries

Lifestyle

Learn

Humor

Recipes

Short Stories

Write

Vendor

FAQ

Privacy Policy

Terms of Service

Disclaimer