Frequently asked questions
2,096 answers to the financial planning questions we hear most often, in plain English. Filter by topic below, or use the search in the top menu to jump to one.
Showing 889–912 of 2,096
Is it smarter to rent and invest the difference than to buy right now?
Sometimes, yes — buying isn't automatically better than renting. If your would-be mortgage, taxes, insurance, and maintenance far exceed comparable rent, and you invest the gap plus your saved down pa…How does my credit utilization affect the mortgage rate I'm offered?
Your credit score drives your mortgage rate, and utilization — how much of your available credit you're using — is one of the biggest score factors. High balances relative to limits can pull your scor…What are seller concessions and how much can I ask for in a buyer's market?
Seller concessions are costs the seller agrees to cover on your behalf, most commonly a portion of your closing costs or a temporary rate buydown. Loan programs cap them — conventional loans allow rou…How do I know if I'm financially ready to buy versus just wanting to buy?
Readiness is about stability and cushion, not just qualifying for a loan. Green lights: stable income you expect to keep, a credit score strong enough for a good rate, a down payment plus closing cost…Can I appeal my property tax assessment if I think it's too high?
Yes, and it's often worth doing. Assessors are estimating value en masse and frequently get individual homes wrong. Start by reviewing your assessment notice for factual errors — wrong square footage,…What is FBAR and who needs to file it?
FBAR stands for FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). US persons — including citizens, green card holders, and resident aliens (H-1B, L-1, and others who meet the Substantia…Can H-1B visa holders invest in the US stock market?
Yes. H-1B visa holders who are US tax residents (meeting the Substantial Presence Test) can open and invest in taxable brokerage accounts, Roth IRAs, Traditional IRAs, and participate in employer 401(…What is a PFIC and why does it matter for NRIs and H-1B holders?
PFIC stands for Passive Foreign Investment Company — a tax classification applied to most foreign (non-US) mutual funds, ETFs, and Unit Investment Trusts (UITs), including popular Indian mutual funds…How does the US-India tax treaty affect me as an H-1B or green card holder?
The US-India Tax Treaty provides certain protections but does not eliminate the obligation to file US taxes on worldwide income. Key provisions: Article 21 provides relief for students and business ap…How should I plan financially if I might return to India someday?
Uncertainty about whether you will stay in the US or return to India creates specific planning challenges. Key steps: (1) Maintain US retirement accounts — they remain yours and can be managed from In…How do I build credit in the US as a new immigrant?
Many immigrants arrive with no US credit history, making it difficult to get approved for credit cards, apartments, or auto loans. Steps to build credit from scratch: (1) Open a secured credit card —…What is the Substantial Presence Test and how does it decide if I'm a U.S. tax resident?
The Substantial Presence Test (SPT) is the day-counting formula the IRS uses to decide whether a non-citizen is a resident for tax purposes. You pass it if you were physically present in the U.S. at l…What's the difference between a resident alien and a nonresident alien for U.S. tax purposes?
A resident alien is taxed by the U.S. much like a citizen: on worldwide income, using Form 1040, with access to the standard deduction and most credits. A nonresident alien is taxed only on U.S.-sourc…What is a dual-status tax year and when does it apply to me?
A dual-status year is a single tax year in which you're a nonresident alien for part of it and a resident alien for the rest, which typically happens in the year you arrive in or permanently leave the…What is the first-year choice election and why might I use it?
The first-year choice is an election that lets you be treated as a U.S. resident alien for part of your arrival year, even if you don't meet the Substantial Presence Test that year. It's useful when y…Should I file Form 1040 or Form 1040NR as a newcomer to the U.S.?
File Form 1040 if you're a resident alien for the year, and Form 1040NR if you're a nonresident alien. Resident aliens (those who meet the green-card test or Substantial Presence Test) use the same 10…Why does the U.S. tax my worldwide income once I become a resident alien?
The U.S. taxes residents and citizens on worldwide income because it uses a residence-and-citizenship-based system rather than a purely territorial one. Once you're a resident alien, every dollar you…What is the Foreign Earned Income Exclusion and who can actually use it?
The Foreign Earned Income Exclusion (FEIE) lets qualifying U.S. citizens and resident aliens exclude a large chunk of income earned while living and working abroad—up to $130,000 for 2025. It's claime…
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