Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.If your friend is not a resident alien of the US then only his US sourced income (the wages earned in the US) are taxable to him. If he has been in the US long enough to satisfy the physical presence test for residency then all his income is taxable in the US.The problem with the situation is that the IRS may see the payments as a way to evade US taxation. If he is being paid any of the amount deposited in India due to the work in the US then it is all reportable on the US return even if he is not a resident alien yet.
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He is staying in USA on a visa called H1B. I am not sure if he is resident alien.
That would depend on how long he has been here in the US. If more then 183 days then he is a resident.When did he first get here?
he entered first here in April 2010