Greencard holder working for foreign embassy in the U.S.

Forum|Forum|4 years ago
February 13, 2022
2 replies
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I am a green card holder and I work for a Foreign Embassy in Washington D.C. I already pay social security and medicare to the foreign country (France) each paycheck. The embassy does not give me a W2, just my total gross income. France and the U.S. have a treaty together to avoid double taxation. Can somebody please give me some specific instructions on how to do this on Turbotax? I am unable to find some clear instructions. The IRS website says "If you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings." but I'm unsure how that translates into Turbotax. (I have the Home & Business version). Thank you!

Best answer by DaveF1006

Yes, you provided an exact quote from this IRS article that references Employees of a Foreign Government or International Organization - How to Report Compensation. There is a way to report this in Turbo Tax as other income.

Federal >Wages and Income
Scroll down to Less Common Income
Select Miscellaneous Income
Select Other reportable income, select ‘yes’ and you will be prompted to enter Description and amount. For the description Wages from being an employee of a foreign government not subject to FICA taxes and then the amount.

DaveF1006Answer

Federal >Wages and Income
Scroll down to Less Common Income
Select Miscellaneous Income
Select Other reportable income, select ‘yes’ and you will be prompted to enter Description and amount. For the description Wages from being an employee of a foreign government not subject to FICA taxes and then the amount.

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nhu6086Author

Thank you for your response! What about federal taxes? How does that work in this scenario with TurboTax?

ThomasM125

If you report your income as mentioned by @DavidF1006, it will appear as taxable income on your federal income tax return. If you wish to exclude the income as taxable, since you mentioned there is a treaty to that affect, you would need to make the same entry again and enter the amount as a negative number, citing the treaty in your description. Also, you would have to complete form 8833 to describe the treaty exemption, attach it to your return and mail your return in.

Form 8833 Treaty-Based Return Position Disclusure

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Faroukaroua

to whom who can help me,

I’m a green card holder that works in international organization ( IMF). Im exempt of taxation as my salary is net of taxes. I would like to know how to report my income as wages and if I can do it online and attach my employment verification that states the treaty and that Im exempt of taxation. I used to pay someone to do it and he made me mail my tax return. Could you please tell me what where I should

ErnieS0

A green card holder working in a foreign embassy in the U.S. can use TurboTax Online to file their tax return.

You can prepare online but will have to mail your return. As Tax Expert @ThomasM125 says, you will have to attach Form 8833. TurboTax does not support this form so you will have to prepare it yourself.

Follow the instructions provided by Tax Expert @DaveF1006 to enter income not on a Form W-2.

Tap Federal in the left column
Select Wages & Income
Scroll down to Less Common Income
Select Miscellaneous Income
Select Other Reportable Income
Say YES on “Any Other Taxable Income?” and enter as your description Wages from being an employee of a foreign government not subject to FICA taxes

Next enter the same amount as a negative amount in the same section. The description is Tax Treaty Exclusion

See instructions by Tax Expert Alumni @Leonard11_2 at How to claim a tax treaty with Turbotax?

@Faroukaroua

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