Question

I was awarded an edu fellowship in my country (sixth year in the US on F-1 visa ==now resident alien for tax purposes. Shall I report that foreign income and get taxed?

Forum|Forum|6 years ago
March 7, 2020
2 replies
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TurboTax Deluxe Online

As a resident alien, you have to report worldwide income. Therefore, you have to report the foreign fellowship.

Please read this IRS document for more information.

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P

pk12_2

Employee

@aalghaihab , while the general statement as to reporting world income is true for citizens/resident/resident for tax purpose as stated by @MinhT1 , it is NOT true for Non-Resident Alien. Also some of the tax treaties exclude some incomes of students from taxation by the USA . What you need to tell us is --(a) when did you enter USA on F-1; (b) Is your F visa still valid ; (c) which country are you from ; (d) are you married and if so is your spouse a Non-Resident Alien; (e) are you on OPT ;

A

aalghaihabAuthor

a) 03/2014.

b)Yes.

c) Saudi.

d)Yes , my spouse is NRA.

e) not on OPT.

Thanks.

P

pk12_2

Employee

@aalghaihab , because Saudi Arabia does not have a tax treaty with the USA, there are no treaty assertions that you can raise . Thus your monies from SA ( scholarship/ grants etc. ) is treated as income just like for students of USA, except you do not get a 1098-T. So you report the scholarship as income ( as if this was a private scholarship ) and as long as you are using towards education ( not maintenance / living expense ) fees etc., you deduct ( that fees etc . portion ) it as if you had received a 1098-T. You should get your educational institution to issue you a 1098-T, showing the fees etc. charged. This should work -- there have been similar situations with Saudi students in the last few years that I remember.

Let me know if there is more I can do for you

Khuda hafez