Income from an international organization (Goethe Institut)

Forum|Forum|2 years ago
February 24, 2024
2 replies
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Hi - I work as a contractor for Goethe Institut and got my annual income statement. They have not issued a 1099. How do i report this income on my taxes?

Below is the translated version on the income statement

In the attachment I will send you a confirmation of the payment of fees in 2023 for your records.

Please note that the Goethe-Institut as MFGO does not issue a 1099 form. This confirmation serves as a replacement for such a certificate.

The stated fee sum includes all fees paid in US dollars by Goethe Institutes in the USA in the year mentioned.

Please get in touch if you have any questions about the form.

Not A Product Question

Best answer by AmyC

You need to enter the 1099 income more like wages since you are exempt from the self-employment tax. This means answering a few questions wrong to get the right answer. You need to have the amount in USD and enter a 1099-MISC with the income in box 3.

Follow these steps:

Log in to your return.
Go to income
Scroll down to Other Common Income
Select Income from 1099-MISC
Edit/ Start/ Revisit
Enter income -the income should be in box 3,
Enter tax if any withheld in box 4
Continue
Describe the reason -
continue
None of these apply
Continue
Did this involve main job?
No -this is for the worksheet to get the right answer despite it being your job
Continue
How often do you get?
Got in 2023 - even if you receive this each year so the program won't think this is another job
Continue
Intent to earn money?
No again, obviously you work for money but this needs to be no for the worksheets
Continue
Do you have another?
No
Continue

DawnC

Employee

Employees working for a foreign government or an international organization are subject to some special tax rules. The tax treatment of their compensation can vary according to whether the employee is a U.S. citizen, a dual citizen, a green cardholder (lawful permanent resident), or a foreign citizen without a green card. Please review this IRS webpage, and let us know which category you are in.

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harshmdiAuthor

Thank you for a quick response. I am a green card holder.

AmyCAnswer

Employee

Follow these steps:

Log in to your return.
Go to income
Scroll down to Other Common Income
Select Income from 1099-MISC
Edit/ Start/ Revisit
Enter income -the income should be in box 3,
Enter tax if any withheld in box 4
Continue
Describe the reason -
continue
None of these apply
Continue
Did this involve main job?
No -this is for the worksheet to get the right answer despite it being your job
Continue
How often do you get?
Got in 2023 - even if you receive this each year so the program won't think this is another job
Continue
Intent to earn money?
No again, obviously you work for money but this needs to be no for the worksheets
Continue
Do you have another?
No
Continue

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harshmdiAuthor

Question about e-filing: The employer Goethe Institute does not have a EIN or tax id so i am not able to enter in my 1099-misc form and it not allowing me to e-file.

I also enquired about how to report this income with another CPA and I was advised to report it as foreign earned income.

Can someone please advise what is the correct way?

AmyC

Employee

You need to enter the income. If you fall under a tax treaty, you would take it back out and may need to file Form 8333. If you have paid tax on the income to another country, you can file Form 1116 for a credit. It could be as simple as just entering the income.

First enter the income:
1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description substitute 1099-MISC Goethe Institute
9. Amount, enter your amount
10. Continue

References:

Where do I enter the foreign tax credit (Form 1116) or deduction?

About Form 1116, Foreign Tax Credit

Tax treaties

Form 8833, Treaty-Based Return Position Disclosure

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