I moved from Israel to US on permanent resident visa in 2022, I recieved fellowship in 2023, do I need to report it and can I exclude it from tax?

Forum|Forum|2 years ago
April 9, 2024
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I know treaty between US and Israel exists, but I am not sure if it applies to my situation , I recieved fellowship in 2022-2023 which is not taxable in Israel, whole 2023 I was in US as permanent resident.

Best answer by DaveF1006

No. This is not stipulated in the US/Israel tax treaty so this scholarship is fully taxable to you as a US resident.

@sche454178

Vanessa A

No. If you are a resident alien, then you are subject to the same tax rules as a US citizen. You would not be able to claim a tax treaty for 2023 if you were a resident for all of 2023 on any type of income you receive.

"Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. federal tax on income from a scholarship or fellowship grant". Claiming Treaty Exemption for a Scholarship or Fellowship Grant

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sche454178Author

Thank you for reply, I know this, but there is also sitations when becoming resident alien you are still exempt from paying taxes on educational stipends, please take a look at this article of US - Israel tax treaty , what do you think?