How do I show World Bank income if an STC and green card holder. It appears that it is tax exempt - but elsewhere the IRS indicates that it must still be reported. How?

[Agoel15]

Isnt this like a gift of $100 from a family member?  If thats also exempt, and would not be reported, why is other international income that is exempt get reported?

[ReneeM7122]

If you qualify for and claim the foreign earned income exclusion, the foreign housing exclusion, or both, you must figure the tax on your remaining non-excluded income using the tax rates that would have applied had you not claimed the exclusion(s). Use the Foreign Earned Income Tax Worksheet in the Form 1040 Instructions.

In TurboTax, use the search box to navigate to the Foreign Earned Income Tax Worksheet.

@too_much_tax_paperwork

[shiyuepiaoxue]

I am in a similar situation. 

I am wondering if I need to make estimated payments using Form 1040-ES to IRS on the WB income?

[RobertB4444]

Since the WB income is exempt from income tax you do not need to make any estimated payments to cover it.

@shiyuepiaoxue 

[tax_fellow]

I tried this. Two different agents and they could not help.

[DoninGA]

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@tax_fellow wrote:

I tried this. Two different agents and they could not help.

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This thread has posts that are 5 and 6 years old.

What did you try and what exactly are you trying to do?

[tax_fellow]

So there is the message up there on calling the IRS. That is what I was replying to. I followed the the steps described and dialing options. I got to talk to 2 different agents but there were unable to help me understand how to declare this World Bank tax-exempt income to the IRS for a green card holder.

[DoninGA]

@tax_fellow Go to this website - https://thedocs.worldbank.org/en/doc/634811559059116423-0220012019/render/TaxSTCFAQs.pdf

I am a short-term consultant (STC) and I hold a U.S. green card. Will I be affected by the change in the
tax classification process?
No, if you are not a U.S. citizen, your Bank Group income is exempt from U.S. income taxes, and is not
reported to the U.S. Internal Revenue Service (IRS).

[DaveF1006]

is this for paid income or dividends and interest issued by World Bank?

[tax_fellow]

@DaveF1006  this for paid income. The World Bank refers to it as compensation to staff.

[tax_fellow]

Thanks @DoninGA .  Unfortunately If I do not report it as that piece seems to (partly) suggest, since I am filing jointly with my spouse who has non-WB income, I get such a huge tax refund which leaves me dumbfounded.

[DoninGA]

If you are a STC and a green card holder the WB income you received is not reported on a US federal income tax return.

[DaveF1006]

Here is an additional resource that backs up DoninGA advice. No, if you are not a U.S. citizen, your Bank Group income is exempt from U.S. income taxes, and is not reported to the U.S. Internal Revenue Service (IRS). This is listed at end of this source for Non-US Nationals.

@tax_fellow