It is indeed exempt from taxes. Our organization pays a lot less income to people who are Permanent Residents and Green Card holders than US Citizens to adjust for the non-taxable vs taxable income disparity. In addition, we are provided an official letter from our organization to show IRS in case we need an explanation on why our salary is not taxed. I also reached out to our taxes department, and they confirmed my salary is tax exempt. However, they say to refer to IRS on how to report it. I tried may times calling IRS, and they do not provide any legal help over the phone, it is impossible to get a hold of someone who could help.
All I need is find a way in TurboTax on how I can declare it as a wage, but remove it from my overall taxes due.
