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Get your taxes done using TurboTax
Under the World Bank Group Tax Allowance System, non-U.S. citizens assigned to work in the U.S. do not have to pay U.S. income taxes on their Bank income. For that reason, the Bank's compensation system provides for net salaries - salaries that are net of taxes. US citizens are required to pay all income and social security taxes.
To report the wages and then exclude them, here is how to report.
- Open your Turbo Tax return
- Go income and Expenses
- Less Common income
- Miscellaneous Income
- Other income not already reported on a W2 or 1099
- Answer and record all information in this section. When it asks for a reason code, choose Code G.
- Once complete, this will show up as wages in Line 1G of your 1040 and also will appear in Form 8919.
Now, since you have this reported, you will now exclude under terms of the agreement.
- Under miscellaneous income, scroll down to other reportable income.
- As a description, type in World Bank Excludable income and then represent the amount paid with a minus sign in front of it. This will completely offset the income.
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‎February 7, 2025
3:31 PM