IRS Publication 901, page 25, states:
Germany
A professor or teacher who is a resident of Germany and who is temporarily in the United States to engage in advanced study or research or teaching at an accredited educational institution or institution engaged in research for the public benefit is exempt from U.S. tax on income received for such study, research, or teaching for a maximum of 2 years from the date of arrival in the United States.
If you meet the qualifications outlined, it does appear that your income earned January 1, 2024 through May 31, 2024 would be exempt.
Was the relevant income in 2024 reported by W-2? If so, you may have to determine the amount to reverse.
In TurboTax Online, a reversal entry would be recorded as follows:
Post the negative entry as follows:
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click on the down arrow to the right of Less Common Income.
- Click to the right of Miscellaneous Income, 1099-A, 1099-C.
- Click to the right of Other reportable income.
- At the screen Any Other Taxable Income, click Yes.
- At the screen Other Taxable Income, enter a description such as “Tax Treaty reversal” and a negative amount.
- Click Continue.
The entry will be reported:
- on line 8z of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
Retain all paperwork should a tax authority have a question at a later time.
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