Deductions & credits

@sche454178 ,  thank you for the additional info.  As I understand the situation ( and based on which  I offer my response), is as follows:

1. You and spouse are both citizens of Israel;

2. One or both of you worked in Israel for a local entity for a total wages of US$ 28,000   ( 20,000 from Jan 1st through Sept. 15th.  and  8000 from Sept. xx through 12/31/2022)

3. You each passed the GreenCard test  and therefore became a resident  on 9/15/202 or thereabouts. And you thereafter went back to Israel  and came back to US on 11/15/2022 or thereabouts.  After coming back you continued to work  for the Israel entity remotely from 11/15  through the end of the end of the year.

Now the question is how to file, what incomes to declare for Us purposes  and whether  you can use the  standard deduction in filing , thus reducing tax liability  for US tax purposes.--- yes ?

There is also the question about whether  you can utilize the first year choice -- yes ?

Taking the last item first --- first year choice is generally targeted   towards and used  by taxpayers  whom meet the following conditions  --- (a) have been in the USA for at least 31 days ;  (b)  have been present in the USA  at least 75% of the days  between arrival and  12/31st of the year ; (c) were not a tax resident during the prior year i.e. previous to tax year at issue  and (d) will meet the substantial presence test the following year.  They also must file the return post meeting the SPT.  

Since you meet the  Green Card test  ( one of the tests  refrd. above for tax residency  ) and therefore a Resident ,  you are NOT eligible to apply for the First Year Choice.

Since you passed the Green Card test  , you are a resident for the year, and as mentioned earlier your reporting year starts from the first full day after admission as a resident. Prior to that only your US  sourced income could be taxed by the USA, since  you were a Non-Resident Alien.

I think because you went back to Israel and earned monies there  for the period  Sep15 through Nov 15th  ( approx ) could be classed as foreign source income, part of your world income and any taxes paid to Israel on this income ( specifically ) would be eligible  for foreign tax credit.

Since you are filing form 1040 there is NO restriction that you have to allocate the standard  deduction ( it is not possible in case law or regs ) nor a requirement to use itemized deduction.  Thus you should be able to use the full standard deduction as default. 

Given the figures  and filing as Married Filing Joint, you would not have to pay any income taxes.  

However,  there is the requirement of FICA or SECA  ( Social Security  & Medicare  for a total of 15.3% of the gross income) reported on Schedule-SE.  Since there is no totalization agreement between US and Israel,  and because for the period  Nov.15 through Dec31st, you were residing in the USA and earning as an independent contractor to the Israel entity, you will have to carve this out is local income ( work being done in the USA ), report this  amount on schedule-C , deduct any direct and allowable expenses related to this stream of income .  The net amount (over $400)   will also be reported on  Schedule-SE for computation of  SElf-Employment Taxes  (SECA).

Thus your total wages is broken into three parts --- Jan1st through Sept 15th -- not reportable to US; Sept xx through Nov 15th  -- foreign source income, reportable  and possibly  eligible for foreign tax credit;  Nov 15th/ 16th through 12/31 -- reportable as self-employment income and subject to SECA.

The extra benefits that you got ( US10,000 ) from Govt of Israel, generally not income because it is a general benefit and should be reportable or taxable in the US.  I don't know  much about this aspect of Israel but I know that UK has a similar program of monies for all mothers and is a general benefit -- not taxable for US purposes.  Some US states may include this in household  resources computation for some credits.

Please also see US-Israel tax treaty  article  16, para 2 and article 17 paras 1,2,&3 just for familiarity

TurboTax is quite capable to do all this for  you, however a consultation with a professional  is possibly advisable.  It is quite doable (IMHO) , especially with the help of the people on this forum.

Have I missed anything ?   Is there more I can do for you ?

pk