According to the IRS it its latest publication, if you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings.
That link that is posted by Prady is from a publication written in 2005 and cannot be trusted as an authoritative source. Besides, this is for aliens that maintain their immigrant status and does not apply to Green Card holders. Green card holders must report all income from all sources.
Here is how to report your income in Turbo Tax that avoids the self-employment tax issue.
You can report this as other income on TTO. To report in Turbo Tax Online.
- Log into your account
- Select Wages and income
- Less Common income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed. For the description, enter IMF compensation and the amount.
In the end, you will owe federal income taxes on the the gross amount but FICA taxes will not be assessed.
@nhu6086
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