Hello everybody,
I am having trouble understanding what tax regulations apply in this certain scenario:
I have a dual citizenship (German and US) and temporarily moved from Germany to the US for a Postdoc position, which I started 10/23 at a US university. The postdoc is planned for 24 months, for which I receive a German Fellowship, which by definition is tax-free in Germany. My previous job in Germany is only paused, and we plan to go back to Germany after 24 months.
To meet the minimum requirements for postdoc salaries at my institution I am supplemented a certain amount of money by my department in the US.
I guess as I have the US citizenship I am considered a US resident for tax purposes.
My question now is whether the German fellowship money is also considered tax-free in the US. According to the US-German tax treaty the fellowship should be exempt from US tax. However, I am not sure whether the tax treaty applies due to my dual citizenship.
The money supplemented by the institution in the US should be subject to state and federal tax. The question is just whether the fellowship money from Germany can be considered tax-free or not.
help on this would be greatly appreciated as the regulations on this scenario are about confusing for me..
Thank you!
