SusanY1
Expert Alumni

Education

With a cursory read of the treaty terms around visiting students and teachers (Article 20), it appears that the type of income that you describe likely remains tax-free while in the US.   There could be factors in your overall tax picture, however, that require additional consideration.

As a US citizen, you're required to report your worldwide income every year, regardless of where you live and whether or not the income is taxable in your resident country.

The terms of the tax treaty are then used to determine the taxability of the various types of income reported on your tax return. 

As a US citizen, you will always be a resident for tax filing purposes, and you will always file Form 1040 (never form 1040NR, even when you reside outside of the US.)  

 

However, the definition of resident in the tax treaty is different, and your citizenship doesn't alter it.  In the tax treaty, in general, "resident state" refers to where you are living when the income is received (in this case your "resident state" is the US, even though you are always considered a "tax resident" as a citizen.)

 


TurboTax doesn't directly support tax treaty positions reported on Form 8833, but it would be possible to make manual adjustments to the income in our download products and attach the form for filing by mail.

 

It is best to consult with someone with expertise in the tax treaty between the US and Germany to determine the taxability of your fellowship in the US prior to filing your return. 


 

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