Hello,
I am a US-citizen researcher receiving a tax-free fellowship to do research in Japan for 6 months. The Japanese fellowship stipulates the following:
"As the maintenance and other allowances provided by JSPS to researchers are not employment
based wages, they are not subject to withholding tax. In addition, as these allowances take the form
of travel expenses required to support the researchers' stays in Japan and are limited to covering
actual expenses, they are exempted from taxation."
I have the following questions:
1- Would the US-Japan Tax Treaty, Article 20, exempt me from paying US tax on the above tax-free Japanese fellowship? I satisfy both conditions in Article 20 of the Treaty as explained below:
Technical Explanation, U.S.-Japan Income Tax Treaty, signed November 6, 2003
Article 20, page 75
"A teacher or researcher who satisfies these two conditions will be exempted from tax by
the host Contracting State on any remuneration for such teaching or research for a period not
exceeding two years from the date he first visits that Contracting State temporarily for the
purpose of teaching or conducting research. "
I did not have to pay tax on this fellowship in Japan. Do I have to pay tax on this tax-free Japanese fellowship in the US?
2- How do I enter the above tax-free Japanese fellowship in TurboTax Premier 2024, and how to take the tax exemption in the US?
Thank you.
vql
