How to report a foreign Postdoc fellowship?

Forum|Forum|5 years ago
July 10, 2020
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I am receiving a postdoc fellowship from a German Institution. I reside in the US, working as a postdoc remotely. The fellowship is tax-free in Germany. How do I report it on my tax form so that is stays tax-free?

If I report it as a foreign income, I have to pay taxes on it. Thank you.

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pk_

Level 15

@_Maria_ , are you a German citizen? What visa are you on ? when did you enter the USA ? How did you file your return in 2018?

Generally IRS would consider your work place to be your tax home and as such the income from Germany is not foreign income because you are performing the work while physically here in the USA. I need the answers because I sort of remember that under certain conditions these fellowships are taxable only by the issuing state if the recipient was a resident of that state immediately prior to coming to the USA . Once I get your answers then I will go back and verify the tax treaty conditions.

_Maria_Author

Level 2

Thanks a lot for your input!

I have no German citizenship, here in the USA I am a permanent resident since 2016. The fellowship started in 2019, in Germany it is non taxable, neither for me nor for the Institute providing it.