Is my daughter required to report as U.S. income the €1,000 a month stipend she receives from the Spanish Ministry of Education for the N. A. Language Assistants Program?

[bawe376610]

Spain withholds no taxes on her payments and considers it living expenses. Her contract is for six months so she does not qualify for a U.S. foreign residency credit. If yes, where would I report this on her 1040?

[NCperson · Accepted solution]

as a US citizen, she is required to report all her world-wide income.

how much is her total income? if less than $13,850, there is no filing requirement in any event.  However, if there are withholdings, the only way to get the withholdings back is to file.  (I am assuming she may be a student with little other income). 

[egough2001]

My daughter is in a similar situation and only earned 3000 euro in 2024 from the Spanish Ministry of Education.  Does she need to file a tax return if that is the only income she had in the US or Spain for 2024?

[DaveF1006]

To clarify, are you reporting your daughter as a dependent on your return?

[egough2001]

Yes, we are.

[ThomasM125]

The income would qualify as taxable income, but if that is all she earned she may be below the filing threshold. You can use this IRS tool to determine if she needs to file.

[user17549282037]

Hello, this is in regard to the 2023 tax year. I am a US citizen who worked part of the year (approx 6 months) in Spain as part of the Spanish government's NALCAP program. I reported the living expense stipend amount (equal to approx $3300 total over the period of time I worked there) on our Schedule 1 form as "other income."

We are married filing jointly, and my husband has a substantial income from his employment with a hospital. We've now received a letter from the IRS saying that the amount on line 8z (the $3300), appears to be subject to self-employment tax. Does this sound right? Was I "self-employed" during this period of cultural exchange/language assistance in Spain? If so, how should I calculate that? Many thanks!