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New Member
posted Mar 24, 2025 7:46:00 PM

I am a US citizen in an overseas degree program. I earn 20k in stipend & and pay taxes overseas. I do not abroad long enough, so no exemption. How much tax do I pay? 1k?!

Since my program started in August 2024, I do not qualify for the Bona Fide or Physical Presence exemptions. But $1k in taxes seems excessive for having received $20k in housing stipend. FYI, my housing cost more than that.

0 3 844
3 Replies
Expert Alumni
Mar 24, 2025 7:59:14 PM

Is the stipend your only income?

Did you pay any foreign tax on the stipend?

Do you file as a nondependent or dependent US Taxpayer?

 

 

 

New Member
Mar 24, 2025 8:27:48 PM

Hello! To answer your questions:

Is the stipend your only income? Yes

Did you pay any foreign tax on the stipend? Yes

Do you file as a nondependent or dependent US Taxpayer? Nondependent/Independent US Taxpayer.

I earned between $20-$24k. When I type $20k, Turbotax is saying the tax is $497. When I type $24k, it is saying the tax is $1049.  

Thank you for your help.  

Expert Alumni
Mar 28, 2025 3:00:46 PM

It depends on a couple of things. The Standard Deduction is $14,600 and the tax rate on both the $20K and $24K is 10% after the standard deduction is applied. The difference is within the ballpark with a slight margin for error because there may be other factors involved affecting the calculation.