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?!

[oceanrest92]

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.

[Vanessa A]

Housing stipends are taxable income.  If you use money for housing it is taxed just like your other income is.  So whether you used the $20k for rent or to go on a cruise, the tax treatment would be the same. If your ONLY income is that $20k, and you are single, then you would have $5,400 in taxable income after subtracting your standard deduction of $14,600.  The tax on that would be around $540 as you would be in the 10% tax bracket.  

How did you enter the stipend?  Is it being treated as self-employment income?  Do you have any other income?

If you are paying taxes on the income in another country, you my be able to claim the foreign tax credit.