For international organizations, how do we add wages to 1040 but also exemption w/ executive order #? World Bank employee with Green Card. Income is exempt.

[too_much_tax_paperwork]

There is no W2 so can do replacement.  Need to report wages due to Green Card.  Also, need to add an 'exemption' and cite Ex. Order No. 9751.  When I create my own W2 and indicate 'international organization' in TurboTax, it still does taxes.  This is only true for US citizens.  Trying to follow instructions from IRS document on "Employees of Foreign Governments or International Organizations".

[DJS]

From the IRS it appears that you're exempt from self-employment taxes but not necessarily from income taxes. You should check with HRD. 

Green Card Holders (Lawful Permanent Resident)

If you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings.

If you expect to have income tax due at the end of the year, you must make estimated tax payments because your compensation is not subject to withholding. Estimated payments are made using Form 1040ES, Estimated Tax for Individuals. Forms are due on the following four dates: April 15th, June 15th, September 15th, and January 15th of the following year. There is a penalty for failure to make estimated tax payments on a timely basis.

[tax_fellow]

Did you ever figure this one out? TaxSTCFAQs.pdf (worldbank.org) this says it is exempt and not reported. But on the reporting bit, I presume that is the World Bank not reporting. So I would imagine as the individual you would still have to report it somewhere. 

[PattiF]

See this IRS article that references Employees of a Foreign Government or International Organization - How to Report Compensation.  There is a way to report this in Turbo Tax as other income.

1. Federal >Wages and Income
2. Scroll down to Less Common Income
3. Select Miscellaneous Income
4. Select Other reportable income, select ‘yes’ and you will be prompted to enter the Description and amount. For the description Wages from being an employee of a foreign government not subject to FICA taxes and then the amount.

@tax_fellow 

[tax_fellow]

Thanks @PattiF . I tried this but it in the  turbotax assessment it ends up reflecting that I owe taxes and yet compensation from the World Bank for green card holders is neither subject to federal nor state taxes and is exempted from social security and medicare contributions. 

[DJS]

Did you receive a W2 from the IBRD? 

Aliens Who Obtain or Retain Immigrant (Lawful Permanent Resident) Status

If you sign the waiver provided by section 247(b) of the Immigration and Nationality Act (USCIS Form I-508) to obtain or retain your lawful permanent resident status (green card), you no longer qualify for the tax exemption under U.S. tax law from the date of filing the waiver.

Note: The filing of USCIS Form I-508 has no effect on a tax exemption that is not dependent upon the provisions of U.S. tax law. You do not lose the tax exemption if you file the waiver and meet either of the following conditions:

• You work for a foreign government and are exempt from U.S. tax under an income tax treaty, consular agreement, the Vienna Conventions, or any other international agreement between the United States and your foreign government employer.
• You work for an international organization and the international organization agreement creating the international organization provides that alien employees are exempt from U.S. income tax. Two international organizations that have such a provision are the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank). 
• U.S. citizens and resident aliens employed by a foreign government or international organization in the United States should refer to Employees of a Foreign Government or International Organization - How to Report Compensation  for instructions on how to file their U.S. federal individual income tax returns.

Green Card Holders (Lawful Permanent Resident)

If you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings.

If you expect to have income tax due at the end of the year, you must make estimated tax payments because your compensation is not subject to withholding. Estimated payments are made using Form 1040-ES, Estimated Tax for Individuals. Forms are due on the following four dates: April 15, June 15, September 15, and January 15 of the following year. There is a penalty for failure to make estimated tax payments on a timely basis.

[DJS]

Are you aware of the IBRD's tax allowance system?

https://thedocs.worldbank.org/en/doc/430251375284206438-0220012011/original/LoAEnclosureTaxAllowance...

[doing_my_taxes_now]

I am in the same situation. I am unable to report my income on TurboTax, and to remove it from my total taxes.

[DaveF1006]

To clarify, how did you initially report your income in Turbo Tax? Also what type of an exempt organization are you part of?

@doing_my_taxes_now 

[doing_my_taxes_now]

I work as a consultant at the World Bank. I do not receive any W-2 or other tax form, only a letter from my employer saying I am tax-exempt that I could show to the US Revenue authority.

I have been scrolling Turbo-Tax blogs, and tried many methods to declare it, but none are allowing me to remove the taxes from this income.

I tried the following methods, in addition to try to file as an independent worker -- none worked to remove the taxes/ add my tax exemption : 

a)

1. Select Miscellaneous Income
2. Select Other reportable income

b)

1. Scroll down to Other Common Income
2. Select Income from 1099-MISC

c)

1. Scroll down to Less Common Income
2. Select Income from Foreign Earned Income and Exclusion

d)

1. Scroll down to Less Common Income
2. Select Income from Miscellaneous Income, 1099-A, 1099-C

e)

1. Scroll down to Less Common Income
2. Select Income from 1099-SA, HSA, MSA

[Vanessa A]

a) is the correct way to report this.

This income IS taxable as wages.  It is just not subject to Social security and Medicare taxes. 

If you are a green card holder working for a foreign government or international organization, you g...

When it says it is not subject to Self-Employment taxes it is talking about Social Security and Medicare taxes.  It is still subject to ordinary income taxes. So you should not try to remove it from taxable income.  Just it should be reported as Self-Employment income.  

[doing_my_taxes_now]

It is indeed exempt from taxes. Our organization pays a lot less income to people who are Permanent Residents and Green Card holders than US Citizens to adjust for the non-taxable vs taxable income disparity. In addition, we are provided an official letter from our organization to show IRS in case we need an explanation on why our salary is not taxed. I also reached out to our taxes department, and they confirmed my salary is tax exempt. However, they say to refer to IRS on how to report it. I tried may times calling IRS, and they do not provide any legal help over the phone, it is impossible to get a hold of someone who could help.

All I need is find a way in TurboTax on how I can declare it as a wage, but remove it from my overall taxes due.

[doing_my_taxes_now]

• Employees of foreign governments or international organizations: 
  • Employees of international organizations
    •  Individuals who obtain or retain immigrant (lawful permanent resident) status:

"You do not lose the tax exemption if you file the waiver and meet either of the following conditions:

• You work for a foreign government and are exempt from U.S. tax under an income tax treaty, consular agreement, the Vienna Conventions, or any other international agreement between the United States and your foreign government employer.
• You work for an international organization and the international organization agreement creating the international organization provides that alien employees are exempt from U.S. income tax. 
• U.S. citizens and resident aliens employed by a foreign government or international organization in the United States should refer to Employees of a foreign government or international organization - How to report compensation for instructions on how to file their U.S. federal individual income tax returns."
  
  https://www.irs.gov/individuals/international-taxpayers/employees-of-foreign-governments-or-internat...

[DaveF1006]

Under the World Bank Group Tax Allowance System, non-U.S. citizens assigned to work in the U.S. do not have to pay U.S. income taxes on their Bank income. For that reason, the Bank's compensation system provides for net salaries - salaries that are net of taxes. US citizens are required to pay all income and social security taxes.

To report the wages and then exclude them, here is how to report.

1. Open your Turbo Tax return
2. Go income and Expenses
3. Less Common income 
4. Miscellaneous Income
5. Other income not already reported on a W2 or 1099
6. Answer and record all information in this section.  When it asks for a reason code, choose Code G.
7. Once complete, this will show up as wages in Line 1G of your 1040 and also will appear in Form 8919.

Now, since you have this reported, you will now exclude under terms of the agreement.

1.  Under miscellaneous income, scroll down to other reportable income.
2. As a description, type in World Bank Excludable income and then represent the amount paid with a minus sign in front of it. This will completely offset the income.

[doing_my_taxes_now]

Thank you so much! This is the best answer and resolved my issue, I was able to declare without being taxed on the balance. Doing this tells me I am required to "fill and send Form SS-8". Is this a form I really have to file in my case?