I moved from Israel to US on permanent resident visa in 2022, I recieved fellowship in 2023, do I need to report it and can I exclude it from tax?

[sche454178]

I know treaty between US and Israel exists, but I am not sure if it applies to my situation , I recieved  fellowship in 2022-2023 which is not taxable in Israel, whole 2023 I was in US as permanent resident.

[Vanessa A]

No.  If you are a resident alien, then you are subject to the same tax rules as a US citizen.  You would not be able to claim a tax treaty for 2023 if you were a resident for all of 2023 on any type of income you receive. 

"Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. federal tax on income from a scholarship or fellowship grant". Claiming Treaty Exemption for a Scholarship or Fellowship Grant

[sche454178]

Thank you for reply, I know this, but there is also sitations when becoming resident alien you are still exempt from paying taxes on educational stipends, please take a look at this article of US - Israel tax treaty , what do you think?

[sche454178]

Thank you for citing IRS website, I looked at it and after the sentence you quoted there is another one:

"A student (including a trainee or business apprentice) or researcher who has become a resident alien for U.S. federal tax purposes may be able to claim benefits under a tax treaty that apply to reduce or eliminate U.S. federal tax on scholarship or fellowship grant income."

Here is a somwhat similar situation where resident alien was exempt from paying taxes (if I understood the thread correctly): https://ttlc.intuit.com/community/taxes/discussion/re-as-a-new-resident-alien-do-i-need-to-report-a-...

[DaveF1006 · Accepted solution]

No. This is not stipulated in the US/Israel tax treaty so this scholarship is fully taxable to you as a US resident.

@sche454178 

[sche454178]

Thanks for answer