My adult daughter worked at a school for most of 2022 and then from Sept to December worked in France as a teacher for 1000 a month. How do we put that in TT

[crr4000]

She worked in US for 9 months, France as teacher for 3months as far as 2022 goes. It was a program where you live at the school and you get a stipend. 

[hbl3973]

crr4000,

A stipend is a form of taxable scholarship.  Ideally it should show up in your tax return as scholarship income.  However, it can be reported as other income, too.  Take a look at

https://ttlc.intuit.com/community/retirement/discussion/re-ira-contribution/01/2889844#M189216

to see two ways to enter it.  You will need to convert from Euro to US Dollars.  It is acceptable to use a Dec 31 conversion rate obtained from the Treasury Department website 

https://fiscaldata.treasury.gov/datasets/treasury-reporting-rates-exchange/treasury-reporting-rates-...

which lists and exchange rate factor of 1 USD equals 0.936 Euro.  (Divide Euros by .936 to get USD.)

[crr4000]

Thanks,  She isn't a student. The school pays teachers to teach English and there is a pay deposit monthly. I'm not sure if they think of it as a stipend, she says they call it that and then they say salary in literature. She isn't a French citizen working there thoiugh. I don't think she could say it's a scholarship since isn't that a gift of money to pay for things? I think a friend of hers used "other income" once when she worked out of the country. She doesn't qualify to not put it on taxes because she wasn't there long enough. I will check out the links.

Also does she even have to claim it? She found info saying if under 100.000, not taxable here. So confusing to a boring 9- W2 type of person. ; )

[hbl3973]

crr4000,

Don't confuse scholarship with free gift.  Scholarships can be in the form of grants or stipends and can be taxable even in the pure form you are thinking.  They just are monies allocated to facilitate learning and training.  As a US citizen, she is required to report all world-wide income including the payments she received in France.  I have no idea where that 100.000 came from, but I personally would ignore it unless you can track down a US-France treaty provision to that effect.  If the teaching assignment was billed as a training opportunity, I would definitely want to report the payments as a stipend.  If it was a regular job, it was earned income and you should report it via the Miscellaneous Income instructions in the link.  I haven't checked if that would then generate additional tax for not having social security and medicare withheld.

[crr4000]

They take SS out of her pay but that's it. They don't have the tax forms we do of course. They just give her totals she can put from Euro to dollar. I told her to use her bank records and just try to be accurate as she can. What is stated below is confusing because when you go to fill out forms, it says all income has to be included but she said this is why many expats don't file. I just try to be honest all the time.

In TT and online it said

Foreign Earned Income Exclusion    American expats are taxed on their worldwide income. However, this benefit allows expats, including teachers, to exclude some of their foreign income from their American taxes. In 2022, expat teachers can exclude $122,000 from their U.S. taxes. That may be your entire foreign salary.

https://www.ustaxhelp.com/a-guide-to-teaching-abroad-and-filing-taxes-in-the-us/

[DaveF1006 · Accepted solution]

For the time she spent in France, she would need to report this income as foreign income in the miscellaneous income of the return. After reporting this, your daughter may be able to claim a foreign tax credit if she paid one to the French government.  To first report the income;

1. Click Federal > Wages & Income>all income>
2. Go to the last selection, Miscellaneous Income and click Start
3. Go to the last option, Other reportable income and click Start
4. When it asks, "Any other reportable income?" say yes and  indicate this is income from a foreign employer

Now to claim the credit:

1. Open Turbo Tax
2. Go to federal>deductions and credits>estimate and other taxes paid
3. Foreign taxes >start
4. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
5. Answer the questions in the next screens until you reach a screen that talks about income type. This will be the general category of income. 
6. Next screen is where you add the country your foreign income was earned in. 
7. Next screen will ask you what your source income earned in that country. 
8. You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. 

@crr4000 

[hbl3973]

Do follow the instructions of DaveF1006.  Your daughter doesn't qualify as an expat for 2022. See

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-pre...

for how that is determined.

[crr4000]

I'm sending her the info. It's a first for her and I don't think the other teachers give the best advice. Some don't bother to file, they feel they get SS taken out there, they don't need to pay taxes here so why bother. I've read conflicting advice but you still should file.

[crr4000]

I will bookmark this to look at when I have more time. Thank you. So much info and some seems confusing if you try to read everything at once.  I like how you put steps in. ; ) Even this year she'll only have 4 months there I think before school ends, it's not like some teachers who actually have an apartment and got job as an actual full time teacher which is ongoing.

I know she met students from US that don't bother to file here but I told her not to listen to them. Include it with her regular W2 from last job. Always cross your T's and dot your "i"s.

It's very hard for her to get any actual paperwork but she does have her monthly pay amounts and that is what is important.

Thank you again