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...