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My daughter spent 10 months in Israel teaching English for the MASA ISRAEL

program. She received a monthly stipend. How does the IRS treat this when doing taxes?

3 Answers

  • 1 month ago

    The rules for filing a United States, U.S. tax return generally apply to you if you are a U.S. citizen or resident alien (Green Card Holder) and you live and/or work in a foreign country. When you start a free tax return on, you do not have to think about these rules. Answer a few simple questions and the tax app will select the correct tax forms for you based on your answers. will also help you complete and e-File the forms. If you pay taxes in a foreign country for your foreign earned income you might qualify for the foreign tax credit.

    Foreign Income and Filing a U.S. Tax Return

    If you lived and/or worked abroad during the Tax Year and you have gross income from worldwide sources that is at least the amount shown for your filing status, you must file a tax return. This also applies to you if you are a U.S. citizens working for the federal government (including the Foreign Service) and you are stationed abroad.

    These factors generally determine whether or not you must file a US tax return:

    Filing status

    Income you earned while working in a foreign country


    If you are a dependent of another U.S. taxpayer

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  • NA
    Lv 7
    1 month ago

    She won't be taxed by Israel under the US/Israel tax treaty.

    However, she wasn't treated as an employee, so this is self-employment income.  Use schedules C-EZ and SE when filing.

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  • 1 month ago

    If she is a US citizen, they will treat it like any other income. Should consult a tax professional that regularly deals with foreign income. The rules are not the same as for domestic income.

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