MASA ISRAEL AND TAXES?
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?
- Mr. InterestingLv 71 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 eFile.com, you do not have to think about these rules. Answer a few simple questions and the eFile.com tax app will select the correct tax forms for you based on your answers. eFile.com 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:
Income you earned while working in a foreign country
If you are a dependent of another U.S. taxpayer
- NALv 71 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.
- STEVEN FLv 71 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.