Good day. I am a US citizen who has been living abroad for the past decade. I have filed joint tax returns but have not had to pay any taxes. Now I am about to take up a one year visiting position at a US university and will be receiving a grant through a non profit which covers living expenses, housing, transportation, schooling costs, cost of a research assistant, university health insurance, car leasing purchase. The state I plan to move to has state income tax. Also, I do not have any income, savings or major assets and have personal loans from individuals to the tune of USD$10K. My wife is not currently employed. What is taxable and what isn't? Is there any way not to pay any taxes or at least to pay a token amount? Thanks.
Tax and returning to USA
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If you're a US citizen, it's all taxable and you won't be able to claim the FEIE or foreign tax credits while you are resident in the US and not paying income tax somewhere else. There may be some relief here: https://www.irs.gov/charities-non-profits/private-foundations/grants-to-individuals for the grant portion of your remuneration.
It depends on the state whether or not they conform to the IRS rules on grant income.
Cheers,
Bev
It depends on the state whether or not they conform to the IRS rules on grant income.
Cheers,
Bev
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