TAXES

Income Tax

Please remember that Fulbright grants are subject to U.S. income taxes! U.S. citizens must report their worldwide income on their Federal income tax returns. Living or earning income outside the United States does not relieve a U.S. citizen of responsibility for filing tax returns. However, U.S. citizens living and/or working abroad may be entitled to various deductions, exclusions, and credits.  

For tax assistance, you may contact the International Taxpayer Service Center in Philadelphia (operational Monday through Friday, from 6:00 a.m. to 11:00 p.m. Eastern Time):

• Phone: +1-267-941-1000 

• Fax: +1-681-247-3101   

For more information please visit: https://www.irs.gov/uac/Contact-My-Local-Office-Internationally. In addition, you can visit the IRS home page for tax information and download forms.  

For liability reasons, the Commission must refer you to the IRS for specific information on declaring Fulbright grants:

• • • http://www.irs.gov/Individuals/International-Taxpayers/Fulbright-Grants provides an overview on what to take into consideration when reporting a Fulbright grant.

    • Publication number 970 entitled “Tax Benefits for Education”. See especially Chapter 1 on how to determine what constitutes a tax-free scholarship or fellowship. 

    • Publication number 54 entitled “Tax Guide for U.S. Citizens and Resident Aliens Abroad”. The section on foreign currency in Chapter 1 includes a section on in which currency Fulbright grants should be declared.

    • Publication number 514 entitled “Foreign Tax Credit for Individuals."

In most cases, you do not need to declare your grant to the French tax authorities if you are doing so in the U.S. You may consult the Franco-American Tax Treaties (articles 20 and 21 in particular) for more details : https://www.irs.gov/businesses/international-businesses/france-tax-treaty-documents. 

Another reference is the U.S.-French Social Security Agreement of 1988.

Finally, please note that neither the Institute of International Education, the Fulbright Commission in your host country, nor the Department of State, nor IIE can issue a 1099 or W2 or withhold taxes from grant payments.

The Fulbright Grant Authorization document that you signed before starting your grant should outline the funds you received during your grant period. You can also check your French bank statements to see how much was deposited in any given year. 

Remember, you only need to declare the amount issued during the calendar year, January 1 to December 31, in a given tax return.

See also these resources for Fulbrighters: 

• https://eca.state.gov/files/bureau/fulbright_grants_and_us_income_taxes.pdf

• https://us.fulbrightonline.org/current-fulbrighters/tax-information 

• https://www.fulbright.at/news/detail/2023-tax-workshop-and-us-taxes-101-for-americans-abroad

• https://www.youtube.com/watch?v=O1FP_Jjfhlo

FBAR Filing

Grantees may also be required to file a Foreign Bank Account Report with the US Treasury Department.

Who Must File the Foreign Bank Account Report (FBAR)?

“A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.”

For more information and to file your FBAR online.