UK PhD Stipend - taxable in the US

Hi,

I am a dual UK-US national. I was born in the US (California), but moved to the UK about 1 month after I was born and have lived in the UK for the last 30 years.

I have received an untaxed stipend for my PhD work in the UK. Does anyone know if this money counts as taxable income for the US? It seems incredibly unfair that I do not have to pay tax in the UK, but would have to pay tax in the US despite me never having lived there.

The US-UK tax treaty (2001) Article 20 appears to state that this income is untaxed - can anyone confirm this?

If I am required to pay tax, are there any exclusions that I can make from the income, also, what is the likely percentage of tax that I may have to pay.

Thanks,

Dan Scott

You should be able to use the foreign earned income exclusion, which means you won't need to pay any tax on it. Unless your PhD stipend is a whole lot more than mine was. (You can only exclude up to something slightly over $80000.)

Hi,

Thanks for the reply. I still have to file a return, right? Because the income required for filing is counted before the foreign exclusion?

It's a lot less thatn $80000, so no problem there

Thanks,

Dan

Yes, I think you need to file. But I'm not an expert by any means. Hopefully the experts will be along soon!