Fulbright

[Lion EA]

So, a client/mom just emailed me...

"And, looking forward, when he [note: son/also client] (finally) gets his Fulbright -- how are those funds reported?"

Considering it's 27 December, funds might not arrive until 2021, but with my usual 2020 luck they might be in an account in the ethernet someplace that he actually can draw from -- constructive receipt.

Anyone have any experience with a Fulbright? I need to call my sister and try again to messenger live with granddaughters and finally eat breakfast/lunch but will start searching this afternoon.

[Max W]

According to the IRS ( https://www.irs.gov/individuals/international-taxpayers/fulbright-grants ) there is a good chance that a payment was received in December, as that is when the first payment goes out for a Fulbright Grant starting the following year. 

There are a lots of traps and pitfalls that could occur, such as, blocked foreign currency, foreign taxes paid, whether it is W-2 income or Other income, plus more.

 

[Lion EA]

And mom/son threw some more things at me. I did a pro forma with the things they said, things I knew. But, neither son nor mom know about the Fulbright funds, amount, timing, anything. He already has nearly $15,000 income for 2020 with NO withholding BEFORE the Fulbright, and most of it is SE. Thanks, Max, for the heads up about the timing. Knowing it might be available to him this month/this year lets me know to ask more questions. Going to email them right now.