Discussion:Fulbright Scholarship as Foreign Earned Income

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Discussion Forum Index --> Tax Questions --> Fulbright Scholarship as Foreign Earned Income

Andyblue (talk|edits) said:

15 May 2007
My brother, a professor at a US university, has been awarded a Fullbright grant to do research in Mexico starting in August, 2007. He will be in Mexico for at least 330 days during the 12-month period beginning when he arrives in Mexico. He will rent out his home in the US, and his wife and children will be with him in Mexico the entire time. He would seem to meet all of the tests to exclude the income as foreign earned income, except possibly the issue of his tax home. The employment is not indefinite, since it is specifically for 10 months and the Fullbright grant will replace his normal salary at the US university. However, for various reasons he will be in Mexico long enough to qualify for the physical presence test. What can he do to make the case that his tax home is in Mexico while he is performing his research under the Fulbright Grant?

Riley2 (talk|edits) said:

15 May 2007
Not sure that he really qualifies. Wages or compensation received from the Federal government does not qualify for the Sec. 911 exclusion. I believe that Fullbright scholars are paid by the US State Department.

Andyblue (talk|edits) said:

15 May 2007
Would he then be eligible for travel and living expenses away from home, since the position is temporary?

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