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thanks, nkm, this is much more helpful! do you know which tax form or separate form would be used to report the foreign income or how one would prove that taxes have been paid on it? i think i have to go to a tax accountant anyway, but i at least want to get a handle on the situation! thanks...

no, why would he set aside 40%? He's already been taxed on this income in the originating country, so it shouldn't be a problem, right? I don't understand why this is "unlikely to end well". Could you please clarify or explain?

I am a graduate student US citizen who receives a fellowship stipend, and my husband is a GC holder who has a job abroad. He lives in the US but he works long-distance for his company in another country, and they pay him by putting money on his work debit card. Can anyone tell me what forms we...