33.3 How Fulbright Awards Are Taxed
Most Fulbright awards are treated as taxable wages for teaching, lecturing, or research. If you are abroad over a year, you may be able to claim the foreign earned income exclusion to avoid tax on the grant (Chapter 36). If you do not qualify for the exclusion, your overseas stay is temporary, and you intend to return to your regular teaching position in the United States, you may deduct the cost of your travel, meals, and overseas lodgings as miscellaneous itemized deductions subject to the 2% of AGI floor (Form 2106 and Schedule A of Form 1040). Foreign income taxes paid on taxable Fulbright wages are eligible for the foreign tax credit (36.14).
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