I have received an offer for a postdoc in Europe. The postdoc gets paid a scholarship that is not taxed in the European country. I will be living in this country 12 months out of the year and will receive full social security benefits from this country. Will I need to pay US taxes?
When I look at the IRS form 2555 (which you fill out to determine if you are eligible for the foreign income tax credit), line 13b states that if you do not pay income tax you are not a bonafide resident and therefore cannot claim the foreign income tax credit.
Also, if I have to pay US taxes, will I be considered self employed? Which I believe would mean that I would also have to pay the employer's contribution to social security.