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Generally, salary, grants and allowances paid by the UN are exempt from income tax. For US citizens, this is done indirectly, with income tax paid, and subsequently reimbursed by the UN to ensure that there is income parity between staff members of similar salary but different nationalities.
International organizations are exempt from U.S. tax on all U.S. source income.
Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.
1. What foreign income is taxable on my U.S. return? If you are a U.S. citizen or resident, you are required to report your worldwide income on your tax return. This means that you must not only report income you receive from U.S. sources, but you must also report income you receive from foreign sources.
However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($105,900 for 2019, $107,600 for 2020, $108,700 for 2021, and $112,000 for 2022). In addition, you can exclude or deduct certain foreign housing amounts.
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Foreign Tax Exempt Organizations A foreign organization that is a tax exempt organization is not subject to a withholding tax on amounts that are income unrelated to business taxable income.
If you are resident in two countries at the same time or are resident in a country that taxes your worldwide income, and you have income and gains from another (and that country taxes that income on the basis that it is sourced in that country) you may be liable to tax on the same income in both countries.
IRS Announcement: US Will Automatically Share Taxpayer Information with Other Countries Under IGAs. On October 2, 2015, the Internal Revenue Service announced success in meeting a September 30 deadline regarding the exchange of taxpayer information between the US and certain foreign governments.
Heads of households earning less than $18,800 (if under 65) and less than $20,500 (if 65 or older) are also exempt. If you're over the age of 65, single and have a gross income of $14,250 or less, you don't have to pay taxes.
If you committed a non-willful violation which was not due to any reasonable cause, you may face a civil penalty of up to $10,000 per violation. If you committed a willful violation, the penalties can rise to $100,000, or 50% of the foreign account balance at the time the each violation occurred.

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