It is important for you to discuss this issue with your Israel accountant. Their determination on how your U.S. income is taxed in Israel will determine how your U.S. tax return is prepared. Based on our experience, non-resident filers (Form 1040NR) are first reported in the U.S. and then in Israel. U.S. citizens & green card holders (Form 1040) are first reported in Israel and then in the U.S. Additionally, we recommend making all Israel tax payments (current & prior year) by December 31st, 2021.