How to amend China treaty $5000 on Turbotax

To enter the negative amount in the Miscellaneous Income Line 21, you would:

• Under the Income & Expenses find the Less Common Income - Select Show more
• Select Miscellaneous Income, 1099-A, 1099-C
• Select Other reportable income
• On the next screen Select Yes
• Enter the negative number with the description of Form 8333

You will need to complete Form 8333 and mail it in with your return showing your Treaty-Based Return Position Disclosure

Thank you for the reply. But i guess the form was changed this year. I did not see "Miscellaneous Income" under "Less Common Income", neither the "show more" selection. Please see the screenshot.

Please advise. thank you!

The edit is not in the W-2 section of TurboTax.

Open your return:

1. Click on Wages & Income at the top of the screen
2. Scroll down to All Income and click on it if needed to open
3. Scroll all the way down to the bottom of the screen
4. Click on Less Common Income
5. Scroll all the way down to Miscellaneous Income, click start
6. Scroll all the way down to Other Reportable Income

I could not find the Wage&Income at the top of the screen. If I click on Job(W-2), it will be the W2 form, still cannot find the "miscellaneous income"

To enter the tax exempt amount in TurboTax online program, here are the instructions:

• Report your full income under the appropriate section. Then enter the treaty exempt amount as negative amount (e.g. -5000) under Federal Taxes / Less Common Income / Miscellaneous Income 1099A, 1099C / Other Reportable Income.  See image below
• Download and fill in a Form 8833 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf
• You cannot e-file.  You can still use the TurboTax program to prepare your tax forms, but you need to print them out and submit by mail along with the form 8833. 

This amount should show on line 8 of Schedule 1 and Form 1040. Although it is an offset, the IRS requires you to show that on your return for reporting purposes. 

Should it be Form 8833?

Yes. to claim an exception, it's the Form 8833  https://www.irs.gov/pub/irs-pdf/f8833.pdf

I've already filed my return and it was accepted. Is it in the same place when I try to amend the return? Thank you!

To clarify, did you file using Turbo Tax online?

@sophy

yes! 

@sophy  Then yes, it is in the same section on an amended return.

Thanks! But I could not find the Wage&Income at the top of the screen.

In your case, under Personal Income.

@sophy

Thanks for this detailed reply. However, in my case (University of Southern California), the federal wages has already been deducted 5000, e.g. state wage $15250 (box 16), but wages is $10250 (box 1). In this case, I dont need to enter the -5000, only need to attch 1042-S and form 8833, correct?

Yes, that is correct.  You would not need to make any negative adjustment because the employer has already done that for you by reducing the amount in Box 1, Form W-2.

Attach a copy of your 1042-S and Form 8833 to an amended return (Form 1040-X) that has no change to it. You will be able to enter an explanation or reason for the amendment that will print on page 2, Form 1040-X.

@bsun0802