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Level 1
posted Apr 11, 2020 2:07:31 PM

Resident alien eligibility for tax treaty and how to include it in Turbo Tax ?

Hi. I am a student from India currently on a F1 visa. For a tax purposes, I am now considered as a resident alien. I want to know whether I can still use the tax treaty exemption? I am using Turbo Tax to file my taxes, how can I include this information ? 

0 5 1949
5 Replies
Expert Alumni
Apr 11, 2020 2:37:26 PM

You may qualify.  Please read the blue link carefully to verify if you meet the requirements.  Click here: https://www.irs.gov/pub/irs-pdf/p901.pdf, page 19 under India

 

 

To enter the tax treaty exemption in the program, here are the steps: 

  • Enter your income as usual. 
  • 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
  • Download and fill in a Form 8833 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 them to IRS by mail along with Form 8833.

@newuser4678

 

Level 1
Apr 14, 2020 8:39:34 AM

@LinaJ2020  It says that the individual must file 1040NR or 1040NR-EZ (which I guess are Non Resident forms). Since I have been here for more than 5 years now, I can not use 1040NR (at least this is my understanding). 

Expert Alumni
Apr 14, 2020 9:05:14 AM

What date did you first arrive in the US on an F1 student visa?

Level 1
Apr 14, 2020 11:07:02 AM

@KarenJ2  Mid August 2014

Expert Alumni
Apr 14, 2020 1:18:57 PM

You will be a nonresident for five years 2014-2018.  Starting from January 1st, 2019, if you stay more than 183 days within the year, you will be a resident for tax purposes. 

 

@newuser4678