How to amend China treaty $5000 on Turbotax

Forum|Forum|6 years ago
March 5, 2020
3 replies
13 views

Hello,

I am eligible for the US-China treaty $5000 exemption. I already filed tax return on Turbotax, but I forgot to add the treaty. I found this answer regarding to amendment:https://ttlc.intuit.com/community/tax-credits-deductions/discussion/form-1042s-on-income-tax-treaty-for-resident-alien-f1-visa/00/118366

When I tried to amend on TurboTax, I edited the W-2 form, under "Less Common Income" I did not find "Miscellaneous Income". I tried to add a row under Box 14, but could not enter the negative number (-$5000). Please advise how can I amend the 2019 tax return for the treaty exemption!

Thank you!!

Kate

TurboTax Free Edition Online

Best answer by KarenJ2

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

Open your return:

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

klehnhardt

Level 10

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

litingktAuthor

Level 2

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!

KarenJ2Answer

Level 13

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

Open your return:

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

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

linaj20201

Level 14

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.

bsun0802

Level 2

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?

DianeW777

Level 15

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

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

sophy 11

Level 2

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!