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Get your taxes done using TurboTax
Thank you for your prompt response and the guidance provided.
However, I'd like to clarify my situation further regarding the $5,000 income. Under the tax treaty between the U.S. government and the government of China, specifically under article 20(c) and the saving clause of article P2 (shown on the form W-9 that I signed), the first $5,000 earned at the university by a student from China is considered non-taxable. This is also reflected in my Form 1042-S, where the tax rate is indicated as "00.00", implying no tax was withheld since it's treaty-exempt.
After following your advice and entering the $5,000 as "Other Reportable Income" under Miscellaneous Income in TurboTax, it appears that this amount is being treated as taxable income, which contradicts the treaty's stipulation.
Could you please advise if there's an alternative way I should be reporting this income to accurately reflect its non-taxable status under the treaty? Or is there a specific section within TurboTax where I can claim this exemption to ensure it is not taxed? Or should I just ignore this and only report income shown on the W-2?
Thank you once again for your assistance.