AmyC
Employee Tax Expert

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The US- India treaty article 21 states that income from India for your education are not taxed. Other income items may be taxable.

The 1042-S scholarship income must be reported as scholarship income and then excluded by the treaty.  

 

To enter your information:

Include the income when you enter your 1098-T - add the 1042-S income to any other scholarship income for box 5 scholarships.

 

To exclude the income:

  1. Open to federal income
  2. Locate Miscellaneous Income, 1099-A, 1099-C, Start
  3. Scroll to the bottom
  4. Other reportable income, Start
  5. Other taxable income?
  6. Select YES
  7. Description: Treaty exemption article 21 with India
  8. Amount, enter your negative amount, use a minus sign in front.
  9. Continue
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