I am on a J-1 visa and previously filed Form 1040-NR for tax years 2022 and 2023. For 2024, I will need to file Form 1040. A portion of my salary was exempt under the U.S.-India tax treaty (Article 22) and is reported on Form 1042-S, while the remaining taxable salary is reported on my W-2 from the university.
When filing Form 1040, if I report the 1042-S income as 'Other Income' and enter it as a negative amount on Schedule 1, will this adjustment carry over to line 8 of the main 1040 form? Additionally, after applying the standard deduction to my W-2 income and factoring in the negative income adjustment based on the tax treaty, would line 15 of Form 1040 reflect a negative amount or default to zero? Is this appropriate? Do I need to include Schedule OI?
Thank you!
