Can I claim the China-US Tax Treaty for the year changing F-1 to H1b? Am I a resident alien or nonresident alien?

In the first half-year of 2020, I was a nonresident alien on F1 OPT, and I got my non-cap H1b on 6/15/2020. So at the end of 2020, I have stayed in the US for more than 183 days and passed SPT. For the tax year 2020, should I file as a resident alien or dual-status alien? Besides, since I was on F-1 for the first half-year, can I claim the China-US Tax Treaty 20(c) to exempt my first $5000 income from federal tax? How can I do that using TurboTax?

 

Thanks a lot!

 

LinaJ2020
Expert Alumni

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You are considered as a resident for the year of 2020.  If you meet the tax treaty requirement, you can claim the exemption on your Form 1040.  Both nonresidents and residents can apply the tax treaty benefit on their taxes as long as they meet the requirements.  

 

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 from the 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 them to IRS by mail along with Form 8833.

 

 

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Thank you very much for your reply! I wonder that besides form 8833, are there any other documents I need to submit to prove that I was on F-1 before 6/15/2020? 

DaveF1006
Expert Alumni

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You might include some paperwork to prove you were on F-1 prior to becoming a resident alien. The IRS loves documented proof and paper trails. 

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Got it! Thank you very much!