It depends. Box 5 report exemption codes that are used for informational purposes. If there is a tax rate listed in Box 4b, then Box 5 is an exemption code. Some of the more common codes are.
00 - amount is exempt from tax withholding
14 - nonresident with an F or J visa and has a scholarship
30 - all other nonresident
Exemption code - the reason for the tax rate. If there is a number in Box 5, then it is not taxable. It is merely a code similar to a withholding allowance on a W2. Found at this link.
[Edited 03-30-2021|07:17 PM PST]
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