To claim the tax treaty on a resident return:
- File as a resident alien for tax purposes using Form 1040.
- Complete all applicable income lines and include any amounts that are tax treaty exempt.
- On Line 21 (Other Income), enter in a negative number for the total amount of the tax treaty exemption being claimed.
Here's how to enter it in TurboTax.
·
Click the Federal Taxes tab ( Personal in the Home &
Business version)
·
Click Wages & Income. (Personal income in the H & B
version)
·
On the screen "Your 2017 Income Summary," scroll all
the way down to the last section, "Less Common Income."
·
Click the Start or Update button for the last topic,
"Miscellaneous Income, 1099-A, 1099-C."
·
On the next screen, "Let's Work on Any Miscellaneous
Income," scroll down and click the Start or Update button for the last
topic, "Other reportable income."
·
The next screen asks, "Did you receive any other taxable
income." Click Yes.
·
On the next screen, "Other Taxable Income," enter a
description and the amount. Click Continue.
·
On the next screen click Done.
The income will be reported on Form 1040 line 21 with the
description that you entered.
