Most international students are not eligible to claim education tax credits. International students who may be eligible are:
- Permanent residents married to a U.S. citizen
- Permanent residents
The U.S. - China TaxTreaty states that that students can be exempt from tax. This is not the same as a tax credit.
ARTICLE 20 (Students and Trainees)
A student, business apprentice or trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first- mentioned Contracting State solely for the purpose of his education, training or obtaining special technical experience shall be exempt from tax in that Contracting State with respect to: (a) payments received from abroad for the purpose of his maintenance, education, study, research or training; (b) grants or awards from a government, scientific, educational or other tax-exempt organization; and (c) income from personal services performed in that Contracting State in an amount not in excess of 5,000 United States dollars or its equivalent in Chinese yuan for any taxable year. The benefits provided under this Article shall extend only for such period of time as is reasonably necessary to complete the education or training.
TIP:
You may want to complete Form W-8BEN, claim a tax treaty, and give it to your school and / or and employer(s). This will help avoid the automatic higher withholding rate when payments are made to you in excess of $5,000, which was mentioned in the treaty. Download the form from the link provided above and complete it on your own outside of TurboTax.
How to file a tax return with Form 8833
You'll need to file your tax return by mail. Unfortunately, you can't eFile your return with Form 8833, and you shouldn't eFile your return separately and send in Form 8833. Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), cannot be electronically filed.
