Deductions & credits

If you are an F-1 visa holder, you are considered a non-resident alien for the first 2 (non-students) or 5 (students) calendar years because you will be exempt for the Substantial Presence Test (SPT) .

Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.

However, since 2015 was your 6th year in the USA, you will be considered a US resident for income tax purposes.

 You will need to enter both the 1042-S and the amount of treaty exemption (if additional treaty exemption is available)on your Form 1040 if you are a US resident alien. If you received a 1042-S then the IRS has also received a copy of this 1042-S.

You will enter the 1042-S income under other earned income (or scholarship income if it is for a scholarship grant)and you will enter the amount of the treaty exemption (if any available) as a negative amount under other miscellaneous income. You may also need to attach Form 8833 to your tax return. (Attaching this form will require that you mail in your return. You will need to select - file by mail under the file tab.)

Since Form 8833 is not supported by TurboTax, here is the link to the IRS website regarding claiming a tax treaty benefit:

https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits

To enter your 1042-S for wages under other miscellaneous income:

1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose "show more", then Miscellaneous Income
6. Choose "Other Income not already reported on a Form W-2 or Form 1099 " 
7. Select - "Yes" for "Other Wages Received"
8. After 3 screens, select "Yes" for "Any other earned income".
9. On screen titled " Enter source of other earned income" - select " Other"
10. Input the "1042-S wages" and the amount on the next screen (screenshot #1)

If this is scholarship income.

To enter your 1042-S related to your scholarship into TurboTax:

1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Deductions and Credit”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Education”
5. Choose "show more", then Expenses and Scholarships (Form 1098-T)
6. You will need to choose the student this Scholarship relates to and select "edit"
7. Under the Education Summary page, select "Scholarships and Grants" - edit
8. Say "yes" - to question "Did (name) receive a scholarship or grant in 2015?"
9. Enter amount as "Other Scholarships/Grants/Fellowships (screenshot #2)

You will now need to enter a negative amount for the treaty exemption under other miscellaneous income

To enter your treaty exemption under as other miscellaneous income:

1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose "show more", then Miscellaneous Income
6. Choose "Other Reportable Income" and enter this information here under other taxable income (screenshot #3)
7. You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20) and the exempt amount as a negative number.