If you qualify for claiming the tax treaty, here are the steps to claim (online):
- Report your full income under the appropriate section. 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 website 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 by mail all tax forms along with the form 8833.
