In re-reading the thread -you state: The $8000 non-taxable income is already excluded from my W-2.
If your tax forms already have the amount excluded, there is nothing extra to report. Your goal is to report taxable income to pay the correct tax. You can e-file without issue.
If your 1042 includes the taxable income, then you should make a negative entry and file the treaty statement. You will mail the return.
Reference: Claiming Tax Treaty Benefits
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