As a J-visa holder, you are considered as a nonresident for two years from the year you first enter the US. (2015-2016) In your situation, during 2017, you are treated as a resident for tax purposes if meet the Substantial Presence Test SPT. As a resident, you are allowed to apply the tax treaty exemption on your Form 1040, if you meet the criteria.
If you qualify for claiming an exemption from a tax treaty, in the TurboTax program, you would first enter your income in the appropriate section. Then enter the treaty-exempt amount as a negative amount under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ". You will have to file a Form 8833 to claim an exception. You cannot e-file with TurboTax, but can print and submit all the tax forms along with the form 8833 by mail.
To review US-China treaty under Professors, Teachers, Researcher, please see below:
An individual who is a resident of the People's Republic of China and who is temporarily in the United States primarily to teach, lecture, or conduct research at a university or other accredited educational institution or scientific research institution is exempt from U.S. income tax on income for the teaching, lecturing, or research for a total of not more than 3 years. This exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest.
