Does tax treaty (with Bulgaria) income (that has not been taxed) from 1042-S need to be reported when filing as a resident alien for tax purposes?

delstam · ‎June 6, 2019

Initially entered the US as a nonresident alien for tax purposes and now a resident alien (since the substancial presence test was passed) on an F-1 visa (visa status remained unchanged). Form W-9 has been submitted to IRS by employer and for the first $9,000 for 2018, tax was not withheld. In publication 519, it says that if the income is exempt from U.S. tax, it does not need to be reported on form 1040. Is that the case?

KarenJ · ‎June 6, 2019

As the income is included in your W-2, you will need to subtract the $9,000 in another area of your tax return.

After entering your W-2, go to Wages & Income at the top of the page.
Click on All Income
Scroll down to Less Common Income
Click on Show more
Scroll Down to Miscellaneous Income
Click on Start
Scroll down to Other reportable income
Enter the treaty name and Article number as the description and enter a negative $9,000.

delstam · ‎June 6, 2019

Actually, the income on form 1042-S is not included in W-2, since it's income that is not subject to federal withholding. In that case, what would be appropriate to do?

Does tax treaty (with Bulgaria) income (that has not been taxed) from 1042-S need to be reported when filing as a resident alien for tax purposes?

Deductions & credits

Deductions & credits