You will need to upgrade to TurboTax Deluxe online edition to complete your transaction.
In TurboTax Free Edition, here are the instructions:
- Report your full income. Then enter the treaty exempt amount as negative amount ( -5000) under Federal Taxes / Less Common Income / Miscellaneous Income 1099A, 1099C / Other Reportable Income.
- Follow prompts to upgrade.
- Fill in Form 8833 from the IRS website to claim an exception. https://www.irs.gov/pub/irs-pdf/f8833.pdf
- Submit everything by mail to the designated IRS location as instructed on your Form 1040 print out.
