If you are a US resident for tax purposes, you can claim the tax treaty exemption on your tax return if you meet the criteria. Please see https://www.irs.gov/pub/irs-pdf/p901.pdf- and review under the appropriate category.
To report your Form 1042S information, in TurboTax online edition, please see information below:
For income code 16, it's for Scholarship and Fellowship/Grant, here are the steps:
- Sign in to your account, select Pick up where you left off
- At the right upper corner, in the search box, type in "1098t" and Enter
- Select Jump to 1098t
- On the screen, Now Let's gather XYZ's Additional Education Expenses
- Follow prompts
- Next screen, Your Education Expenses Summary, select Edit
- Next screen Here's Your Education Summary, under Tuition, select Edit to enter tuition information
For income code 20, it's for Compensation during studying and training, to enter the info, please follow:
On the screen,
- To your left, select Federal, from the top, select Wages & Income, scroll down to Less Common Income ( very last section on the screen)
- Click on Show more drop-down menu, scroll down to Miscellaneous Income, 1099-A, 1099-C- Start
- Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099 select Start
If you are eligible for the tax treaty, you would need to file a Form 8833 and enter the treaty exemption as a negative amount. Enter under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ". You would need to print all tax forms and submit them by mail. https://www.irs.gov/pub/irs-pdf/f8833.pdf
If you have paid any income taxes or your employer has withheld any, you would need to report to IRS so as to reduce your tax liability.
- At the right upper corner, in the search box, type in estimates paid and Enter
- Select Jump to estimates paid
- On the screen, Estimates and Other Income Taxes Paid, select the correct category and enter information
