Thanks a lot for your advise. Here is my case: I am an international student from China and became a resident alien in year 2019. So I need to report through turbotax. I do have W-2 and 1098-T which I transfer the information on them to Turbotax already. However, I also have a 1042-S is with income code 20 and 3a exemption code 04 and 4a exemption code 15. I did the following steps as you suggested:
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First you need to report your 1042-S income, as following:
Click on the "Federal Taxes" tab
Next click on "Wages and Income"
Next click on "jump to full list"
Scroll down the screen until to come to the section "Less Common Income"
Choose "show more", then Miscellaneous Income
Choose "Other Income not already reported on a Form W-2 or Form 1099"
Select - "Yes" for "Other Wages Received"
After 3 screens, select "Yes" for "Any other earned income".
On screen titled "Enter source of other earned income" - select "Other"
Input the "1042-S wages" and the amount on the next screen
Then you need to claim tax exemption of this income according to "China-US tax treaty, exemption under article 20(b)" since it's scholarship income, as following:
Click on the "Federal Taxes" tab
Next click on "Wages and Income"
Next click on "jump to full list"
Scroll down the screen until to come to the section "Less Common Income"
Choose "show more", then Miscellaneous Income
Choose "Other Reportable Income" and enter this information here under other taxable income
You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20(b)) and the exempt amount as a negative number as shown on your 1042-S.
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After doing this, my federal refund increase a lot. Since I already applied the tax exemption at the HR of employer, the wages I got is already not exempted for the 5000 part. Should I report in "Other Reportable Income" and report negative number or fill form 8833?
