Retirement tax questions

Report the income in the social security section of your tax return (to satisfy the IRS), then make an adjustment on the line 21 of the 1040.

Follow these steps:

1. Select Federal
2. Select Income & Expenses
3. Click to Show All
4. Scroll down to the last one Less Common Income
5. Miscellaneous Income, 1099-A, 1099-C
6. select START
7. scroll to the bottom to Other Reportable Income.
8. click START
9. select YES
10. Enter description, US exempt due to Article 17(3)
11. then a negative number. 
12. click Continue
13. click Done

Turbo Tax does not directly support a treaty based position. You can do this by filing Form 8833- Treaty Based Return Position Disclosure.  You can use TurboTax to prepare your tax return to print and mail with Form 8833 attached.  You can access the  Form 8833 HERE.