How to claim tax exemption on tax return based on tax treaty publication 901 as a researcher?

tyrsett — Mon, 24 Mar 2025 19:13:06 GMT

Good day, I'm a resident alien filing for tax return and have a question regarding tax exemption. I'm a researcher at a University under a J1 visa. Before my current position, I was a researcher in Germany for six years. According to publication 901, I am exempt from U.S. tax on income received for research for a maximum of 2 years from the date of arrival (June 10th 2022) in the United States. Does this mean I can claim for tax exemption from January 1st 2024 to May 31st 2024? How do I include this information on my turbotax return? Are there any additional forms I need to attach? Thank you for your time and guidance! Best regards,

Re: How to claim tax exemption on tax return based on tax treaty publication 901 as a researcher?

JamesG1 — Wed, 02 Apr 2025 00:03:54 GMT

IRS Publication 901, page 25, states:

Germany

A professor or teacher who is a resident of Germany and who is temporarily in the United States to engage in advanced study or research or teaching at an accredited educational institution or institution engaged in research for the public benefit is exempt from U.S. tax on income received for such study, research, or teaching for a maximum of 2 years from the date of arrival in the United States.

If you meet the qualifications outlined, it does appear that your income earned January 1, 2024 through May 31, 2024 would be exempt.

Was the relevant income in 2024 reported by W-2? If so, you may have to determine the amount to reverse.

In TurboTax Online, a reversal entry would be recorded as follows:

Post the negative entry as follows:

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click on the down arrow to the right of Less Common Income.
Click to the right of Miscellaneous Income, 1099-A, 1099-C.
Click to the right of Other reportable income.
At the screen Any Other Taxable Income, click Yes.
At the screen Other Taxable Income, enter a description such as “Tax Treaty reversal” and a negative amount.
Click Continue.

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

Retain all paperwork should a tax authority have a question at a later time.

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How to claim tax exemption on tax return based on tax treaty publication 901 as a researcher?

Re: How to claim tax exemption on tax return based on tax treaty publication 901 as a researcher?