I am an international student in resident-aliens status. I should have $5000 income exempt by the US/China treaty, but actually I had only $2000 exempted due to some paperwork mistake from the payroll office. How can I claim the rest $3000 on the tax return?
If you are on an F-1 or J-1 visa, you will be exempt from the Substantial Presence Test for the first 2 (if non-student) or 5 (if student) calendar years that you are in the US. This means that you are considered a non-resident aliens for US tax purposes.
Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.
If you are exempt, you are considered a nonresident alien are you are only required to file a US tax return for income from US sources. If you are required to file a tax return, you will file a Form 1040NR. TurboTax does not support Form 1040NR but you can go to the following website https://www.sprintax.com/ which is specifically designed to help international students file 1040NRs.
Additionally, Here is a link to the IRS website for Form 1040NR, U.S. Nonresident Alien Income Tax Return
If you meet the SPT and are considered a resident alien, then you will file as a US resident and will need to include all income worldwide on your US income tax return (Form 1040)
You will enter the 1042-S income as:
and you will enter the amount of the treaty exemption as a negative amount under other miscellaneous income. You may also need to attach Form 8833 to your tax return. (Attaching this form will require that you mail in your return. You will need to select - file by mail under the file tab.)
Since Form 8833 is not supported by TurboTax, here is the link to the IRS Claiming a Tax Treaty Benefit .
To enter your 1042-S for wages under other miscellaneous income:
To enter your 1042-S related to your scholarship:
To enter your 1042-S as other miscellaneous income:
To enter your treaty exemption under as other miscellaneous income:
If you are on an F-1 or J-1 visa, you will be exempt from the Substantial Presence Test for the first 2 (if non-student) or 5 (if student) calendar years that you are in the US. This means that you are considered a non-resident aliens for US tax purposes.
Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.
If you are exempt, you are considered a nonresident alien are you are only required to file a US tax return for income from US sources. If you are required to file a tax return, you will file a Form 1040NR. TurboTax does not support Form 1040NR but you can go to the following website https://www.sprintax.com/ which is specifically designed to help international students file 1040NRs.
Additionally, Here is a link to the IRS website for Form 1040NR, U.S. Nonresident Alien Income Tax Return
If you meet the SPT and are considered a resident alien, then you will file as a US resident and will need to include all income worldwide on your US income tax return (Form 1040)
You will enter the 1042-S income as:
and you will enter the amount of the treaty exemption as a negative amount under other miscellaneous income. You may also need to attach Form 8833 to your tax return. (Attaching this form will require that you mail in your return. You will need to select - file by mail under the file tab.)
Since Form 8833 is not supported by TurboTax, here is the link to the IRS Claiming a Tax Treaty Benefit .
To enter your 1042-S for wages under other miscellaneous income:
To enter your 1042-S related to your scholarship:
To enter your 1042-S as other miscellaneous income:
To enter your treaty exemption under as other miscellaneous income:
The problem is only $2000 was exempted from taxable income and I would like to exempt the rest $3000 on the tax return. There are only $2000 on my 1042S and the $3000 is on the W2 with the rest of my income.
If the company you work for will not change your 1042-S and W-2 to reflect the correct amounts, then include the $3000 as listed on your W-2 on your tax return but still make the treaty exemption amount $5,000 as a negative Line 21 amount (as per the answer) and claim the full $5,000 on Form 8833.