Hello, I wrongly reported the years of stay in US when I came to my current university -- It seems that I didn't correctly report the days I studied in a previous university as I hadn't got any payment then.
Now, I'm told that I shouldn't have signed tax treaty last year. However, coming from China, I find that I'm still eligible for exactly the same treaty benefits even I become a resident alien.
With 1042S form in hand, I'm not sure what to do... Can I simply attach it with a 1040 form? In W2, the $5,000 is already deducted from taxable income... Could anyone help me? Thanks!
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If you are an F-1 visa holder, you are considered a non-resident alien for the first 2 (non-students) or 5 (students) calendar years because you will be exempt for the Substantial Presence Test (SPT) .
Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.
However, since 2015 was your 6th year in the USA, you will be considered a US resident for income tax purposes.
You will need to enter both the 1042-S and the amount of treaty exemption (if additional treaty exemption is available)on your Form 1040 if you are a US resident alien. If you received a 1042-S then the IRS has also received a copy of this 1042-S.
You will enter the 1042-S income under other earned income (or scholarship income if it is for a scholarship grant)and you will enter the amount of the treaty exemption (if any available) 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 website regarding claiming a tax treaty benefit:
https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits
To enter your 1042-S for wages under other miscellaneous income:
If this is scholarship income.
To enter your 1042-S related to your scholarship into TurboTax:
You will now need to enter a negative amount for the treaty exemption under other miscellaneous income
To enter your treaty exemption under as other miscellaneous income:
If you are an F-1 visa holder, you are considered a non-resident alien for the first 2 (non-students) or 5 (students) calendar years because you will be exempt for the Substantial Presence Test (SPT) .
Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.
However, since 2015 was your 6th year in the USA, you will be considered a US resident for income tax purposes.
You will need to enter both the 1042-S and the amount of treaty exemption (if additional treaty exemption is available)on your Form 1040 if you are a US resident alien. If you received a 1042-S then the IRS has also received a copy of this 1042-S.
You will enter the 1042-S income under other earned income (or scholarship income if it is for a scholarship grant)and you will enter the amount of the treaty exemption (if any available) 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 website regarding claiming a tax treaty benefit:
https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits
To enter your 1042-S for wages under other miscellaneous income:
If this is scholarship income.
To enter your 1042-S related to your scholarship into TurboTax:
You will now need to enter a negative amount for the treaty exemption under other miscellaneous income
To enter your treaty exemption under as other miscellaneous income:
I am a F-1 visa holder for over 5 years, I only have a 1042-S from my university for last year. All the money I made on 1042-S has not been taxed, has a tax rate of 0 because of the US.China treaty. And I don't know if I need to file the 8833 or other files. Can I just file online?
You can file in TurboTax and include your income from the 1042-S. You may also need to file form 8833.
Click on Federal on the left hand side of your screen
Click on Wages & Income
Scroll down to Less Common Income
Scroll down to Miscellaneous Income , 1099-A, etc
Click on Start or Update
Scroll all the way down to Other Reportable Income
Click on Start
Add a Miscellaneous income item
Input description of your wages and wage amount
Input your Wages
Click Continue and Click Add Another Miscellaneous Income Item
Enter your treaty exemption as a negative number. You cannot exempt more than your total wages.
The amounts will offset to zero. You will be able to see both entries and descriptions on Schedule 1 of your tax return.
do i need to mail the form 8833 for both federal and state tax return?
No, you only need to attach the Form 8833 to your Federal return and mail to the IRS.
It does not apply to your state tax return as it is a federal form.
Thanks for your suggestions. I get a 1042-S for tax-exemption of upto $8000 due to the existing tax-treaty with my country (income code 20). This is the first time I am filing as a tax resident. So I tried to follow your guidelines, I added a miscellaneous income of $8,000 as '1042-S wages' and also to balance that out I added another miscellaneous income of -$8,000 as 'tax treaty exemption'. However, doing these makes the total miscellaneous income as $0 and it does not show up in the 1040 form (Line 7a shows blank, which I guess should be usual, because technically the net income is $0 in this regard). Am I doing anything wrong? Please advise.
@joyshubhra No that is exactly correct. Great job!
About Filing Form 8833. If I am a student (also resident alien) who claims the tax treaty, do I need to submit form 8833? From the second item of "exceptions" on the website (https://www.irs.gov/individuals/international-taxpayers/claiming-tax-treaty-benefits), it seems that the income of students belongs to one of the exceptions. Does it mean that I do not need to submit Form 8833? Thank you.
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