How can I claim the China-US tax treaty for resident aliens through TurBox?

Intuit Alumni

Jun 3, 2019 1:20:38 PM

As a J-visa holder, you are considered as a nonresident for two years from the year you first enter the US. (2015-2016) In your situation, during 2017, you are treated as a resident for tax purposes if meet the Substantial Presence Test SPT. As a resident, you are allowed to apply the tax treaty exemption on your Form 1040, if you meet the criteria.

If you qualify for claiming an exemption from a tax treaty, in the TurboTax program, you would first enter your income in the appropriate section. Then enter the treaty-exempt amount as a negative amount under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ". You will have to file a Form 8833 to claim an exception. You cannot e-file with TurboTax, but can print and submit all the tax forms along with the form 8833 by mail.

To review US-China treaty under Professors, Teachers, Researcher, please see below:

An individual who is a resident of the People's Republic of China and who is temporarily in the United States primarily to teach, lecture, or conduct research at a university or other accredited educational institution or scientific research institution is exempt from U.S. income tax on income for the teaching, lecturing, or research for a total of not more than 3 years. This exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest.

https://www.irs.gov/pub/irs-pdf/p901.pdf under page 16

Level 2

Mar 11, 2020 8:33:29 AM

What if it's an H1B visa holder working as a researcher. Will the US-China tax-treaty still apply?

Expert Alumni

Mar 11, 2020 10:25:51 AM

If you were previously a J-1 or F-1 holder, you may still be able to claim treaty benefits once you became an H-1 B visa holder., Researchers at research institutes working on projects with for-profit organizations may not claim treaty benefits.

Please see the following links.

Resident Alien Claiming a Treaty Exemption for a Scholarship or Fellowship

Tax Treaty Benefits for Worker, Trainees, Students, and Researchers

New Member

Apr 24, 2020 2:54:10 PM

Per Form 8833 instructions

Dual-resident taxpayer. An alien individual is a dual-resident taxpayer if that individual is considered to be a resident of both the United States and another country under each country’s tax laws.

If the income tax treaty between the United States and the other country contains a provision for resolution of conflicting claims of residence by the United States and its treaty partner, and the individual determines that under those provisions he or she is a resident of the foreign country for treaty purposes, the individual may claim treaty benefits as a resident of that foreign country, provided that he or she complies with the instructions below.

If you are an individual who is a dual-resident taxpayer and you choose to claim treaty benefits as a resident of the foreign country, you are treated as a nonresident alien in figuring your U.S. income tax liability for the part of the tax year you are considered a dual-resident taxpayer. If you are eligible to be treated as a resident of the foreign country pursuant to the applicable income tax treaty and you choose to claim benefits as a resident of such foreign country, attach Form 8833 to
Form 1040NR, U.S. Nonresident Alien Income Tax Return, or Form 1040NR-EZ, U.S. Income Tax Return
for Certain Nonresident Aliens With No Dependents. Please note it is NR return.

In order to be treated as a resident of the foreign country, you must timely file (including extensions) Form 1040NR or Form 1040NR-EZ with the Form 8833 attached. If you choose to be treated as a resident of a foreign country under an income tax treaty, you are still treated as a U.S. resident for purposes other than figuring your U.S. income tax liability (see Regulations section 301.7701(b)-7(a)(3)).

US resident election for tax purposes are WORLDWIDE income.

Taxable Income

A U.S. resident alien's income is generally subject to tax in the same manner as a U.S. citizen. If you are a U.S. resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U.S. tax return. You must report these amounts whether they are earned within or outside the United States.

New Member

Apr 27, 2020 11:54:22 AM

Publication 519, How to report income on your tax return. In
most cases, you will not need to report the income on your Form 1040 or 1040-SR because
the income will be exempt from U.S. tax under
the treaty. However, if the income has been reported as taxable income on a Form W-2, Form
Page 46 of 67 Fileid: … tions/P519/2019/A/XML/Cycle07/source 13:56 - 4-Mar-2020
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Page 46 Chapter 9 Tax Treaty Benefits
1042-S, Form 1099, or other information return,
you should report it on the appropriate line of
Form 1040 or 1040-SR (for example, line 1 in
the case of wages, salaries, scholarships, or
fellowships). Enter the amount for which treaty
benefits are claimed in parentheses on line 8,
Schedule 1 (Form 1040 or 1040-SR). Next to
the amount write “Exempt income,” the name of
the treaty country, and the treaty article that provides the exemption. Combine this amount with
the amounts reported on lines 1 through 7 of
Part I, Schedule 1 (Form 1040 or 1040-SR), and
report the total on line 9. Enter this amount on
line 7a of Form 1040 or 1040-SR.
Example. Mr. Yu, a citizen of the People's
Republic of China, entered the United States as
a nonresident alien student on January 1, 2015.
He remained a nonresident alien through 2019
and was able to exclude his scholarship from

U.S. tax in those years under Article 20 of the
U.S.–People's Republic of China income tax
treaty. On January 1, 2020, he became a resident alien under the substantial presence test
because his stay in the United States exceeded
5 years. Even though Mr. Yu is now a resident
alien, the provisions of Article 20 still apply because of the exception to the saving clause in
paragraph 2 of the Protocol to the U.S.–People's Republic of China treaty dated April 30,
1984. Mr. Yu should submit Form W-9 and the
required statement to the payer.

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How can I claim the China-US tax treaty for resident aliens through TurBox?