How to claim the US-China tax treaty?

[lizhaochao]

From Step 3, I can find "Less common items (boxes 7-14)", as shown in the figure. I can not take the following steps (after step 4). By the way, I tried free version and deluxe version, respectively. Would you tell me how to do next? Thanks!

[DMarkM1]

You do not appear to be in the correct spot per the steps KarenJ2 described above.  Be sure to follow these exactly to get to the right area. Step three is a scroll all the way to bottom of the page and click "Show More" to get a drop down of the items available that will allow you to continue to the next steps.  

1. Click on Federal on the left hand side of your screen
2. Click on Wages & Income
3. Scroll down to Less Common Income
4. Scroll down to Miscellaneous Income , 1099-A, etc
5. Click on Start or Update
6. Scroll all the way down to Other Reportable Income
7. Click on Start 
8. Add a Miscellaneous income item
9. Input description of your wages and wage amount
10. Input your Wages
11. Click Continue and Click Add Another Miscellaneous Income Item
12. Enter your treaty exemption as a negative number.  You cannot exempt more than your total wages.
13. The amounts will offset to zero.   You will be able to see both entries and descriptions on Schedule 1 of your tax return.

[lizhaochao]

I got it. Thank you very much!

[alina9457]

This method leads me to directly e-file. Don't I need to paper file it with form 8833?

[frankshufang]

For the 2019 tax filing, I cannot enter the other reportable income under the miscellaneous income. How should I get this done?

[lizhaochao]

I have one more question. My wife and I file jointly. My wife is not qualified to apply for the SSN. I am helping her to apply for the ITIN. The IRS asks for the 1040 form, and I can not output 1040 form without her SSN  or ITIN. Can we file without SSN or ITIN? Or can we output 1040 form, so we can use it to apply for the ITIN? Thank you very much!

[KarenJ2]

Please see below for instructions on completing a married filing jointly tax return in TurboTax if applying for an ITIN  

You will need to file the return by mail using the instructions below and enter her  as your spouse.  

You will need to issue a "dummy" SSN in TurboTax for your spouse just so you can complete your return.  Enter 305-44-0001.  Then when your tax return is finished, you will need to print the return (you cannot e-file) and "white-out" the "dummy" SSN and write in Applied For. 

Prepare a Form W7,  then include it with the required original (or documentation certified by the issuing agency)..File the return to this address:  

Internal Revenue Service . ITIN Operation . PO Box 149342 . Austin TX 78714-9342   

If you use a private delivery service       Internal Revenue Service ITIN Operation Mail Stop 6090-AUSC 3651 S. Interregional, Hwy 35 Austin, TX 78741-0000  

How to print and mail my return

[LufengLIN]

Where should I file the Form 8833, is there an address and a number? Thanks

[MaryK4]

To file Form 8833 with your return, go to Where to File Paper Tax Returns With or Without a Payment

@LufengLIN

[Scott777]

Could you please answer these questions?

<https://ttlc.intuit.com/community/taxes/discussion/urgent-resident-alien-with-tax-treaty/00/1665576>

[yyfkelly]

Hello,

Can I mail file the federal tax return only and e-file the state tax return, or do I have to file them both by mail? Please let me know.

Thank you,

Kelly

[ReneeM7122]

Most international students are not eligible to claim education tax credits. International students who may be eligible are:

• Permanent residents married to a U.S. citizen
• Permanent residents

The U.S. - China TaxTreaty  states that  that students can be exempt from tax.  This is not the same as a tax credit. 

ARTICLE 20 (Students and Trainees)

A student, business apprentice or trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first- mentioned Contracting State solely for the purpose of his education, training or obtaining special technical experience shall be exempt from tax in that Contracting State with respect to: (a) payments received from abroad for the purpose of his maintenance, education, study, research or training; (b) grants or awards from a government, scientific, educational or other tax-exempt organization; and (c) income from personal services performed in that Contracting State in an amount not in excess of 5,000 United States dollars or its equivalent in Chinese yuan for any taxable year. The benefits provided under this Article shall extend only for such period of time as is reasonably necessary to complete the education or training.

TIP:

You may want to complete Form W-8BEN, claim a tax treaty, and give it to your school and / or and employer(s).   This will help avoid the automatic higher withholding rate when payments are made to you in excess of $5,000, which was mentioned in the treaty.  Download the form from the link provided above and complete it on your own outside of TurboTax.

How to file a tax return with Form 8833

You'll need to file your tax return by mail.  Unfortunately, you can't eFile your return with Form 8833, and you shouldn't eFile your return separately and send in Form 8833. Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), cannot be electronically filed.

[jackexu10]

CHINA-US TAX TREATY for F visa is under exemption - so no need to submit 8833 from 

Exemption according to  26 CFR § 301.6114-1(c)(1)(iv) and (c)(2):

(1)(iv) That a treaty reduces or modifies the taxation of income derived from …, or income derived by artistes, athletes, students, trainees or teachers;

(2) Reporting is waived for an individual if payments or income items otherwise reportable under this section (…), received by the individual during the course of the taxable year do not exceed $10,000 in the aggregate or, …

[Constantin]

I think that the described process leads to a false result:

1. Tax treaties only exempt fellowships for students from federal tax, not from state tax. 

2. When applying the exemption as suggested in this thread then the amount that I entered gets subtracted from both federal and state taxes. 

Please advise on how to deal with this situation.

[JeffreyR77]

You are correct that US states are not bound to honor Federal Tax treaties.  However, most do.  Here are those that do not:

 Alabama, Arkansas, California, Connecticut, Hawaii, Kansas, Kentucky,  Maryland, Mississippi, Montana, New Jersey, North Dakota and Pennsylvania.

It may be excluded for California Tax only if the treaty specifically excludes the income for state purposes. If the treaty does not, California requires the reporting of adjusted gross income from all sources.

In most state income tax cases, the state begins calculation of state taxable income with the Federal adjusted gross income which would reflect the treaty exempt income subtraction.