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ajingnk
New Member

I am a F1 student, according to China-US Article 20 (c), there is 5000 deduction, how to apply this?

 
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4 Replies
LinaJ2018
Intuit Alumni

I am a F1 student, according to China-US Article 20 (c), there is 5000 deduction, how to apply this?

When was the first year you entered US on the visa ?
ajingnk
New Member

I am a F1 student, according to China-US Article 20 (c), there is 5000 deduction, how to apply this?

2010
LinaJ2018
Intuit Alumni

I am a F1 student, according to China-US Article 20 (c), there is 5000 deduction, how to apply this?

See answer below
LinaJ2018
Intuit Alumni

I am a F1 student, according to China-US Article 20 (c), there is 5000 deduction, how to apply this?

As a F-1 visa holder, you are considered as "exempt" meaning not counting days for five years starting from the date of your first arrival in the United States.  After the five years period, you will start counting days by using the Substantial Presence Test  to see if you qualify to be treated as a US resident for tax purposes.

In your situation, you are considered as a nonresident from 2010-2014 filing a Form 1040-NR.  Starting from 01/01/2015, you will start counting your days.  If you meet the Substantial Presence Test in 2016, you will be considered a US resident for tax purposes and file a Form 1040 for your tax year of 2016.

First, you have to report your full income. Then you can enter the treaty exempt amount as negative income under "Less Common Income". You will have to file form 8833 to claim an exception.  You cannot e-file but can use Turbotax to prepare your return, print them out and submit along with the form 8833. 

Here are the instructions: 

1.  Enter your full income accordingly. Then enter the treaty exempt amount as negative amount ( -5000) under                            Federal Taxes / Less Common Income / Miscellaneous Income 1099A, 1099C / Other Reportable Income

2.  You will have to file form 8833 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf

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