J1 research scholar Tax Treaty Article 20 when becoming US resident for tax purpose

[JonWantsToUnderstand]

Hi,

I am a French citizen and I came to the US in November 2019 and I start working the same month with a J1 Research scholar Visa.

With my visa, I have a Tax Treaty Article 20 for Teachers and Researchers (https://www.irs.gov/pub/irs-trty/france.pdf). The treaty is applicable for 2 years from the date of the arrival in the US. I don't see any mention of "calendar year" then it should be applicable from November 2019 to November 2021. The Treaty also has a saving clause when a nonresident alien becomes a resident alien for tax purposes.

I was a nonresident alien for 2019 and 2020 because of my exemption from counting days for the substantial presence tests. I have used Sprintax to file my tax and claim my Tax Treaty Article 20. I claimed 2 months of the Treaty in 2019 (November and December) and 12 months in 2020. I have used 14 months in total of the Treaty.

Starting in 2021, I am a resident alien for tax purposes. I am trying to understand how to apply the Tax Treaty Article 20 to claim the 10 remaining months. I have found a similar case here: https://ttlc.intuit.com/community/state-taxes/discussion/after-two-years-of-tax-exemption-does-a-j1-...

From this link: "Note that the exemption for your fellowship income ends on the day before your arrival date two years before.  For example, if you arrived 18 August 2016, fellowship income received through 17 August 2018 is exempt from federal income tax, because this is a benefit that can be taken by a US tax resident who is not a US citizen or green card holder (ref. US-France tax treaty, article 29, paragraph 3(b)). "

1) Could you confirm that I would be able to claim the Tax Treaty Article 20 from France for the 10 first months of 2021?

2) If yes, should I file an 8833 form? (Example of 8833 form found here: http://reuter.mit.edu/dfgw/images/e/e2/F8833-ex.pdf) or/and other forms like W9 (https://www.irs.gov/individuals/international-taxpayers/resident-alien-claiming-a-treaty-exemption-f...)?

3) Is it possible to use Turbotax to do that?

I spent hours figuring it out but I am still not sure about these answers.

I would really appreciate guidance from tax experts to file my tax return.

Thank you very much for your help!

[DaveF1006]

Yes, under the terms of the tax treaty, you may exempt your income up to your two-year anniversary date of your arrival. You will need to calculate the amount of income from your W2 that is exempt. This is how to report.

• With TurboTax open select  Wages & Income.>W2 income. Report the full amount of the W2 here. After doing this:
• Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C.
• On the next page select Other reportable income.
• On the page Other Taxable Income enter Tax Treaty Exclusion in the description and enter  your exclusion as a negative amount. 
• This will put your Tax Treaty Exclusion on Schedule 1 Line 21 of your 1040.

To claim the Treaty Based Position, you will to fill out form 8833 and include with your tax return. Unfortunately, Turbo Tax does not support the filing of this form thus you will need to download on the above link to complete, print, and mail in with your tax return. You won't be able to efile because of the 8833 form in your return, which you must complete.

@JonWantsToUnderstand