How to claim the US-China tax treaty?

[manjuli4]

I am an international student pursuing a PhD degree. My tax status changed from non-resident alien to resident alien in 2016. The US-China tax treaty Article 20 states students have some credits for tax. How could I claim it? I didn't receive the 1042-S form. I know that I have to include the form 8833 on my tax return generated by TurboTax. But how should I do that? 

[purelandamita]

I have faced the same situation, how did it go for you? ??????

[LinaJ2018 · Accepted solution]

You can still apply the tax treaty to your tax return with our software, you will just enter it differently than the normal way.  In the TurboTax program, report your full income usual. Then you can enter the treaty-exempt amount as negative income under "Less common income".  You will have to file a Form 8833 to claim an exception. As TurboTax does not support Form 8833, you cannot e-file.  Instead, you may use the program to prepare your return, but need to print out your tax forms and mail the returns along with the form 8833.   Besides the Form 8833 and 1040, you will also need to submit a copy of your tax documents ( for example, W-2 /Form 1099s) which pertain to any credits and deductions you are applying if there are any. 

1.  For example, if you receive a Form W-2, to report wages:

     - Sign into your account and select Take me to my return

     - At the right upper corner, in the search box, type in W-2 and Enter 

     - Select Jump to w-2, follow prompts to enter your information

2.  Enter the treaty-exempt amount as negative amount (-5000) under  Federal Taxes / Less Common Income                           / Miscellaneous Income 1099A, 1099C / Other Reportable Income

3.  File a Form 8833 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf

[manjuli4]

Should I have to upgrade free edition to deluxe edition?

[LinaJ2018]

You don't have to.  You should be able to use your current edition.  However, if the program prompts you to upgrade to a different version, please do so.

[manjuli4]

It looks I have to use the deluxe edition. One more question, after I entered the 1098-T,  the deluxe edition says I can redeem some credits and the amount of tax increased from 1500 to 3100. However, my income tax withheld of 2017 is about $2100. Is there something wrong?

[monroe421stevens]

This software is not working well for us....I even cannot download the file by my self

[mingziku2008]

I followed until Federal Taxes / Less Common Income , where is  / Miscellaneous Income 1099A, 1099C / Other Reportable Income?

[bingxin.dreamer]

I cant find the Miscellaneous Income 1099A, 1099C / Other Reportable Income either, and entering negative number is prohibited. Anyone can answer?

[vrattini]

I have the same problem of @manjuli4 How did you solve it?

[larryfocus]

Thank you sir! This is still applicable as of January 2020.

[ChongPeng]

Does this still apply for 2019 tax return?

[DaveF1006]

According to the Bloomberg Management Journal, US and China still maintains a tax treaty.  Please select this link for verification.

[jguo215]

The program does not allow income to be less than 0 in the box 14 input. I was not able to proceed. 

Any idea on how to get that fixed? Thanks 

[KarenJ2]

Please see the following steps to input your income and your treaty exemption.

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.