I am a Chinese and I know I qualify for the US-China treaty for J1 visa holder. But I do not see any where asking about nationality or determine the treaty. Is it normal?

[jiayuanzhao]

I am a postdoc researcher at a US university. I was determined by Sprintax that I am a resident alien. I did my master in the US and had filed tax return back then. I came back to US in September 2015 as a postdoc researcher with a J1 visa. During 2016, I was paid by Swiss fellowship for salary. I received 200 dollars for helping in teaching in the US university. But I did not put in my salary from Switzerland. Is this normal? Do you not need this information for tax return? Thanks

[bine22]

were you in the US before 2015 on a J or F visa?

[jiayuanzhao]

Yes, I had a F1 visa in 2009-2012. That is another thing turbotax did not ask. My visas.

[bine22 · Accepted solution]

Turbotax does not ask about visas as it is only intended for US citizens, permanent residents and resident aliens. So it assumes, you already know, wife you fall into that category or not. Turbotax also does not directly support tax treaties. 

Since you are a resident alien, you have to report worldwide income. The fellowship from Switzerland enter under credits and deductions / educational expenses / click through the non-relevant questions until you get to the screen asking for taxable scholarships.

To claim the treaty enter any exempt amount as negative amount under less common income - miscellaneous income. In the explanation box enter China - US Tax Treaty Article 19. You should also file form 8833 with your return to claim an exception to the savings clause, as usually tax treaties would only be claimable by nonresident aliens. This form is not supported, you can download it separately and file it together with your return by regular mail.

[jiayuanzhao]

Thanks, that is very helpful. This is my first year filing as resident alien. I have two relevant question: 1, I understand they want me to report any worldwide income during 2016. But I don't feel comfortable disclosing all of my other foreign bank accounts. I had them before I came to US. The money there was earned in another country while I worked there. It is apreant to me US can not tax me for them and I don't see why I have to disclose all my life saving. 2, I am a but confused that I need to list my worldwide income under "taxable scholarship" because I don't think that is taxable. The money is from another country.

[bine22]

As a resident alien you are taxed just like any other US citizen. You are required to report WORLDWIDE income, that includes the scholarship and would also include interest income or any other income you have abroad. You also have to disclose foreign accounts on the FBAR form Fincen 114 (filed separately), if you had at one point during the year $10,000 or more in your foreign accounts (the sum of all accounts). That is the law in the US. You might not like it, but if you want to live/study in the US for longer than you are considered a nonresident alien, you have to accept the law as is. Since you can claim the treaty exemption for up to three years, the scholarship wont be taxable in the end, but you HAVE to report it to be able to claim the treaty exemption.