1042-S

I am a resident alien for tax purposes from India. I have a 1042-S with an income code 20; chapter 3; and the boxes 3a and 4a are 04 and 15 respectively. I thought this means that the income is "exempt under tax treaty", but I don't see why it would be under the India-US tax treaty. Should I report it as additional income in TurboTax and pay tax on it?

Secondly, this income is already included in the W2 form for state wages. If I add it as additional income for the federal return on TurboTax, it double-counts it for the state return. How do I fix this?

posted