J-1 scholar with 1042S from one univ and W-2 from another

[nafishasan1980]

Hello,

Between Jan 2022- and July 2022 I was a US resident for tax purposes and received a 1042-S from one univ where I was J-1 scholar. Since my country of origin and the US have a tax treaty, I opted to not have any tax withheld on this income.  I believe the treaty allows 2 years of tax free income on the J visa. Between July 2022 and Dec 2022 I was at another univ on the same J-1 and received a W-2 from them in which some tax was withheld. I left the US on Feb 2, 2023, which is before the end of two years (thus the tax free benefit should apply).

When I upload my 1042 S on turbo tax under Less Common Income and my W-2 under Income, I am shown 'Federal Due $2884' on the top. How do I tell Turbo that I had the treaty exemption and that I do not owe any tax. In fact, I believe that the tax withheld by my second institution should be refunded.

Looking for your suggestions! Many thanks

[AmyC · Accepted solution]

You must subtract out the income.  Once you do, you will have a refund of the amount taken. 

You can do this once for the w2 and once for the scholarship or you can add them together and enter the total once. I would opt for entering each separately as it allows the dollar amounts and description to flow better. Follow these steps:

1. Select Federal
2. Select Income & Expenses
3. Locate Less Common Income
4. Miscellaneous Income, 1099-A, 1099-C
5. select START
6. scroll to the bottom to Other Reportable Income.
7. Select START
8. select YES
9. Enter description,  treaty based exemption
10. then a negative of your income amount, use a minus sign in front
11. Select Continue
12. Description, scholarship offset, w2, or similar
13. click Done

[nafishasan1980]

Thankyou so much! This worked, perfectly!