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
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:
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: