J1 Visa Holder / Resident for tax purposes / No W2

[jose-v-diaz-hino]

Hi there, I'm a J1 Visa holder (visiting scholar) and my wife has a F1 visa (graduate student), but we're filling taxes separately. I know for sure that I'm a resident for tax purposes. I receive a stipend from the university where I conduct my research. However, I'm not in the payroll system (because stipends are not wages or salaries). They only told me that I need to fill the W-2 on my own. Does anyone know if TurboTax is able to help me to create my W2 substitute or this situation is beyond its capabilities?

[DS30]

[edited April 13, 2016]

If you are on a J-1 visa, you will be exempt from the Substantial Presence Test for the first 2 (if non-student) or 5 (if student) calendar years that you are in the US. This means that you are considered a non-resident aliens for US tax purposes.

You will need to file a Form 1040NR to report your US source income. TurboTax does not support Form 1040NR. You may want to try https://www.sprintax.com/ which is specifically designed to help international student nonresident aliens with their US tax returns.

If you are in the US beyond this exempt period, you will file as a US resident.

Click this link for more information from the IRS on US Tax Guide for Aliens

You can enter your stipend as a scholarship on your US income tax return. You would also be able to claim a treaty exemption to this income if one applies.

You would include your stipend income under the education section and if applicable, you will enter the amount of the treaty exemption as a negative amount under other miscellaneous income. You may also need to attach Form 8833 to your tax return. (Attaching this form will require that you mail in your return. You will need to select - file by mail under the file tab.)

Since Form 8833 is not supported by TurboTax, here is the link to the IRS website regarding claiming a tax treaty benefit:

https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits

To enter your stipend as a scholarship into TurboTax:

1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Deductions and Credit”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Education”
5. Choose "show more", then Expenses and Scholarships (Form 1098-T)
6. You will need to choose the student this Scholarship relates to and select "edit"
7. Under the Education Summary page, select "Scholarships and Grants" - edit
8. Say "yes" - to question "Did (name) receive a scholarship or grant in 2015?"
9. Enter amount as "Other Scholarships/Grants/Fellowships (screenshot #1)

If a treaty exemption applies, you will now need to enter a negative amount for the treaty exemption under other miscellaneous income

To enter your treaty exemption under as other miscellaneous income:

1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose "show more", then Miscellaneous Income
6. Choose "Other Reportable Income" and enter this information here under other taxable income (screenshot #2)
7. You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20) and the exempt amount as a negative number.

[DS30]

Thank you. I have edited my answer to include your incite on this matter.

[bine22]

a fellowship is entered as a scholarship. The sentence "You can enter your stipend as foreign wages on your US income tax return." does not make sense at all. Also, the OP did not say anything about a tax treaty. Not everyone can claim a treaty exemption. Also, even if a treaty exist, there are special requirements to be able to claim it as a resident alien

[bine22]

You would enter your stipend as a scholarship in the education section (credits and deductions). You need to click through all the irrelevant questions until you get to enter the scholarship.