F1 Resident Alien 1042s and w2

[ymao]

Hi,

I am a resident alien with an F-1 Visa. In 2021, I had two jobs. The first one provided a 1042-S form and the second one provided a W2 form. My 1042-S form shows an income code 20, gross income $4000+ (which is less than the US-China treaty $5000), and a tax rate of 0.0.

My question is do I need to report this $4000+ income to IRS? If yes, how?

Thanks! 

IRS website says:

In most cases, you will also not need to report the income on your Form 1040 or 1040-SR because the income will be exempt from U.S. tax under the treaty. However, if the income has been reported as taxable income on a Form W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 1040 or 1040-SR (for example, line 1 in the case of wages or salaries). Enter the amount for which treaty benefits are claimed in parentheses on Schedule 1 (Form 1040), line 8. Next to the amount, enter “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. Combine this amount with the amounts reported on lines 1 through 7 of Schedule 1 (Form 1040), Part I, and report the total on line 9. Enter this amount on line 8 of Form 1040 or 1040-SR.

[DaveF1006]

The 1042-S should be reported but exempted since it is under the $5000 income exemption as a result of the US-China tax treaty.  Here is how to report to comply with IRS requirements.

1. Open your return in TurboTax 
2. Click on Wages & Income 
3. Scroll down to All Income 
4. Scroll down to Less Common Income 
5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 
6. Click start 
7. Scroll down to Other reportable income 
8. Answer yes 
9. Enter description and amount 
10. For the first description type in 1042 S income from China and the amount.
11. Now select the button that says add miscellaneous income item
12. Here type in exempt income, then  the name of the treaty country, and the treaty article that provides the exemption. Then enter the amount listed in step 10 as a negative number.
13. As a result, line 8Z in Schedule 1 will show the income but in the second line underneath that, it will the amount excluded plus "Exempt income,” the name of the treaty country, and the treaty article that provides the exemption". You will need to supply the information such as the treaty article and the name of the country..

[ymao]

Thanks for your reply. Can I still e-file?

[LoganathanB]

Yes, you can efile the tax return in TurboTax.