Resident Alien tax return with treaty (Bangladesh), without any 1042-S from the school.

[THA757]

I am Resident Alien for 2022 tax return. We get Bangladesh tax treaty, but my university didn't provide any 1042S for that. Can I still apply for the treaty?

[RalphH1]

The absence of a 1042 shouldn’t prevent you from claiming treaty benefits. I’m curious why there isn’t one (is there a W-2 or 1099?). Withholding agents are required to report payments even if you’ve communicated to them that they’re completely exempt under a treaty.

@THA757 (kemon achen? I have friends from Dhaka...), treaty benefits are normally claimed by non-residents (and U.S. non-residents would file Form 1040NR, which TurboTax doesn’t support, but our business partner Sprintax does). However, it’s definitely possible for “residents for tax purposes” to claim them. You may have already done your homework on this, but feel free to give more details about your situation in case you haven’t and would like additional input from the Community...

[THA757]

Ami valo (I'm fine), thanks. 

I have W-2. From research, I found that I'm still eligible for tax treaty despite Resident Alien.  I can claim it as long as I'm in F-1. I talked with my university regarding 1042-S, they said that 1042-S for treaty should come from the state of Connecticut (since I'm a Univ of Connecticut employee). The strange thing I found is I received the 1042-S for treaty only for first 2years, didn't receive any in last 3 years as well. But some of my friends in other universities are receiving it each year regardless of NRA or RA (they are also in F-1). 

[DaveF1006 · Accepted solution]

According to the treaty, there is a two-year exemption period starting with the date you first entered the US. If you are beyond that point, you are not exempt from paying income tax and the treaty will not apply.

Please read Article 21 in the treaty.

@THA757 

[Eagle7]

Hi Dave/TurboTax,

I am resident alien for tax. I am on F1 visa and have been working at a US DOE laboratory for few years while continuing my PhD. I get my salary from the DOE lab and pay tax similar to a US national.

I wonder if I can claim Tax Treaty benefit while filing the 2023 tax. In all these years (more than 10 years), I never claimed tax treaty. A friend of mine told me I could get either tax treaty benefit or standard deduction. I am not sure what's the truth: am I eligible to claim tax treaty? If I am, can I do both standard deduction and the tax treaty together (almost 20000$ tax free income together). It is not straight forward for me to understand. Please give me your answer. Thank you.

[DaveF1006]

The exemption period of the F-1 visa is five years from the date of arrival in the US. Unfortunately , you cannot retroactively apply the exemption period to later years if you did not use it initially. If you lived here for ten years, then the exemption period has expired so you cannot apply the tax treaty.

[Eagle7]

Dave thank you so much. I just wanted to be sure before filing the tax.