US-China Tax Treaty for student or researcher

[dachuandc]

Apology in advance since my situation seems very complicated. 

I entered the U.S. in Aug 2012 from China as an F1 student for a master's degree and continued for PhD in Aug 2015 at University A. I got a paid job working as a researcher at university B in Aug 2018 using CPT (F1) and switched to H1b in Aug 2019. I also had compensation as a teaching assistant from University A before June 2019. I never stopped my student status at University A although I switched to H1b.  Am I eligible for US-China tax-treaty as a student, a researcher, neither, or both?

My wife entered U.S. in Sept 2014 as an F2 dependent. She changed to F1 in Aug 2017 and graduated in May 2019 from University A. She received compensation from both University A and Company C before graduation. She continued working at company C using OPT after graduation. Is she eligible for the US-China tax treaty as a student? If she is, does it apply during the OPT period as well?

Thank you so much!

Thank you so much!

[KarenJ2 · Accepted solution]

If you entered the US in 2012 on an F-1 visa, you were exempt from the substantial presence test for 2012, 2013, 2014, 2015, 2016.  Starting January 1, 2017 you need to count your US days of presence.  So you are a resident.  Your wife is also a US resident in 2019.

I cannot tell you whether the US China treaty applies but can direct you to Publication 901,

China, People's Republic of

An individual who is a resident of the People's Republic of China and who is temporarily in the United States primarily to teach, lecture, or conduct research at a university or other accredited educational institution or scientific research institution is exempt from U.S. income tax on income for the teaching, lecturing, or research for a total of not more than 3 years. This exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest.

A student, business apprentice, or trainee who is a resident of the People's Republic of China on the date of arrival in the United States and who is present in the United States solely to obtain training, education, or special technical experience is exempt from U.S. income tax on the following amounts. Payments received from abroad for maintenance, education, study, research, or training. Grants or awards from a government, scientific, educational, or other tax­exempt organization. Income from personal services performed in the United States of up to $5,000 for each tax year. An individual is entitled to this exemption only for the time reasonably necessary to complete the education or training.

[dachuandc]

There is more information in the link below regarding my question. Thanks, KarenJ2!

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-how-can-i-claim-the-china-us-...