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The money will be fully taxable to you as wages, no matter how it is received or paid. There are no tax benefits or deductions that apply in this particular situation.
If you were enrolled in coursework during the fall 2022, your employer could pay up to $5250 of tuition tax-free as an employee benefit, provided that the employer follows the rules regarding establishing a tuition benefit program. Any amounts over $5250 would be included in your W-2 taxable income even if they were paid directly to the school. In this case, since you will have graduated in May, there is no way to treat your sign on bonus as a non-taxable tuition benefit.
Further, $40,000 of gross wages during an internship is more than enough to require you to file a 2020 tax return. as a student on a capital F visa, you are considered a non-resident alien, and you would file a form 1040-NR. This form is not supported by TurboTax, you will need to find another tax preparer to help you prepare a nonresident tax return.
you might be exempt from income tax if you are covered by a tax treaty and you paid income tax in your home country, but this is complicated an individual to each country, and I can’t provide further advice on this topic. If your work was in connection with your educational program, you might be exempt from Social Security and Medicare withholding in the US, but you are not exempt from paying income taxes.
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