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Hi, I am a foreign student from China.But my wife is a resident alien. This year, I want to file the joint tax, as the resident alien. But I have a question: I received my 1042-S form with income code 19 ($5000), and this non-taxable $5,000 is NOT shown

Hi, I am a foreign student from China.But my wife is a resident alien. This year, I want to file the joint tax, as the resident alien.

But I have a question: I received my 1042-S form with income code 19 ($5000), and this non-taxable $5,000 is NOT shown in my W-2, I do not know how to put this income into Turbotax.

I tried previous method that you suggested, which is to put it into Miscellaneous Income. However, it seems you system is already updated. I put it as income, then my total taxable income will be increase to 5000, if I put it as negative 5000, then my total taxable income will be decreased.

Is there any method to put the 5000 as non-taxable income?

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    You have to put the income in 2 places. One as positive income and once as negative income and claim the tax treaty.

    The income with code 19 should be added on line 7 of form 1040.
    To get it there do the following:

    http://turbotax.intuit.com/support/iq/Wages---Income/How-Does-TurboTax-Calculate-Line-7-Form-1040-10...
    Other Income Earned not reported on Form W-2

    Other income not reported on Form W-2 must be reported on line 7 on Form 1040. TurboTax automatically transfers this income to the correct line.

    Follow these steps to enter or view Other Income Earned not Reported on Form W-2:

    1. Go to the Federal Taxes tab, click on Wages and Income.
    2. Click Explore on My Own.
    3. On the “Your Income Summary Screen” scroll down to Miscellaneous Income, click Update to view or Start to enter.
    4. On the “Let’s Work on Any Miscellaneous Income” screen go to Wages not Already Reported on a W-2, click Update to view or Start to enter.
    5. Go to the third screen “Other Earned Income” to view or enter.


    Enter the $5000 exempt amount as negative income under miscellaneous income and write "China-US tax treaty, exemption under article 20" as explanation. You will also file 8833 to claim the treaty exemption.

    Not all states recognize tax treaty exemption.
    You need to prepare your federal return and state separately.
    After you finish the federal return, remove the negative amount and prepare your state return. If the state allows for tax treaty exemptions, you will be asked during the state interview. If not, the $5000 willl be taxable for the state return.
    • Thank you for the reply. But I still not clear where to input the postive 5000, and where to input the negative 5000? Are they both should be input in miscellaneous income? Or put the negative 5000 in miscellaneous income, and postive 5000 somewhere else?
    • If that wasnt clear from my answer, you might want to hire a professional tax preparer
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