F-1 Student from Germany in 6th Year: Is my scholarship reported on 1098-t still tax exempt under tax treaty?

Forum|Forum|3 years ago
April 13, 2023
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I am a German student on an F-1 Visa and currently in my sixth year. As of right now I have scholarship reported on the 1098-t that counts as taxable income. In previous years, I never had to pay taxes on any scholarship received due to a tax treaty between Germany and the US. Does this tax treaty still apply to me, and if yes, how can I file it on TurboTax?

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DaveF1006

According to Article 20 Section 4 of the tax treaty, A student or business apprentice within the meaning of paragraph 2, or a recipient of a grant, allowance, or award within the meaning of paragraph 3, who is present in a Contracting State for a period not exceeding four years shall not be taxed in that State on any income from dependent personal services that is not in excess of $ 5,000 (five thousand United States dollars) or its equivalent in Deutsche mark per taxable year, provided that such services are performed for the purpose of supplementing funds available otherwise for maintenance, education, or training.

Since you have been present for more than 4 years, the exemption no longer applies according to the terms of the treaty.

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