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Guidance on Filing Taxes with W-2 and 1042-S Forms for Resident Alien Status

Forum|Forum|2 years ago
February 20, 2024
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Hello,

I am an international student from China on an F1 visa. Since 2023 is my sixth year in the U.S., I believe now I'm qualified to file taxes as a resident alien for the year 2023. As a Ph.D. student and a teaching assistant at a university, I've received a W-2 form indicating my wages. Additionally, I have a 1042-S form from the payroll center, related to wages claimed under a treaty benefit, with an income code of 20 (box 1), a gross income of $5,000 (box 2), chapter indicator 3 (box 3), Exemption code 04 (box 3a), Exemption code 16 (box 4a), and 0 for box 3b, 4b, 7a, 8, 9, 10, 11.

I'm looking for guidance on how to accurately enter the information from 1042-S forms through TurboTax, as I was unable to locate the section for inputting the 1042-S information.

Thank you!

TurboTax Deluxe Online

Best answer by AmyC

Yes, you have to report the income as mentioned above but you also need to subtract the income using the same interaction. Your 1042-S would be wage income so report the $5,000 under other reportable income and then report it again as a negative income and a description identifying it as China treaty related.

Federal:

Here is an example of an Italian pension income and withdrawal as an example of input. Yours will be a little different since yours is wage income.

Unless you have something else, you should be exempt from filing the 8833 with the federal.

The payee must file a U.S. tax return and Form 8833 if claiming the following treaty benefits:

A reduction or modification in the taxation of gain or loss from the disposition of a U.S. real property interest based on a treaty.
A change to the source of an item of income or a deduction based on a treaty.
A credit for a specific foreign tax for which foreign tax credit would not be allowed by the Internal Revenue Code.

The payee must also file Form 8833 if the payee receives payments or income items totaling more than $100,000 and determines the country of residence under a treaty and not under the rules for determining alien tax status.

State:

The treaty may not apply to your state. You will need to see if your state taxes the income or if they require you to file form 8833 for it to be exempt or if nothing additional is required. See How do I contact my state Department of Revenue?

D

DavidD66

TurboTax does not support Form 1042-S, so there aren't any specific entry screens in TurboTax for form 1042-S. You should report the income and withholding in the appropriate category of income that is appropriate or as "Other Reportable Income" under Miscellaneous Income if you cannot find a matching category.

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M

Mr_CleverAuthor

Thank you for your prompt response and the guidance provided.

However, I'd like to clarify my situation further regarding the $5,000 income. Under the tax treaty between the U.S. government and the government of China, specifically under article 20(c) and the saving clause of article P2 (shown on the form W-9 that I signed), the first $5,000 earned at the university by a student from China is considered non-taxable. This is also reflected in my Form 1042-S, where the tax rate is indicated as "00.00", implying no tax was withheld since it's treaty-exempt.

After following your advice and entering the $5,000 as "Other Reportable Income" under Miscellaneous Income in TurboTax, it appears that this amount is being treated as taxable income, which contradicts the treaty's stipulation.

Could you please advise if there's an alternative way I should be reporting this income to accurately reflect its non-taxable status under the treaty? Or is there a specific section within TurboTax where I can claim this exemption to ensure it is not taxed? Or should I just ignore this and only report income shown on the W-2?

Thank you once again for your assistance.

AmyCAnswer

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