TRIANGLE ACCOUNTING

三角区会计事务所

地 址 ：TRIANGLE ACCOUNTING

1601 Walnut St.

Carry, NC 27511

电 话 ：(O) 919-380-1040 

传 真 ：(Fax) 919-481-6943

F-1 and H-1 visa holder tax treaty

F-1 students under OPT and have dual status of H1, they can still claim $5000 treaty benefit on 1040. Enter the exempt income on line 21(other income list type and amount). And then attach form 8833 treaty base return position disclosure.

On form 8833 line1a, enter US & P. R. China. On line 1b, enter 20(c) of the 4/30/1984 protocol. On line 2 IRC code over-ruled by treaty enter "IRC61; 871(b)."

For those conducting teaching and research and have been in state for less than 3 years, one of the treaty clause is suitable for this situation to tax-exempt all income (forgot either 20(a) or 20(b)). You can search pub 519 for treaty details.