Hi Tax Expert,

I am a F-1 student from China, and this is my 8th year under F-1 (a second degree). I had income through internship under OPT in 2008, which is above $5,000 and is reported in W-2 form. I have filed 1040NR-EZ 2008 tax return but was denied the $5000 tax exemption, as I result I received $750 less in return. So I have two questions. (1) Am I still eligible to the $5,000 tax exemption under the US-China Treaty Article 20(b)? (2) if I am eligible to the exemption, what is my recourse to get the $750 tax return back?

Thank you very much.

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In my opinion, you ARE eligible for the $5,000 treaty exemption, but you must prove a "closer connection" with China in order to claim it. This is done with a statement submitted with Form 8843, and with an amended return using Form 1040X.

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