My status is:
From 1/1/2007 to 7/30/2007, stay in the US carrying F-1 visa.
From 8/1/2007 to 12/31/2007, stay in the US carrying J-1 (trainee) visa, hosting company is private company.
I am from China, PRC

My question:
1. I got a $2500 reward from a school organized contest (under F-1 status), is that a taxable income?
2. I got a $2000 interest rate from Paypal, is that a taxable income?
3. What are the items that can be deductible or exempted in my case?
Thanks a lot!

1) Yes, it is taxable. Claim it on Line #21 of Form 1040NR as "OTHER INCOME".

2) Yes, that IS taxable income, as it is NOT from a bank, but rather a mutual fund.

3) You can claim the $5,000 China treaty exemption.