F-1 Student from Germany, Five-Year Rule, Scholarship, Tax Treaty Benefits, 1042-S
I am a graduate student from Germany. I had been in the United States on a J-1 from 1998 to 1999 and from 2004 to 2005. I have been in the United States on an F-1 since August 15, 2006. According to the five-year rule, I am therefore a resident alien for tax purposes as of 2007.
My sole income in 2007 was a scholarship, which I understand is exempt from taxation without limit in time or amount according to article 20(3) of the tax treaty between the United States and Germany.
My institution sent me form 1042-S for my scholarship income for the first seven months of 2007. (At least that's my guess. The gross income the form states is exactly seven months of scholarship income, and I entered in August 2006, so that would be exactly twelve months on my F-1.) No tax was withheld.
Now, I have three questions:
(1) Am I correct in that my scholarship income is exempt from taxation, regardless of the five-year rule and my tax status?
(2) Which tax form should I use, and how do I claim tax treaty benefits (assuming that I indeed qualify, even as a resident alien)?
(3) What am I supposed to do with the information included in the 1042-S?
Thank you so much!
