I am a Chinese citizen. I was on a F1 (OPT) visa last year working for a non-profit research organization on a postdoc fellowship.

I have received a 1099-Misc for the fellowship and the total amount is mentioned in box 3. On the form, it is noted that the amount is "non-qualified fellowship" and should be reported to IRS. I was charged federal tax on that.

Now it is the last day for tax refund. I understand that even though it is a taxable fellowship, under China-US treaty article 20(b), I am still exempt for the fellowship tax and therefore should claim full refund. Am I correct?

Many thanks!

You will report this as Other Income. You will get treaty deduction of $5000.
Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

I forgot to mention that I got the fellowship award from a non-profit educational organization. According to article 20 (b): grants or awards from a government, scientific, educational or other tax-exempt organization.

Can I get a full exempt for the income in 1099, which is much more than $5000?

You are claiming that 1099-misc income is grant or award but 1099-misc does not say so. So check with your employer.

The 1099-Misc identified the amount in box 3 as "non-qualified fellowship". It is written on the form. As I understand, "non-qualified fellowship" is taxable fellowship for those that are not degree candidates. It is still a fellowship.

In a separate document, the payor instructs all us recipients to report the income on 1099 and identify the income as fellowship award when filing tax returns.

So I thought my income is "grants or awards from a government, scientific, educational or other tax-exempt organization" which is covered by US-China treaty article 20(b) . It is taxable for US citizens and other residents, and thus are considered as "non-qualified fellowship", but I have the treaty and of course I need to file 8833 to explain the treaty.

I just do not know if I am correct or not. Thanks

BTW, I want to express my deep gratitude to you for helping me at late night.

I forgot to mention that I also tried H&R Taxcut. I put the all the info on 1099-Misc into Taxcut and it automatically generated "awards" in line 21 of 1040. I don't know how it identified the income as awards.

Here is the complete note on my 1099-misc form

"amount reported in Box 3 is a non-qialified fellowship award and should be reported as other income on form 1040"

One hopes you filed Form 1040NR and claimed the treaty exemption for total income tax exemption for this income.

If not, contact me at [email protected] and we can discuss filing an amendment.