[andywhale]

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!

[MukatA]

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

[andywhale]

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?

[MukatA]

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

[andywhale]

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

[andywhale]

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

[andywhale]

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.

[andywhale]

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"

[AtlantaTaxExpert]

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.