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For the 2016 tax year my wife transitioned from an F-1 Student to Green Card. Under the U.S.-China tax treaty she is exempt from paying taxes up to $5,000 of income. We have elected to treat her as a resident alien for the entire tax year to simplify our taxes. From the IRS website, she should still be eligible to claim the treaty even if considered a resident alien according to this line:
"The treaty allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States."
For the months she was a F-1 Student (and also now considered a resident alien), we want to claim the tax treaty benefit of $5,000 income tax exempt.
Line 5 of 8833 asks "Is the taxpayer disclosing a treaty-based return position for which reporting is specifically required pursuant to Regulations section 301.6114-1(b)?" I have gone over this section in the regulations and as far as I can tell the answer to this is No. The income she received in 2016 was working a normal private sector job. None of the income was based on investments or anything else out of the ordinary.
I just want to confirm that for line 5 the answer is No. Also, For the two checkboxes under the Address of residence, I believe I should be checking "The taxpayer is disclosing a treaty-based return position as required by section 6114." Is that correct?
"The treaty allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States."
For the months she was a F-1 Student (and also now considered a resident alien), we want to claim the tax treaty benefit of $5,000 income tax exempt.
Line 5 of 8833 asks "Is the taxpayer disclosing a treaty-based return position for which reporting is specifically required pursuant to Regulations section 301.6114-1(b)?" I have gone over this section in the regulations and as far as I can tell the answer to this is No. The income she received in 2016 was working a normal private sector job. None of the income was based on investments or anything else out of the ordinary.
I just want to confirm that for line 5 the answer is No. Also, For the two checkboxes under the Address of residence, I believe I should be checking "The taxpayer is disclosing a treaty-based return position as required by section 6114." Is that correct?
