The U.S./ China tax treaty does not have a time limitation and an F-1 or J-1 student from China who qualifies for the treaty can use the treaty benefit as long as he/she is a student in good standing, including the period of time the student is engaged in practical/academic training after graduation.
This means that even after a student from China becomes a resident for tax purposes under the substantial presence test, he/she may still claim the U.S./China tax treaty benefit.
The tax treaty allows:
- $5000 exemption for wages per year: Article 20(c)
- Unlimited exemption for scholarship per year: Article 20(b)
To claim the tax treaty on a resident return:
- Line #7: write in "includes wages exempt by U.S./China tax treaty of $5,000"
- Line #21: write in "see attached Form 8833" and enter the total dollar amount of the tax treaty exemption you are claiming.