Schedule OI, "exempt vs reduced" (NRA with W8-BEN filling 1040-NR).

nagnolesti
nagnolesti Member Posts: 2 Newcomer
in Filing my taxes

I'm NRA with W8-BEN, have to fill 1040-NR related to stock market PTP gains. Received K-1 from PTP issuer and four 1042-S from stock broker.

I have to fill Schedule OI - Item L (table with "Income Exempt From Tax"). I am trying to use my 1042-S data there, Income Codes (box1) are: 01, 01, 06, 37, Exemption Codes (box 3a) are: 00, 05, 00, 02 and Tax Rates (box 3b) are: 0.0, 0.0, 15.0, 0.0, all in appropriate order.

Income Code 06 are dividends, which are, by the article of treaty, reduced from 30% to 15% to IRS. Should this reduction be considered "exemption" for the purpose of Schedule OI - Item L, and reported there?

What about Income Code 37? Should it also be reported there?

Moreover, given that I have received four pages of 1042-S, of which two are with 01 Income Code, should I put them into table summed or separately (they have different Exemption Codes, 00 and 05)?

Regards

Best Answer

  • TaxMorgan
    TaxMorgan FreeTaxUSA Agent Posts: 126 image
    Answer ✓
    Hello nagnolesti,

    We do not support filing Form 1040-NR in our software, only Form 1040. Since you need to file Form 1040-NR I am sorry but you will need to find another tax service.

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