Hi there.

I would like to seek guidance on entering the return for a client who is here on a J1 visa as a teacher, working for a US educational institution.  According to the Tax Treaty Article 21, the teacher income is exempted under this treaty for the first 2 years.  The client came here in August of last year, 2019.

I put on Line L of Schedule OI the total income received (Box 1 of W2) as income exempt, this then went to Line 22 of the 1040-NR.  However, a tax is still calculated based on the tax table.

I couldn't find any other sections on ProConnect where to put the tax exemption - so under Other Income - Misc, I put the income as a deduction for both 1040-NR and CA 540-NR.

I want to know if this is correct.  I called the IRS and I was told that unfortunately the 1040-NR is an advanced tax law that the IRS Practitioner Hotline does not support.

I'd appreciate any inputs.  Thank you.