My client is a foreign student with treaty exemption. her W-2 box1 shows an income but no income tax withheld. In preparing her 1040-NR, I entered W-2 box 1 amount on Line 1a, and the same amount is shown as exempt on Line 1k "total income exempt by a treaty under schedule OI". I expect this will result in -0- AGI on Line 11, but end up the treaty-exempt amount did not reduce the W-2 income, AGI (Line 11) is still showing W-2 box 1 amount.
What I've missed in making this exemption work in the 1040-NR form?
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