My client is an international student (J1 visa) performing services at his graduate school.  He received a W2 last year, however this year he received a letter for Nonservice Fellowship Letter instead of W2 form.  When I entered this amount in "Other Income" line 8r of 1040NR, his federal balance is around $4k.  However, the letter he received states that this income is exempt since it's for services performed at school. Does anyone have any suggestion on how this situation should be handled?