Yes! I have read the Treaty many times, and I have prepared Form 1040NR forms in the past with issues  (with W-2 income only).  We all know that the tax language can be unclear.

According to the Tax Treaty language, I do believe 1099 income qualifies for Income Tax Treaty exemption (wages or compensation for personal services provided in the US), and it is the client's tax software that is having issues.

Thanks!

SW