FICA and Medicare not exempted
Use 1040 is all right. I don't have the material at hand. But basically you have to fill out 1040, 8233 forms and on 8233 form you have to explain why your income is tax exempt. My colleague got his tax refund for last year. This year, he went to payroll office and filled out a form. So they don't withhold the tax for him this year.