I never have been involved with the program. But I did research some of the details in IRS Publication 17. It refers you to IRS Publication 526 for details and it is available online at http://www.irs.gov
under the publications section. Pages 4, 14, and 20 provide more details and those pages contain links to other sections dealing with exchange students.
Edit: Just noticed you are talking about using TaxAct and I am not familiar with that program.