idk why but this whole thing of kids getting 1099s is wild to me. back in my day we just had lemonade stands 👴

Just to add some clarity here - yes your child can absolutely receive a 1099 at any age! Since they made $600 from content creation, whoever paid them should issue a 1099-NEC if it was from a single source. The key things to remember: 1) They'll need to file their own return since it's self-employment income over $400, 2) You can still claim them as your dependent, and 3) Definitely set aside money for taxes (self-employment tax is 15.3% plus regular income tax). Also make sure to track all business expenses - equipment, internet costs, etc. can be deducted!

I've been in a similar situation and unfortunately learned the hard way that there's really no mechanism to get estimated tax overpayments back mid-year. The IRS system just isn't set up for that - they basically treat all your payments (estimated taxes, withholding, etc.) as one big pot that gets reconciled when you file your return. One thing I wish I had known earlier is that you can actually calculate the "safe harbor" amount to avoid underpayment penalties. If you pay at least 100% of last year's tax liability (or 110% if your AGI was over $150k), you won't get hit with penalties even if you underpay during the year. This might help you feel more comfortable reducing future estimated payments if you find yourself in this situation again. Also, definitely file as early as possible in January to get that refund back quickly. I filed on January 20th last year and had my refund within 2 weeks via direct deposit.

I've been dealing with this exact issue for the past couple of years since I started getting RSUs. What really helped me was setting up a spreadsheet to track my withholding throughout the year - I include regular payroll withholding, supplemental withholding from stock vests, and my estimated payments all in one place. The key insight I learned is that supplemental income (like stock compensation) gets withheld at a flat 22% rate, which might not match your actual marginal tax rate. If you're in a lower bracket, you're probably overwithholding on those vests, and if you're in a higher bracket, you might be underwithholding despite it feeling like they're taking a ton. I now review my withholding situation after each major vesting event and adjust my remaining estimated payments accordingly. It's saved me from both overpaying (like your situation) and underpaying with penalties. The IRS actually has a pretty decent withholding calculator on their website that you can use mid-year to figure out if you need to adjust your W-4 or estimated payments. Unfortunately, you're stuck waiting for your refund, but at least you won't owe any penalties for overpaying!

I just went through this exact same situation a few months ago and can confirm what others have said - you should only list "CANADA" on Schedule OI, not both countries. The key insight that helped me was realizing that even though the question asks about "during the tax year," it's specifically in the context of Form 1040NR which only covers your non-resident period. One thing I'd add that hasn't been mentioned yet - make sure you're also consistent with how you handle your Canadian tax obligations during that period. If you're claiming Canadian residency on Schedule OI, you'll likely need to file a Canadian tax return as well and potentially deal with foreign tax credits to avoid double taxation. Also, when you prepare your dual-status statement, be very specific about the exact date your status changed. I used the date I met the substantial presence test, and included a brief calculation showing how I arrived at that date. The IRS appreciates documentation that shows you've done your homework on the residency determination. Good luck with your filing - dual-status returns are definitely tricky the first time, but once you understand the logic behind separating the two periods, it becomes much clearer!

This is such a helpful thread! I'm in a similar dual-status situation (moved from UK to US mid-2024) and was getting completely different advice from different sources. The consensus here about only listing your foreign country (Canada) on Schedule OI makes total sense now - the form is specifically asking about your foreign tax residency claim for the period covered by 1040NR, not your entire tax year status. What I found most valuable in this discussion is the emphasis on consistency across all forms and the importance of proper documentation. I've been keeping detailed records of my entry dates and visa timeline, but I hadn't thought about including a summary of my substantial presence test calculation in the dual-status statement. One follow-up question for the group - has anyone dealt with state tax implications for dual-status returns? I'm wondering if state residency determination follows the same logic as federal, or if there are additional complications when you've moved between states and countries in the same tax year. Thanks to everyone who shared their experiences - this thread probably saved me from making some costly mistakes!

I've been using TaxSlayer Pro for my family trust returns and it's been a solid middle-ground option. It's significantly cheaper than Drake or the other high-end professional software, but still handles complex trusts well. The interface is pretty straightforward if you're comfortable with forms mode, and it includes good error checking to catch common mistakes. One thing I really like is that it doesn't try to oversell you on features you don't need - you pay for the 1041 module and that's it. The K-1 generation is reliable and the forms print cleanly. Customer support has been responsive the few times I've needed help. It's not as fancy as some of the newer AI-powered options people are mentioning, but for a straightforward complex trust filing, it gets the job done without breaking the bank or making you want to throw your computer out the window like TurboTax does.

I've been dealing with the same TurboTax frustration for my family trust! After reading through all these recommendations, I'm definitely going to try either TaxAct Estates & Trusts or FreeTaxUSA Business for next year's filing. One thing I'd add - if you do end up needing to contact the IRS about anything related to your trust return (like I did last year when they questioned some of my distributions), definitely keep that Claimyr option in mind. I spent literally an entire day trying to get through to them about a 1041 issue and got nowhere. The automated system kept dropping my calls after hours of waiting. For what it's worth, I've also heard good things about TaxWise from Universal Tax Systems, though I haven't tried it personally. It's supposedly designed more for small practices but might work for individual filers too. The key seems to be getting away from the consumer-grade software that tries to do everything but doesn't do trust returns particularly well. Thanks for starting this thread - it's exactly the kind of real-world comparison I needed to see!

Has anyone tried using the IRS's own free file options? I'm wondering if those let you itemize for free too. The commercial options all seem to have some kind of catch.

I went through this exact same situation last year! H&R Block kept pushing their $35 upgrade on me too. What I learned is that they're technically correct about the potential savings, but you definitely don't need to pay them for it. Here's what I'd recommend: First, gather up all your tax documents - mortgage interest statement (1098), medical bills, charitable donations, property tax records, etc. Then add them up yourself to see if they exceed the standard deduction ($13,850 if you're single, $27,700 if married filing jointly). If your itemized deductions are legitimately higher than the standard amount, then yes, you should itemize. But don't pay H&R Block for it! I switched to FreeTaxUSA mid-process last year and saved the upgrade fee while still getting the higher refund. Their interface is actually cleaner than H&R Block's too. The key thing to remember is that H&R Block's "free" version is really just a marketing tool to get you to upgrade. Other services like FreeTaxUSA, TaxAct, and the IRS Free File options include itemizing in their actual free versions.