Has anyone actually calculated how much tax would be owed on $6500 of unreported dividends? If your income is $190k, you're probably in the 32% or 35% tax bracket, so we're talking about maybe $2000-$2300 in taxes, plus maybe 20% penalty, plus interest. That's not nothing, but also not something to lose sleep over if the alternative is filing amended returns and potentially triggering more scrutiny.

As someone who went through this exact scenario last year, I'd strongly recommend filing amended returns rather than waiting it out. I had about $4,800 in unreported dividends from 2021 that I completely forgot about, and I was in a similar income bracket to you. The IRS definitely does automated matching on dividend income - it's one of the most reliable income sources they cross-check because the 1099-DIV forms are filed electronically by brokerages. The fact that you haven't received a notice yet doesn't mean much; I've seen people get CP2000 notices 18+ months after filing. I ended up filing a 1040-X after consulting with a tax professional, and it was honestly the best decision. The additional tax was around $1,500 plus about $200 in interest, but no penalties since I voluntarily corrected it. If I had waited for them to catch it, I would have faced the 20% accuracy penalty on top of everything else. The peace of mind alone was worth it - no more wondering when that notice might show up in the mail. Plus, showing good faith by correcting your own mistake generally keeps you off their radar for future scrutiny.

One approach that worked well for my cousin and me was setting up an escrow account specifically for property taxes and other shared expenses. We each contribute our 50% share monthly (so about $283 each per month for your $6,800 annual tax bill). The account automatically pays the tax bill when due, and we both have access to statements showing exactly what each person contributed. This removes the stress of one person having to front the entire tax payment and wait for reimbursement. It also creates a clear paper trail for tax purposes since each person's contributions are documented. Most banks can set this up as a simple joint account with automatic transfers from your individual accounts. Just make sure the account agreement specifies that each person owns their contributions, not 50% of the total balance. The key is getting this arrangement documented in your co-ownership agreement so both the monthly contributions and the purpose of the account are legally clear. This way if your brother's income becomes unpredictable, you're not scrambling to cover his portion at tax time.

I'd recommend getting a formal partition agreement drafted by a real estate attorney. This is different from just a co-ownership agreement because it specifically addresses what happens if the co-ownership relationship breaks down. In your partition agreement, you can include the 50/50 tax responsibility, but also cover scenarios like what happens if your brother stops paying his share for multiple years. The partition agreement can establish that if one owner defaults on tax payments, the other owner can pay the full amount and then has the legal right to either: 1) Place a lien on the defaulting owner's share of the property, or 2) Force a sale of the property to recover the unpaid amounts. This gives you real legal recourse beyond just having a piece of paper saying he owes 50%. Michigan law is pretty favorable for this type of arrangement, and having it properly recorded with the county clerk gives you maximum protection. The upfront cost of getting this done right (probably $500-800 for a good attorney) is way less than what you could lose if things go sideways with your brother's finances down the road.

Don't forget that as a nonresident alien, you might need to file Form 8843 in addition to your 1040-NR! This is especially true for students and teachers on F, J, M, or Q visas.

This thread has been incredibly helpful! I'm also a first-time filer on a work visa and was completely overwhelmed by the 1040-NR process. One thing I wanted to add - if you're working for a company, make sure to double-check that your employer has been withholding taxes correctly for nonresident aliens. My HR department initially set me up as a resident for tax purposes, which meant they were withholding based on the wrong tax tables. I had to get them to adjust it mid-year once I realized the mistake. Also, keep detailed records of your days in and out of the US throughout the year. The substantial presence test calculations can be tricky, and you'll need accurate travel records to determine your tax status for future years. I started keeping a simple spreadsheet after my tax preparer told me how important this documentation is. The software recommendations here look great - definitely going to try one of the specialized nonresident options rather than struggling with mainstream tax software that doesn't properly support 1040-NR forms.

Just want to add some clarity about the documentation requirements for charitable carryovers since I see some confusion in the thread. You absolutely need to maintain all your original receipts and acknowledgment letters from 2022 throughout the entire 5-year carryover period (through 2027 for your situation). For the $18,000 you donated in 2022, if any single donation was $250 or more, you need a written acknowledgment from the charity that includes the amount, date, and a statement about whether you received any goods or services in return. For non-cash donations over $500, you'll need Form 8283 each year you claim the carryover. One thing people often miss: you need to calculate your carryover amount based on your 2022 AGI limits, but then apply the remaining carryover against each subsequent year's AGI limits. So even if you couldn't use much in 2022 due to a lower AGI, you might be able to use more in 2024 if your income increased. I'd recommend creating a simple tracking document showing: original donation amount, 2022 AGI limit, amount claimed in 2022, remaining carryover balance, and then track how much you use each subsequent year. This will help you stay organized and avoid any issues if the IRS asks questions later.

I've been following this thread closely since I'm dealing with a very similar situation from my 2022 donations. One thing I want to emphasize that hasn't been mentioned yet is the importance of keeping detailed records of which specific donations you've already claimed versus which ones are still available for carryover. I made the mistake of not tracking this properly and ended up accidentally trying to claim the same donation amounts twice when preparing my 2023 return. Fortunately my tax software caught the error, but it was a real headache to sort out. My recommendation is to create a simple table with columns for: Original donation date, Charity name, Original amount, Year claimed, Amount claimed, and Remaining balance. Update it each year as you file your returns. This has saved me so much confusion, especially since I have carryovers from both 2022 and 2023 now. Also, regarding the AGI percentage limits - don't forget that if you're married filing jointly, you use your combined AGI to calculate the limits, which can significantly increase how much you can deduct each year compared to filing separately.

WARNING FROM SOMEONE WHO MESSED THIS UP! If this is your first year as 1099, DO NOT wait until April to pay everything! I did that my first year and got hit with almost $1,200 in underpayment penalties. The IRS expects you to pay as you earn (similar to how W2 withholding works), not all at once at the end. At minimum, make sure you're either: 1. Making quarterly estimated payments 2. Having extra withheld from a spouse's W2 job 3. Having enough withheld from another W2 job if you have one Don't learn this lesson the expensive way like I did!

As someone who made the transition from W2 to 1099 about 18 months ago, I can definitely relate to that overwhelming feeling! Here's what I wish someone had told me from the start: First, don't panic about the quarterly payments - they're basically just spreading your tax burden throughout the year instead of getting hit with a massive bill in April. I use a simple rule: every time I get paid, I immediately move 30% into a separate "tax account" that I don't touch except for quarterly payments. The biggest mistake I made early on was not tracking expenses properly. Even small things add up - software subscriptions, office supplies, professional development courses, even a portion of your internet bill if you work from home. I use a simple spreadsheet to track everything, but there are also apps that make it easier. Since you're planning to start a business next year, I'd recommend getting comfortable with basic bookkeeping now. It'll make that transition much smoother. Also, consider whether you want to form an LLC or stay as a sole proprietor - each has different tax implications. The learning curve feels steep at first, but once you get into a routine, it becomes second nature. You've got this!