Thank you everyone for all this helpful information! I'm the original poster and I just wanted to update that I successfully completed my Schedule 1 using the advice here. You were all absolutely right - Line 16 is just the simple sum of lines 1-15 in the far right column. I ended up with $13,360 total ($8,700 business income + $410 capital gain + $4,250 unemployment) and made sure to transfer that exact amount to Line 8 on my Form 1040. I double-checked my math three times after reading about the software errors some of you experienced! One thing I learned from this thread is that I should probably consider getting help with next year's taxes since my side business is growing. The tips about taxr.ai and Claimyr are bookmarked for future reference. Really appreciate this community - you saved me from potentially making costly mistakes!

As someone who's been dealing with tax preparation for years, I want to emphasize something crucial that came up in this thread - the importance of keeping detailed records throughout the year. I see you mentioned business income of $8,700 from your side gig, and that's exactly the kind of income that can get complicated quickly. For next year, consider setting up a simple spreadsheet or using accounting software to track your business income and expenses monthly. This will make Schedule 1 much easier and could potentially save you money through deductions you might be missing. Business expenses like equipment, software, home office deductions, and even mileage can significantly reduce that $8,700 taxable income. Also, since you mentioned not trusting tax software after it messed up your state taxes, you might want to look into having a tax professional review your return before filing - especially with business income involved. The peace of mind is often worth the cost, and they can catch things that might save you more than their fee.

Has anyone dealt with the situation where disability gets approved retroactively? My father was in a similar situation where he got a lump sum payment that covered previous months, and it really messed up my tax return from the prior year.

This is exactly the kind of complex situation where getting professional guidance can save you both money and stress. Based on what you've described, you're likely eligible for multiple tax benefits, but there are some important details to consider. First, make sure you understand the "support test" - you need to provide more than 50% of each dependent's total support for the year. This includes housing, food, medical expenses, clothing, education, and other necessities. Keep detailed records of everything you pay for them. For your disabled parent, even though they're waiting for disability approval, as long as their current income is under the threshold and you're providing the majority of their support, you should qualify to claim them. When/if disability gets approved retroactively, you may need to reassess, but that's a bridge to cross later. Your minor sibling should definitely qualify as a dependent, and this could make you eligible for Head of Household filing status, which has significantly better tax rates than Single status. Don't overlook the medical expense deduction if you're paying for your parent's medical costs. While there's a 7.5% AGI threshold, with multiple dependents and significant medical expenses, you might exceed it. I'd strongly recommend consulting with a tax professional who has experience with these types of family caregiver situations, as the potential tax savings could be substantial and the rules can be tricky to navigate correctly.

Make sure you actually qualify for the American Opportunity Credit before accepting it! The requirements are different from the Lifetime Learning Credit. AOC can only be claimed for the first 4 years of post-secondary education and you must be pursuing a degree. LLC has no such restrictions.

This is such a common source of confusion! I went through the exact same thing last year. The key thing to understand is that most tax software has algorithms that automatically optimize your return by choosing the most beneficial credits and deductions available to you. What likely happened is the software determined you were eligible for both the Lifetime Learning Credit and the American Opportunity Credit, ran the calculations for both scenarios, and automatically selected the AOC because it resulted in a larger refund due to its partial refundability. The software should have shown you this switch somewhere in the review process, but it's often buried in the details and easy to miss. For future reference, you can usually find a summary of all credits applied in the final review section before filing. It's always worth double-checking that summary to understand exactly what credits and deductions are being claimed on your behalf. Your refund amount sounds completely legitimate if you qualify for the American Opportunity Credit!

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 made a terrible mistake last year with this exact issue! I thought I had updated my direct deposit info, but I missed clicking the final "Save" button after entering the new account details. My $3,400 refund went to my ex-spouse's account instead! 😱 It was a nightmare trying to get it back. Now I take screenshots of every confirmation page and double-check everything before submitting. TurboTax's interface can be really confusing with how it saves (or doesn't save) your banking changes. I'm so grateful for all the detailed advice in this thread - wish I had seen something like this last year!

I went through this exact same situation when helping my mom with her taxes! What finally worked for me was logging into TurboTax on a completely different device (I used my tablet instead of my laptop). For some reason, this bypassed whatever caching issue was causing the old account info to keep appearing. When I got to the direct deposit section on the fresh device, I was able to enter the new banking information without any auto-population from previous years. After entering the new info, I made sure to go through each review screen slowly and took a photo of the final confirmation page showing the correct account details. The refund went to the right account without any issues. Sometimes these web applications get "sticky" with saved data, and switching devices can be the simplest solution. Hope this helps with managing your parent's finances!