Has anyone used TurboTax for reporting treasury bond accrued interest? I'm trying to enter this negative adjustment for the accrued interest I paid, but can't figure out where to put it.

Great question about treasury bond accrued interest! I went through this exact same situation last year and it was definitely confusing at first. You're absolutely correct that you shouldn't be taxed on interest that accrued before you owned the securities. The $875 you paid in accrued interest when purchasing in August is essentially prepaid interest that you can deduct from your taxable interest income. Here's what I did on my tax return: On Schedule B, I listed all the interest income exactly as shown on my 1099-INT forms. Then I added a separate line item showing the negative adjustment for purchased accrued interest. I wrote something like "Less: Purchased accrued interest on Treasury notes" and put "-$875" in the amount column. This effectively reduces your total taxable interest income by the amount of accrued interest you paid when purchasing the securities. Make sure to keep your purchase confirmations that show the accrued interest amount - the IRS may want to see documentation if they have questions. The key thing to remember is that when you eventually receive the full coupon payments, you'll be getting interest for the entire period (including the time before you owned the bonds), but since you already paid for that accrued portion upfront, you're only taxed on the interest you actually earned during your ownership period.

Something important no one's mentioned yet - if you do decide to file from your home country, be aware of the foreign postmark rule. The IRS considers your return timely filed if it's postmarked by the foreign postal service by the due date, even if it arrives at the IRS later. Keep proof of mailing (get a receipt from your postal service showing the date) and consider using a tracked service so you can confirm delivery. The IRS international mailing address is different from the domestic one, so make sure you're using the correct address. Also, currency conversion can be tricky when paying any balance due from abroad. The safest option is to arrange payment before leaving the US, either through direct pay on the IRS website or by sending a check with your return if you file before leaving.

I've been through this exact situation as an F-1 student and understand the time pressure you're facing. Here's what I learned: Given your 48-hour timeline, filing an extension (Form 4868) is definitely your best bet. You can complete this quickly online and it gives you until October 15th to file your actual return properly. For the extension, estimate your tax liability using the Sprintax calculation you already have. It's better to slightly overestimate than underestimate. You can pay online through the IRS Direct Pay system before you leave the country. Regarding your actual filing options when you have more time: I tried both Sprintax and the DIY approach. Sprintax is expensive but handles non-resident complexities correctly. The DIY route with 1040NR forms is absolutely doable - the new format is actually clearer once you understand the flow. For your Texas/California situation, you'll need the federal 1040NR plus a California non-resident return (Texas has no state income tax). One crucial point: DO NOT use TurboTax for non-resident filing. I've seen multiple students get into trouble because TurboTax classified them as residents, leading to incorrect deductions and potential penalties later when the IRS caught the error. File that extension now, then take your time to do it right from home. The stress relief alone is worth it!

One more thing to consider - if your amendment will result in OWING more tax, you should file it and pay as soon as possible. The 3-year deadline still applies, but interest and penalties on the additional amount owed start accruing from the original due date of the return. So the longer you wait, the more it will cost you!

This is really helpful information! I'm dealing with a similar situation with my 2021 return where I found some 1099s I had missed. One thing I learned from my tax preparer is that if you're amending to claim additional deductions or credits that result in a refund, there's actually a separate 3-year rule that can give you even more time in some cases. For example, if you're claiming a credit like the Earned Income Tax Credit or Child Tax Credit that you missed on your original return, you have 3 years from the original due date OR the date you filed, whichever is later. But if you're claiming a refund based on taxes you actually paid (like if you had extra withholding), you might have up to 2 years from when you paid the tax. The timing can get pretty complex depending on your specific situation, so it might be worth double-checking with a tax professional if you're unsure about which deadline applies to your particular amendment.

Does the 3-year carryback apply to options on futures too? I trade E-mini S&P options and had massive losses this year, but wasn't sure if they qualify for the same treatment as regular futures contracts.

Just wanted to add some practical advice for anyone considering the Section 1256 carryback - make sure you have all your trading records organized before starting the process. You'll need detailed records of your Section 1256 gains from the previous 3 years to calculate exactly how much you can carry back. Also, be aware that filing Form 1045 (Application for Tentative Refund) can sometimes trigger additional IRS scrutiny, especially if you're claiming large refunds. It's not a reason to avoid using the carryback if you're entitled to it, but just be prepared to potentially provide additional documentation if requested. The carryback can be a huge tax benefit for traders who have volatile years, but the paperwork can be complex. Don't let that discourage you from claiming what you're legally entitled to - just make sure you do it correctly or get professional help if needed.

Is there a specific term for this strategy? I've heard people call it "buy, borrow, die" but not sure if that's the actual financial industry term. Trying to do more research on it.

One thing to keep in mind is that even if you structure this as a loan arrangement, the IRS has something called "substance over form" doctrine. They look at the economic reality of the transaction, not just how it's labeled on paper. If you're essentially planning from the start to let the lender take your assets instead of repaying, the IRS could argue this was always intended as a sale, not a genuine loan. This could trigger immediate tax consequences and potentially penalties for trying to disguise a sale as something else. The safest approach is usually to treat any loan against appreciated assets as what it is - a way to access liquidity while maintaining ownership, with the understanding that you'll need to either repay the loan or face the tax consequences of disposition. The wealthy people you mentioned using these strategies typically have much more complex estate planning structures and legal teams to navigate the rules properly.