Something nobody's mentioned yet is that you should request a copy of the partnership agreement if you don't already have it. When you inherited your share, it should have come with documentation about the partnership terms. Some partnership agreements actually restrict distributions and require capital reserves to be built up to certain levels before making distributions. This could explain why you're seeing income on the K-1 but not getting much in distributions. Also, check if there's a partnership meeting you can attend. As a partner, you generally have rights to information about the business operations and financial status. You might discover they're planning major renovations or have other reasons for retaining earnings.

Check out line 19 (distributions) of your K-1 and compare it to line 2 (real estate income). If line 19 is consistently lower than line 2, that means the partnership is retaining earnings rather than distributing them. This is common but can create tax headaches. Also, make sure you're tracking your "basis" in the partnership. Your basis increases when you report income from the K-1 and decreases when you receive distributions. This tracking is SUPER important because: 1) If you ever sell your interest, your basis determines your gain/loss 2) If your basis ever goes to zero, distributions become taxable 3) Certain losses can be limited based on your basis Most tax software doesn't handle basis tracking well, so you might need to maintain a separate spreadsheet or get professional help.

3 You definitely need to check your paystubs throughout the year to catch withholding problems before filing time! A good rule of thumb for single filers is that roughly 12-15% of your gross income should go to federal taxes when you make $30k-$40k. So with $36k income, you should have had about $4,300-$5,400 withheld throughout the year. If you only had $105 withheld, that's less than 0.3% of your income! No wonder you owe so much. For the future, always check your first couple paystubs after starting a new job or submitting a new W-4 to make sure the withholding looks reasonable.

14 This is why our tax system is so messed up! You shouldn't need special tools or services just to pay the right amount. I had a similar issue last year - thought I was doing everything right and still ended up with a huge bill. Has anyone used any good tax software that helps prevent this kind of surprise? I've been using FreeTaxUSA but it doesn't really help with planning for next year.

If you have your bank statement showing the payment cleared, another option is visiting your local Taxpayer Assistance Center in person. You need to make an appointment first by calling 844-545-5640. They often can pull up your records on the spot and see what happened to your payment. When I had a similar issue, the in-person IRS assistant saw that my estimated payment had been correctly received but was applied to the wrong tax year (they applied it to 2021 instead of 2022). She fixed it right there in the system while I waited!

Did you check your IRS online account to see if the payment shows up there? Sometimes the payment posts correctly to your account but doesn't get matched to the return properly. Go to irs.gov and create/login to your online account - you can see all payments received there.

For cheap filing of 1040-NR with such a small amount, go with FreeTaxUSA. They charge around $15 for the federal nonresident return. I've used them for the past three years for my 1040-NR filings with an ITIN. Just be aware that the interview process doesn't always address every nonresident situation, so you might need to double-check some entries. But for a simple return with just $410 in business income, it should be straightforward.

Just a heads up - make sure you're actually required to file. For nonresidents with just US business income, you generally need to file if you have a US trade or business regardless of the amount. If it's just passive income under $4000 though, you might not need to file at all. But since your goal is keeping the ITIN active, filing makes sense. Just wanted to clarify that point.

Does anyone know if there's a tax benefit to paying back a 401k loan early? Like can I deduct the interest or anything if I pay it back faster than the 5 year term?

Something that really bit me - I took a 401k loan and then my company got acquired 3 months later. The new company's plan didn't accept loan transfers, so I had to either repay the full amount within 30 days or have it treated as a distribution. I ended up with a huge tax bill because I couldn't come up with the cash that quickly. Just something to consider if there's any chance of company changes on the horizon!