Thank you for mentioning this! I just checked the 1099-MISC more carefully and they actually did withhold some tax (about $405). So when I file the 1040-NR with Schedule NEC, do I just list that amount as already paid? Is there a specific line for this on the form?

Yes, you'll report the income on Schedule NEC, and then on Form 1040-NR, there's a line for "Federal income tax withheld" (typically line 25c or similar depending on the tax year). This is where you'll enter the $405 that was withheld. This is actually good news for two reasons: First, it shows the company properly classified you as a foreign person. Second, if you qualify for a lower tax rate under a treaty, you might get some of that withholding refunded back to you. Make sure you attach a copy of your 1099-MISC showing the withholding when you file your return. And remember that you'll likely need Form 8833 to claim any treaty benefits if you're eligible for a rate lower than 30%.

I tried TurboTax for my 1040-NR last year and it was a disaster. They don't really support all the international forms properly. I ended up using Sprintax which is specifically designed for nonresident returns. It handled Schedule NEC and treaty claims much better.

Would this approach work in TurboTax too? I'm having almost the identical issue but with TT and a car my grandpa gave me that I donated to a local charity.

Yes, the approach works in TurboTax too. The key is the sequence of entering information. TurboTax tends to make assumptions if you immediately identify something as a gift. Enter the donation details first, then go back to modify the acquisition information. For TurboTax specifically, after entering the 1098-C information, look for the "Asset Information" section where you can edit the basis details. Enter what your grandfather originally paid for the car (estimate if needed) and when he purchased it originally. This establishes a proper basis instead of the $0 that TurboTax might default to.

That's not quite right. The basis absolutely matters with donated property, even vehicles. The deduction is limited to the LESSER of your basis or the gross proceeds reported on the 1098-C. So if your basis is $0 (which can happen with fully depreciated gifted property), your deduction would also be $0, even if the charity sold it for more.

I stand corrected! You're right about the "lesser of" rule. I checked Publication 526 and it does specify that for vehicle donations, your deduction is limited to the smaller of your basis or the gross proceeds from the charity's sale. This explains why the software is asking about the gift - it's trying to determine the basis. If the original owner had already fully depreciated the car (common for older vehicles), then the basis might indeed be $0, which would limit the deduction to $0 regardless of sale proceeds.

This is super important! If your parents claim you and claim the Lifetime Learning Credit for your education expenses, you cannot claim it too. Double check with your parents before filing.

I hadn't even thought about the insurance angle! I do have a small liability policy that covers me at craft shows. And I joined the local artisan guild last year ($175). Do you know if online courses count for professional development? I took a $350 course on advanced metalsmithing techniques.

Yes, online courses absolutely count for professional development! That $350 metalsmithing course is 100% deductible as long as it relates to your current business. Even somewhat related skills can qualify - like if you took a course on photography to better capture images of your jewelry for your website. The liability policy and artisan guild membership are definitely deductible as well. Keep the receipts for everything, and if the guild offers any events or shows, track expenses for those separately as they might fall under different categories.

You only deduct materials when they're actually used in products that are sold. So if you bought $2000 of silver but still have half unused, you'd only deduct $1000 (the used portion). Keep a simple inventory sheet tracking: 1) starting inventory value, 2) purchases during the year, 3) what was used in sold products, and 4) ending inventory value. You can use a basic spreadsheet for this.

Thanks so much for this info! It's reassuring to hear this is a known issue. For the sake of my own records, should I keep a copy of the original 1099-DIV along with a note about the adjustment I made? Just trying to be thorough in case questions ever come up.

Yes, definitely keep a copy of your original 1099-DIV form. I always recommend that clients maintain a simple document noting any adjustments they made when filing, along with the reason for the change. Just a basic note like "Adjusted Webull 1099-DIV Box 5 from $X.XX to match Box 1a amount of $X.XX due to reporting inconsistency" is sufficient. This creates a clean audit trail if you ever need to explain the adjustment. Though as I mentioned, these tiny discrepancies are so common with certain brokers that they rarely raise any questions. The IRS systems understand that small rounding differences occur, especially with fractional share investments.

I tried looking for an override button but couldn't find it in the newest version of TurboTax. Did they remove this option for 2025 filing season? Where exactly should I be looking?