Thanks for breaking down the forms! If I do decide to file manually, does Schedule C require me to track a bunch of expenses? I literally just got paid for working shifts operating rides, no expenses or anything.

Schedule C is where you report your business income and expenses, but you don't have to have expenses to file it. If you didn't have any business expenses, you can just put $0 in those sections. You'll report your total 1099-MISC income ($940) as gross income on Schedule C, then since you have no deductions, that same amount becomes your net profit. This net profit gets transferred to your 1040 and is also used to calculate your self-employment tax on Schedule SE. Keep in mind you'll owe about 15.3% for self-employment tax (covers Social Security and Medicare) on your earnings, so set aside roughly $144 if you haven't already. The tax software would calculate this automatically, which is one advantage of using it.

Good point! What's the usual threshold for state filing requirements? I have about $1200 in freelance income and wondering if I need to worry about state.

Thanks for this tip about combining smaller accounts! Would I just add them up and list them as "Various - Small Accounts" on one line? And do I need to attach anything showing the breakdown of those combined accounts?

Yes, you would just add up all the smaller interest amounts (those under $10 each) and list them as "Various - Small Accounts" on a single line of Schedule B. You don't need to attach a breakdown of these combined accounts to your tax return. However, you should keep your own detailed records showing which specific accounts were included in that combined entry. This is just for your personal records in case you're ever questioned about it during an audit. The IRS generally isn't concerned with the breakdown of small interest amounts, but having your documentation ready is always good practice.

Does TurboTax do this too? I'm using the Premier version this year and have about 20 interest payers.

Yes, TurboTax handles this as well. The Premium, Deluxe, and Premier versions all support unlimited interest payers and will automatically generate the proper attachments. When you enter more than 14 interest sources, it will create continuation sheets formatted to IRS standards. When you print or generate your final return PDF, you'll see these continuation sheets included in the package. If you're e-filing, it's all handled seamlessly. If you're printing and mailing, just include all the pages TurboTax generates. The software takes care of all the proper labeling and "See attached" notations on the main form.

Wait, I hadn't even thought about state taxes! Thank you for bringing this up. So even though I was only in Texas for a few months as a baby, if it had been a state with income tax, I might have needed to file there too? That's wild! Do you know if there's a similar "streamlined" process for state tax compliance?

You generally only need to worry about state taxes if you have current ties to that state (property, income from there, voting registration, driver's license, etc.). Since you left as a baby and have no connections, most states wouldn't consider you a resident. State tax amnesty programs vary widely by state. If you had been born in a high-tax state like California, you might have needed to address it, but their Voluntary Disclosure Program typically looks at fewer years than the federal program. Again, for your Texas situation, it's not a concern, which is one small piece of good news in this complicated situation!

The exit tax typically applies if your net worth is over $2 million or your average annual net income tax for the 5 years ending before the date of expatriation is more than $172,000 (2021 figure). The $50k investment alone wouldn't trigger covered expatriate status.

This is super helpful! I just dug through all my tax paperwork and found only a 1095-B form from my parents' insurance company. There's definitely no 1095-A anywhere. Is this something I can just point out to my CPA to fix the problem?

Yes, that's exactly what you need to do! Show your CPA the 1095-B form and explain that you were covered under your parents' employer plan, not a Marketplace plan. The 1095-B is proof of minimum essential coverage and doesn't involve any premium tax credits. If they prepared Form 8962 for you, ask them what information they used to complete it since you never received a 1095-A. They should immediately recognize the error once you point this out. If they still insist there's a tax credit issue after seeing your 1095-B, I'd strongly recommend finding a different tax professional because this is a very basic distinction that any competent preparer should understand.

Here's a super simple breakdown: 1095-A = Marketplace insurance (Healthcare.gov or state exchanges) - might involve tax credits that affect your taxes 1095-B = Other health insurance (employer plans, Medicare, etc.) - just proves you had insurance, doesn't affect taxes 1095-C = Large employer health insurance - also just proves coverage, no tax impact If you only have B or C forms, you're good! Just keep them for your records. Only the A form creates potential tax credit issues.

That's a smart idea! How did you verify they knew what they were doing though? I'd be nervous having another student handle my taxes. Did they make you sign any kind of waiver in case they made a mistake?

I checked that the student had completed advanced tax courses, including international taxation, and was in the master's accounting program. The professor supervision was key - I actually met with both of them for the initial consultation, and the professor reviewed the final forms before submission. No formal waiver was required, but we did have a simple email agreement outlining what they would do and the fee. The accounting program treated this as a practical training opportunity, so they were motivated to get it right. The student was actually incredibly thorough and found deductions I didn't know I qualified for, even with the non-resident limitations.

What software did you try using? I was thinking about trying TurboTax for my amendment but now I'm nervous...