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Do I need to file a return for 1042-S/1040NR again this year?

So I'm an international student who's been in the US for about 3 years now. Last year I received a 1042-S form for some scholarship money I got from my university. I remember filing a 1040NR form even though the treaty between my country and the US exempted me from taxes on that income. I just got my 1042-S form for this year again (around $18,500 in scholarship money), and I'm wondering if I need to go through the hassle of filing a 1040NR again? The scholarship is still exempt from taxes under the treaty, and I don't have any other US income since I'm not allowed to work off-campus with my visa. My university's international student office was super unhelpful - they just gave me a list of tax prep services but wouldn't answer my actual question. Does anyone know if I need to file a return in this situation? Thanks for any help!

Quick question - does the 1042-S/1040NR filing affect your ability to use tax preparation software? I tried using FreeTaxUSA last year and it couldn't handle my situation at all.

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Most of the mainstream tax software isn't great with international situations. I had decent luck with Sprintax which is specifically designed for nonresident tax returns, but it's not free.

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OLT.com actually has a decent nonresident version that handled my 1042-S and treaty benefits correctly. It's cheaper than Sprintax but still costs about $40-50 for federal filing.

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Just to add another perspective - I'm also an international student (from Canada) and went through this same confusion last year. Even though my scholarship was fully exempt under the treaty, I still had to file the 1040NR to officially claim that exemption. One thing that helped me was keeping really good records of which treaty article applied to my situation (Article XX for scholarships in the US-Canada treaty). The IRS wants to see that you're actively claiming the treaty benefit, not just ignoring the 1042-S form. Also, don't stress too much about making small mistakes on the form - the important part is filing it and clearly indicating your treaty position. I made a minor error on Schedule OI last year and the IRS just sent a letter explaining the correction, no penalties or anything scary. The whole process is definitely annoying, but it's worth it to stay compliant and protect your visa status. Good luck with your filing!

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Filed 1/31 - Transcript Still Blank After 2 Weeks. Anyone Else?

Filed my taxes on January 31st and my transcript is still completely blank. Been checking WMR and transcript daily but nothing is showing up yet. Starting to get worried since I need this refund badly. Anyone else file around the same time experiencing this?

I filed 1/29 and literally just got movement today! Give it time, your turn is coming soon ๐Ÿ‘

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congrats! what codes did u get?

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got that sweet 846 with a ddd of 2/21 ๐ŸŽ‰

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Filed 2/1 here and same situation - transcript still completely blank! Reading through these comments is actually really reassuring though. Seems like we're all just in the normal waiting period. @Kayla Morgan thanks for the professional insight about the 2-3 week timeline, that helps calm my nerves a bit. Guess we just gotta be patient even though it's torture when you're waiting on that refund ๐Ÿ˜…

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0505 Cycle Code No 846 - PATH Act Early Filer Still Waiting for Update

Filed early January with 0505 cycle code but still no 846 deposit code. On PATH act and accepted 1/18. Seeing others with same cycle getting updates but mine is still stuck. Starting to worry about early filing causing delays.

My transcripts just updated today! Also 0505 and PATH, filed 1/17. Getting DD on 2/28 ๐ŸŽ‰

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omg gives me hope! What time did yours update?

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Around 3am EST. Keep checking yours!

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Same cycle code here! Filed 1/19 and still waiting for my 846 to show up. The anxiety is real but seeing Natalia got her update gives me hope. Going to obsessively check my transcript at 3am now ๐Ÿ˜… Thanks for posting this - good to know we're all in the same boat with these early PATH filings!

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Does Tax Refund Go Through SBTPG or Direct to My Account?

Hey tax folks, I'm trying to figure out how my refund will arrive. Does everyone's refund automatically go through SBTPG or can the IRS also issue a direct deposit straight to your bank account? And if it does go through SBTPG, how long does that usually take? I'm a recent grad trying to budget for the next few months and would appreciate any insights! Thanks in advance for the help!

According to IRS Publication 1345 (Rev. 3-2023), tax preparers who offer Refund Transfer products must clearly disclose all fees associated with the service. Has anyone received an explicit breakdown of these fees when choosing this option? I'm trying to determine if my tax preparer followed proper disclosure requirements as specified in IRC ยง6695(f).

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As a recent grad myself, I totally understand wanting to budget accurately! Here's what I've learned: if you used free filing software like FreeTaxUSA or filed directly through the IRS website, your refund comes straight from the IRS to your bank account - no SBTPG involved. The 21-day timeframe is pretty reliable in my experience. However, if you used paid software like TurboTax or H&R Block and chose to have fees deducted from your refund, then yes, it goes through SBTPG first. They process it, take their cut (plus that processing fee others mentioned), and forward the rest to you. This usually adds 1-3 business days to the timeline. Pro tip for next year: even if money's tight, paying prep fees upfront saves you money and gets your refund faster. Good luck with your budgeting!

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Should I file a tax return for my child who has under $1250 in unearned income?

So I'm sitting here trying to figure out if I should file a tax return for my 14-year-old daughter. She has a small savings account that generated about $920 in interest last year, plus some dividends from stocks her grandparents gifted her that came to around $270 (so total unearned income is like $1190). I know she's under the $1250 threshold for unearned income, so technically she doesn't NEED to file. But I'm wondering if there might be some benefit to filing anyway? Like creating a paper trail or something for the future? Or maybe it's just unnecessary paperwork that will complicate things? Has anyone dealt with this before or have any advice? I'm trying to teach her about finances early, so maybe going through the tax filing process would be educational? Or am I just creating headaches for no reason?

Something nobody mentioned - if your child has ANY income tax withheld from those unearned income sources, filing is the only way to get it refunded! Check those 1099s carefully. My son had like $60 withheld from his dividend account which isn't much but it was HIS money that we got back by filing.

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This is such an important point! The same thing happened with my niece. She had about $40 withheld from some bond interest, and the only way to get that back was to file. The threshold for required filing doesn't change the fact that she was entitled to get her withholding back.

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Great question! I was in a similar situation with my 15-year-old last year. We decided to file even though we weren't required to, and I'm glad we did. Here's what I learned: 1. Educational value is huge - walking through the process together really helped him understand how taxes work before he gets his first job 2. We discovered he had about $25 in federal tax withheld from some mutual fund distributions that we got back as a refund 3. It creates an official record with the IRS, which can be helpful down the road The filing itself was pretty straightforward since it was just unearned income. We used the IRS Free File program since his income was well under the threshold for paid software. Took maybe 30 minutes total and he was proud to get his first "real" tax refund check. One tip: make sure to check the box indicating she can be claimed as a dependent on your return. That's easy to miss but important to get right. If you're leaning toward the educational aspect, I'd say go for it. The paperwork is minimal for such a simple return, and the learning experience was worth it for us.

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