I was in this situation a few years ago. Make sure your employer is using the correct withholding tables for nonresident aliens! Many HR departments just default to the regular withholding without understanding that NRAs can't claim the standard deduction. For the penalty, file Form 2210 and check the box in Part II that says "The taxpayer requests a waiver of the penalty." Attach a statement explaining that you're new to the US tax system, on a TN visa, and that your employer was withholding incorrectly despite your best efforts. I did this and the IRS waived my penalty completely. It's worth a try!

Diego, you've actually done a really thorough job identifying the key forms! As someone who went through this exact situation on my TN visa, I can confirm you're on the right track with the 1040-NR, Schedule A, Schedule OI, and Form 8840. A few additional considerations based on what others have mentioned: **FBAR reporting** - Since your Canadian checking account exceeds $10,000 USD equivalent, you'll need to file FinCEN Form 114 separately by April 15 (with automatic extension to October 15). **Form 8938** - With your TFSA and Canadian accounts combined, you might exceed the reporting threshold for foreign financial assets. This is separate from FBAR and filed with your tax return. **PFIC complications** - If your TFSA contains mutual funds or ETFs, each one technically requires Form 8621. This is where things get really complex and expensive if you're not careful. **Treaty benefits** - Form 8833 can help you claim specific benefits under the US-Canada tax treaty that might reduce your tax burden. For the underpayment penalty, definitely request first-time penalty abatement since this is your first US filing. The IRS is generally reasonable about waiving penalties for newcomers who made good faith efforts to comply. Your employer should really be using NRA withholding tables since you can't claim the standard deduction. This is a common HR mistake that leaves TN visa holders with unexpected tax bills. You might want to have them adjust this going forward and consider making estimated payments if they can't fix the withholding immediately.

Did you check if you qualify for education credits? Since you mentioned you just got out of college, you might be eligible for the American Opportunity Credit or the Lifetime Learning Credit if you paid for educational expenses in the past year.

One thing that might help explain your situation is to look at your actual tax liability vs. what was withheld from your paychecks. With your total income of around $56,300 ($17,800 + $38,500), you're definitely in a higher tax bracket than what each individual employer was probably calculating when they withheld taxes. The multiple job issue that others mentioned is spot on - it's one of the most common reasons for smaller refunds or even owing money. Each employer's payroll system calculates withholding as if their job is your only income source, which can lead to significant under-withholding when combined. For next year, I'd definitely recommend using the IRS withholding calculator mid-year to check if you need to adjust your W-4. You might need to claim fewer allowances or request additional withholding on line 4(c) to avoid this surprise again. The $400 charitable donation will help a little, but it's relatively small compared to your total income. Also worth double-checking those education credits that Mohammed mentioned - if you paid any qualified education expenses this year, that could significantly boost your refund!

One more thing to note - if you used Column Tax through Nerdwallet last year but create a brand new account directly with Column Tax this year, you won't automatically see last year's info. You need to use the same login credentials you created originally. I made this mistake and ended up with two accounts. Had to contact support to merge them. Save yourself the headache!

Just wanted to share my experience for anyone else dealing with this Column Tax situation. I was panicking like Lucas because I couldn't find it anywhere through the usual channels I used last year. After reading through all these comments, I went directly to columntax.com and was able to log in with my old credentials - everything was there! However, I did run into the same pricing issue that Natalie mentioned. My return that qualified for free filing last year is now requiring the Premium upgrade. I decided to bite the bullet and pay the $89 since all my info was already there and I really didn't want to start over with a new platform this close to the deadline. The filing process was just as smooth as last year, so at least the product quality hasn't changed even if the pricing structure has. For anyone on the fence about paying vs switching to a different service - if you have a relatively straightforward return, it might be worth exploring FreeTaxUSA like Noah suggested. But if you have multiple income sources or more complex deductions, the time savings of having everything pre-populated in Column Tax might justify the cost.

Did the court specifically classify the additional amount as "punitive damages" or as "statutory damages"? This can make a difference for tax purposes sometimes. Statutory damages might be treated differently than punitive damages in certain cases.

One thing to also keep in mind is timing for next year's filing - since you won the case in 2025, you'll need to report the taxable portion (that extra $1,600) on your 2025 tax return that you'll file in early 2026. Don't try to amend your 2024 return or anything like that. Also, if this was a significant amount relative to your usual income, you might want to consider making an estimated tax payment for Q1 2026 to avoid any underpayment penalties. The IRS generally expects you to pay taxes on income as you receive it, not just when you file your return. Keep all your court documents, the original lease showing the deposit amount, and any correspondence with the landlord. These will be important if the IRS ever has questions about how you determined what portion was taxable vs. just a return of your own funds.

Just want to mention from personal experience - even though you technically don't need to use the 1098-T as a non-resident, I STRONGLY recommend keeping a copy of it with your tax records. The IRS occasionally sends verification requests, and having documentation of your tuition and scholarship amounts has saved me a lot of trouble in the past. Better safe than sorry!

As someone who went through this exact same confusion last year, I completely understand your frustration! The key thing to remember is that as a non-resident filing Form 1040-NR, you're not eligible for education credits like the American Opportunity Credit, which is the main reason US residents use Form 1098-T. However, you still need to report any taxable scholarship income. Since your Box 5 amount exceeds Box 1, you likely have some taxable scholarship income - typically the portion used for living expenses rather than qualified educational expenses like tuition and required fees. My advice would be to: 1. Calculate how much of your scholarship went toward non-qualified expenses (room, board, personal expenses) 2. Check if there's a tax treaty between Nigeria and the US that might provide exemptions for students 3. Keep all your documentation even if you don't directly use the 1098-T on your return The Nigeria-US tax treaty does have provisions for students, so definitely look into that. You might also want to consult your university's international student services - many offer free tax help during filing season and they're familiar with these specific situations for non-residents.