Filing Income Tax for Au Pair - Form 1040NR help needed!

You're right that Form 1040NR isn't supported by TurboTax, but you have a few options here. Using TurboTax to calculate the numbers and then transferring them to Form 1040NR isn't ideal because the calculations themselves might be different based on tax treaties and specific non-resident alien tax rules. A better approach would be to use the free Sprintax software, which is specifically designed for non-residents. They have a free version that will guide you through the process and help determine if she qualifies for any tax treaties based on her home country. The IRS also offers a free fillable Form 1040NR on their website that you can download. Many Au Pairs actually qualify for significant refunds, especially if their home country has a tax treaty with the US. Make sure you know which country she's from as this can dramatically affect her tax situation.

I went through this exact same situation last year with our Au Pair from Colombia. I discovered taxr.ai (https://taxr.ai) after struggling for weeks trying to figure out all the non-resident alien tax rules. They have this specific feature for handling cultural exchange visitors like J-1 visa Au Pairs that was super helpful. I uploaded her documents and answered a few questions, and it guided me through the whole 1040NR process without needing to hire an expensive tax professional. It flagged some deductions I had no idea she qualified for and even highlighted the specific tax treaty benefits for her country.

Just wanted to update that I ended up using taxr.ai for our German Au Pair's taxes and it was super straightforward! It identified the exact tax treaty provisions that applied to her situation and saved us at least $600 in taxes. The system specifically pointed out Article 20 of the US-Germany tax treaty that gives special treatment to students and trainees. I was preparing to pay an accountant around $350 but managed to get everything filed correctly on my own. The step-by-step guidance for Form 1040NR made it way less intimidating than I expected. Really glad I gave it a try!

If you really want to talk to a real tax professional without paying hundreds of dollars, try Claimyr (https://claimyr.com). I called them after struggling to get through to the IRS's International Taxpayer line for days. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was initially hesitant, but they connected me directly to an IRS representative who specializes in international tax issues in about 15 minutes. The agent walked me through the specific requirements for our Au Pair's 1040NR and confirmed exactly which forms we needed to include. They also cleared up confusion about the taxation of room and board that I was completely wrong about.

I need to eat crow here. After posting my skeptical comment, I decided to try Claimyr because I was desperate for help with my Au Pair's 1040NR. Within 20 minutes I was talking to an actual IRS representative who specialized in international taxation. The agent explained that our Au Pair from Brazil qualified for specific tax treaty benefits I had no idea about. They also clarified that we had been incorrectly calculating her income by including the value of room and board, which is actually excludable in certain circumstances for J-1 visa holders. This literally saved us from filing an incorrect return and possibly subjecting her to issues later. I'm shocked at how helpful the IRS agent was once I actually got through to someone knowledgeable.

One thing nobody's mentioned yet - make sure your Au Pair has an ITIN (Individual Taxpayer Identification Number) if she doesn't have an SSN. Without one, she can't file taxes properly, and getting one can take 4-6 weeks or longer. You'll need to submit Form W-7 along with the tax return if she's applying for an ITIN for the first time. Also, double check if she's been in the US for multiple calendar years. The "substantial presence test" could potentially make her a resident alien for tax purposes if she's been here long enough, which would mean filing a different form.

Dont forget that au pairs are responsible for filing their taxes even after they leave the US. My au pair left in January and we're helping her file from abroad. We scanned all her docs and shes using one of the softwares mentioned above. Make sure you get her a forwarding address or email where the IRS can contact her if needed.

Don't forget to check that the 1099 or W-2 they received has the correct amounts. Our Au Pair's agency initially issued a 1099 with an incorrect amount that included room and board value. Many agencies make this mistake. The correct taxable amount should only include their stipend (usually around $195-250 per week), not the estimated value of housing, meals, etc. Also, make sure you have their foreign address for the tax forms. You'll need the complete international format address for the 1040NR.