I am a non-resident of the USA with investments there - how to file US taxes without paying $800 for filing?

I've been living abroad for about 7 years but I've got some investments in the US market (mostly some tech stocks and a small rental property that my cousin manages). I just found out I need to file taxes in the US even though I'm not a resident there anymore. The problem is that when I contacted some tax preparers in the US, they quoted me around $800 just to file the paperwork! That seems crazy expensive considering my rental only makes about $1100 a month and my stock dividends are pretty minimal. I'm not trying to avoid paying what I owe, but spending nearly $800 just on preparation fees seems excessive. Does anyone know if there's a more affordable way for non-residents to file US taxes? Are there specific forms I need? Can I do this myself using some software? Any advice would be super appreciated as tax season is coming up and I'm getting stressed about it!

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18 comments

Oliver Becker

•8M

You can definitely file your own US taxes as a non-resident! You'll need to focus on two main forms: Form 1040-NR for your personal income tax return as a non-resident alien, and probably Form 8833 for treaty positions if your home country has a tax treaty with the US. For your rental property, you'll also need Schedule E to report rental income and expenses. The US typically withholds 30% of rental income from non-residents, but you can elect to pay tax on your net income instead (which is usually more favorable) by filing a tax return. For your stocks, you'll likely need to report dividend income. The standard withholding rate for non-residents is also 30%, but might be lower depending on tax treaties with your country. Most tax software packages like TurboTax or H&R Block can handle non-resident returns, though they might have specific versions for this purpose. The fees are typically under $100, way better than the $800 you were quoted!

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Oliver Becker

•8M

Yes, you'll need an ITIN (Individual Taxpayer Identification Number) if you don't have a Social Security Number. You can apply for one by submitting Form W-7 along with your tax return and supporting documentation that proves your identity and foreign status. Regarding state taxes, it depends on where your rental property is located. Most states will require you to file a non-resident state tax return if you have income sourced from that state, like rental income. Some states have more favorable tax treatment for non-residents than others, so check the specific requirements for the state where your property is located.

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Javier Hernandez

•8M

After struggling with the exact same situation last year (non-resident with US stocks and a small business interest), I found this amazing service called taxr.ai (https://taxr.ai) that saved me a ton of money and headache. They specialize in helping people in our situation make sense of the complex non-resident filing requirements without the crazy fees. I uploaded my financial documents, answered a few questions about my residency status, and their AI system identified exactly which forms I needed and walked me through the entire process. They even helped me claim treaty benefits I didn't know I was eligible for!

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Javier Hernandez

•8M

They absolutely handled state filings! I had investments in New York and Texas, and they guided me through the specific requirements for each state. For California, they'll definitely know the rules as it's one of the more complex states for non-resident taxation. They have a thorough verification process for non-resident status. I had to answer detailed questions about my time spent in the US, permanent home, and economic ties. They also requested documentation like foreign tax residency certificates and passport stamps to confirm my status. Their system flags any potential issues before submission to help prevent audit triggers.

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Emma Davis

•8M

I just want to follow up - I took the advice about taxr.ai (https://taxr.ai) and it was seriously a game changer! My situation was pretty much identical (non-resident with US investments) and I was getting quoted $650-900 by traditional preparers. The whole process took me about 90 minutes, and I ended up paying less than $100 for the filing. The system asked really specific questions about my country of residence and found a tax treaty benefit that saved me about $430 in taxes I would have overpaid! They also explained everything in plain language - I finally understand the difference between effectively connected income and FDAP income, which matters a lot for how my investments get taxed. Will definitely use them again next year!

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Malik Jackson

•8M

If you're having trouble getting answers from the IRS about non-resident filing (which is super common because their international tax line is almost impossible to reach), I highly recommend using Claimyr (https://claimyr.com). I spent WEEKS trying to get someone on the phone about my 1040-NR questions and foreign tax credits. I was honestly skeptical at first, but their system actually got me connected to an IRS agent in about 25 minutes when I had been trying for days on my own. Check out how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you once an actual human at the IRS is ready to talk.

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Malik Jackson

•8M

They use a system that continuously redials and navigates the IRS phone tree until it finally gets through. It's not that they have a "special line" - they're just automated and persistent. You provide the information about which department you need to reach, and their system handles the frustrating part. Definitely not a scam - I was super skeptical too! They don't charge anything unless they actually get an agent on the line. The way it works is they call you the moment they have an IRS agent ready to talk, so you don't waste hours on hold. For international tax questions especially, it saved me days of frustration.

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LunarLegend

•8M

OK I need to publicly eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to ask about Form 8833 treaty positions for my country. I'd been trying to reach the IRS for literally 2 weeks - either getting disconnected or told to call back another time due to high call volume. The Claimyr service had me talking to a real IRS international tax specialist in 47 minutes. I didn't have to sit there listening to hold music or worrying about being disconnected. The agent answered all my questions about treaty benefits for my investment income and confirmed I was filling out the forms correctly. Honestly would have paid double for this service considering how much stress it saved me!

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Ravi Patel

•8M

The filing threshold depends on your specific situation and income types. Generally, if you only have investment income subject to proper withholding at source (usually 30% or treaty rate), and no effectively connected income, you might not need to file. But there's no specific dollar threshold - it's based on whether the correct tax was already withheld. Regarding your property management fees - yes, you can absolutely deduct legitimate property management fees paid to your cousin. Just make sure the fees are reasonable (market rate) and documented properly with formal agreements and payment records. The IRS can scrutinize payments to relatives more closely, so keep good documentation showing these are genuine business expenses.

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