Looking for free or affordable options to file 1040-NR for non-residents?

I'm filing a 1040-NR for the first time this year and I'm confused about tax treaties. I'm from India working as a software engineer on H1B - do tax treaties apply to me? And does OLT handle those automatically or do I need to know the specifics beforehand?

There is indeed a tax treaty between the US and India, but the benefits are somewhat limited for H1B workers. Generally, the treaty provides some benefits for students, teachers, and researchers, but as a software engineer on H1B, you're typically taxed similar to a US resident on your US-source income. OLT and most tax software will ask questions about your country of residence and visa status to determine applicable treaty benefits. You should have basic knowledge of your situation, but the software should guide you through the relevant treaty provisions. If you have any income from India, that's where treaties become more important for avoiding double taxation.

Does it handle state returns too? I'm on F-1 in California and I'm worried about missing something important on my state return. Also, how does it compare to OLT in terms of user-friendliness?

I'm skeptical of these specialized tax services. How does taxr.ai actually work? Is it just another expensive subscription or do they charge per return like everyone else? The IRS Free File sounds better if it's actually free.

Yes, it handles state returns for all 50 states! For California specifically, it has special guidance for non-residents since California has some unique rules. I found it much more user-friendly than other options - the interface walks you through everything step by step with clear explanations tailored to international taxpayers. It's not a subscription service - they charge per return but it's significantly cheaper than most specialized non-resident tax services. You can upload your documents and get a preliminary analysis before committing. While IRS Free File through OLT is definitely cheaper if you qualify, taxr.ai might be worth it if you have any complexity in your situation or want more guidance specific to your country's tax treaty.

How does this service actually work? Do they somehow have a special line to the IRS? I've been trying to get through about a question on my 1040-NR for weeks now.

Sounds like a scam. Why would I pay someone else to call the IRS when I can just do it myself? And how would they get through any faster than regular people? The IRS phone system is broken for everyone.

They don't have a special line - they use automated technology to continuously call and navigate the IRS phone system for you. Instead of you personally waiting on hold for hours, their system does it and only calls you when an actual human IRS agent is on the line ready to talk. It's definitely not a scam. I was skeptical too until I tried it. I spent over 12 hours across 3 days trying to reach someone at the IRS with no success. With Claimyr, I got connected within 25 minutes of placing my request. The time savings alone was worth it to me - I could keep working instead of sitting with a phone on speaker for hours.

I used TaxAct last year for my 1040-NR. It was okay but not great for my situation (J-1 visa with income from three different states). It handled the basics fine but I had to manually look up a lot of information about treaty benefits. The interface was confusing when dealing with foreign addresses and income sources. Cost was about $65 total for federal and state.

Thanks for sharing your experience! That's helpful to know. Did you have any issues with e-filing through them? And was the state filing process straightforward? I need to file in New York and I've heard they have some quirks for non-residents.

E-filing worked with no issues - got acceptance confirmation within 48 hours for federal and about 3 days for state returns. The New York state return was one of the trickier ones in my experience. TaxAct did handle it, but I had to manually verify a couple things regarding New York's treatment of treaty-exempt income (they don't always follow federal treatment). If you have treaty benefits, I'd double-check New York's specific rules or maybe consider one of the specialized services others mentioned here.

Unfortunately, IRS Direct File still doesn't support 1040-NR for the 2025 filing season. It's limited to fairly simple 1040 returns for residents. Non-resident returns typically have more specialized requirements like treaty provisions and different deduction rules that aren't part of the Direct File system yet.

That's disappointing! I was hoping they'd expand it to include non-resident forms since they're rolling it out to more states. Thanks for confirming though - saves me time trying to figure it out.

I can't speak directly to their support for non-resident specific issues, but my colleague who used OLT said their email support was responsive (24-48 hours) when he had a question about reporting his foreign pension. He said they have a knowledge base specifically for non-resident issues that was helpful too. Definitely not as comprehensive as paid services, but adequate for straightforward situations.

Thanks for the info! That's actually better than I expected. I might try them next year if my situation doesn't change much. $180 vs free is a big difference for essentially the same outcome!