Made $400 teaching languages online - do I need to file taxes as a freelancer?

Thanks for explaining this! I'm in a similar situation but I do graphic design. Do I need to get an EIN number or can I just use my SSN when I file? Also, can I deduct any expenses like my laptop or internet?

You can use your SSN for your Schedule C filing - an EIN is optional for solo freelancers unless you plan to have employees. Many solo self-employed people just use their SSN. Regarding deductions, absolutely! You can deduct ordinary and necessary business expenses like a portion of your internet based on business use percentage, software subscriptions for your design work, computer equipment (though items over $2,500 may need to be depreciated rather than deducted all at once), business-related education or courses, and even a portion of your home as a home office if you have a dedicated space. Just make sure to keep good records of all your expenses.

How accurate is it though? I've tried other tax tools before and they missed some deductions I could have taken. Does it handle situations for people who are not US citizens?

Does it actually help with filling out the forms, or just tells you which ones you need? I'm terrible with paperwork and the Schedule C looks intimidating.

It's extremely accurate - it's built on tax code rules and is constantly updated. It absolutely handles non-US citizen situations like yours. It actually asks about citizenship status to make sure it gives the right guidance for your specific situation. For filling out forms, it doesn't just tell you which ones you need - it walks you through exactly what goes where on each form with step-by-step guidance. It breaks down the Schedule C into simple sections and explains what expenses belong in each category. It even flags potential audit triggers to help you avoid problems.

Wait, how does that even work? How can they make the IRS call you when nobody else can get through? Sounds too good to be true.

Yeah right. I've been trying to reach the IRS for THREE MONTHS about my missing refund. There's no way some service can magically make them call you. This has to be some kind of scam.

It works because they use an automated system that continuously redials the IRS using their special algorithm until they get through, then they transfer the call to you. It's basically like having someone wait on hold for you, but with technology. They're actually legitimate - they've been featured in major publications like Forbes and The Washington Post. I was hesitant too, but when you think about it, it makes sense. They're just using technology to solve the hold time problem. They don't have any special "in" with the IRS - they just handle the painful waiting part.

Thanks for mentioning this! I had no idea about tax treaties. Do you know if I would need to file any special forms to claim these treaty benefits? And would I still need to file the Schedule C even if there's a treaty?

You would need to file Form 8833 to claim treaty benefits, and yes, you would still need to file Schedule C to report your self-employment income. The treaty doesn't exempt you from filing requirements, it just might reduce what you owe. Tax treaties vary widely by country, so check the specific one between the US and Portugal. Some treaties have special provisions for teachers, students, and researchers, so you might qualify for reduced taxation on your teaching income. But you definitely need to document everything properly.

I second this. TurboTax walks you through everything step by step and they have really good support if you get stuck. It's not free but it's worth it for the peace of mind.