Non-Resident Alien filing 2025 taxes with 1099-B/DIV and wash sale - need help!
Hey everyone! I'm currently a grad student in the US as a non-resident alien trying to file my 2025 taxes and honestly feeling a bit overwhelmed. I've been dabbling in stocks this past year (learning as I go) and ended up with a wash sale on my 1099-B from Webull. The problem is I tried using Sprintax but it won't let me proceed with the wash sale situation. Taxback (their parent company) quoted me nearly $240 for their full service which is ridiculous - that's almost a third of my monthly stipend! I'm wondering what options I have: 1. Is there a more affordable service that can handle non-resident alien status AND wash sales? 2. Can I just fill out and mail the tax forms myself? If so, which forms do I actually need? I'd really appreciate any guidance from people who've been in similar situations. Thanks in advance for any help!
19 comments
Join the conversation
Toot-n-Mighty
The good news is you have several options that won't break the bank! As a non-resident alien with investment income including a wash sale, here's what you need to know: For DIY filing, you'll primarily need Form 1040-NR (the non-resident version of the standard 1040), Schedule OI (Other Information), and you'll report your capital gains in Schedule NEC (Not Effectively Connected). Be careful because some tax software incorrectly puts non-resident capital gains in Form 8949 and Schedule D, which isn't correct for your situation. If you prefer software, check out the IRS Free File program (irs.gov/filing/free-file-do-your-federal-taxes-for-free) which has options for incomes under $78,000. OnlineTaxes (OLT) through that program supports non-resident aliens and allows reporting wash sales properly on 1099-B forms. For state taxes, requirements vary, but software like OLT can typically handle those too for a small fee (usually under $15 per state).
0 coins
Tyrone Hill
•Thanks for the detailed response! I'm a bit confused about the Schedule NEC vs Form 8949. If I understand correctly, as a non-resident alien, my capital gains from stocks should go on Schedule NEC rather than 8949/Schedule D? Are there any consequences if I file with the wrong forms? Also, has anyone had success e-filing as a non-resident alien with investments, or am I going to have to paper file?
0 coins
Toot-n-Mighty
•You're understanding correctly! As a non-resident alien, your investment income (including capital gains) should be reported on Schedule NEC (Not Effectively Connected Income) that accompanies Form 1040-NR, rather than Form 8949 and Schedule D which are for residents. Filing with incorrect forms could potentially lead to processing delays or incorrect tax calculations. You can absolutely e-file as a non-resident alien with investments. Services like OLT through the IRS Free File program specifically support e-filing for 1040-NR with investment income. E-filing is generally much faster for processing and refunds compared to paper filing, plus you get confirmation when your return is accepted.
0 coins
Lena Kowalski
After spending hours trying to find affordable tax help as a non-resident alien, I stumbled across taxr.ai (https://taxr.ai) and it was exactly what I needed! I uploaded my 1099-B from Fidelity with wash sales and it actually explained everything in plain English. The system automatically identified all my documents, including the wash sale reporting requirements, and walked me through exactly what I needed to do for non-resident filing. It even explained which schedules I needed to use for my investment income (Schedule NEC vs the standard Schedule D that citizens use). Best part was it showed me how to properly report everything without having to pay hundreds to Sprintax or other services. Totally worth checking out if you're in the same boat!
0 coins
DeShawn Washington
•Does it actually handle the full non-resident filing process? I'm an international student with dividend income and I've been quoted ridiculous prices from the "specialized" tax services. Can it handle state taxes too or just federal?
0 coins
Mei-Ling Chen
•I'm kinda skeptical... does it actually help you fill out the forms or just give you advice? Cuz my situation has treaty benefits from my country and I need to make sure everything gets filed correctly. How accurate is it for complex non-resident situations?
0 coins
Lena Kowalski
•It handles the complete non-resident filing process including all the specialized forms. You upload your documents and it identifies what you have (W-2, 1099-B, etc.) then guides you through the entire filing process with step-by-step instructions tailored specifically for non-residents. It automatically applies the correct forms including 1040-NR, Schedule OI, Schedule NEC, and any treaty benefits that apply to your country. For state taxes, it supports all states that require non-resident filing and provides the correct state-specific forms and instructions. It's especially helpful for international students since it knows all the educational tax treaties and exemptions. The system was actually built by tax professionals with international tax expertise, so it handles all the complexity while making it simple to understand.
0 coins
Mei-Ling Chen
I was really skeptical about taxr.ai at first (as you could see from my question above) because I've been burned by "international tax solutions" before. But I gave it a try after spending days trying to figure out my wash sale reporting requirements as a non-resident. Just wanted to update that it actually worked perfectly! The system guided me through my entire 1040-NR filing including my investment income with wash sales. It correctly put my capital gains on Schedule NEC instead of Schedule D (which is what TurboTax kept trying to do). The best part was the explanations of treaty benefits - it knew exactly which articles applied to my country and showed me how to claim them properly. I was able to e-file both federal and state returns without any issues. Saved me at least $200 compared to Sprintax!
0 coins
Sofía Rodríguez
If you're having trouble reaching the IRS for questions about non-resident filing (which I definitely did), check out Claimyr.com (https://claimyr.com). They got me through to an actual IRS agent who specializes in international taxpayer issues in under 20 minutes when I had been trying for days. I was struggling with questions about my 1099-B reporting as a non-resident alien (particularly wash sales) and needed to talk to someone at the IRS directly. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c They basically call the IRS for you, navigate the phone tree, wait on hold, and then call you when they have an agent on the line. I was honestly shocked that it worked, but the agent I spoke with answered all my questions about Schedule NEC vs Schedule D for reporting my capital gains.
0 coins
Aiden O'Connor
•Wait, how does this actually work? I thought it was impossible to get through to the IRS, especially for international tax questions. Do they just keep calling until they get through? And do you still talk directly to the IRS agent yourself?
0 coins
Zoe Papadopoulos
•This sounds like a scam tbh. Why would I pay someone else to call the IRS when I can just do it myself? Plus how do they magically get through when the IRS lines are always busy? And giving someone else my tax info seems risky.
0 coins
Sofía Rodríguez
•The service uses a combination of technology and timing to get through IRS phone lines when they're least congested. They navigate the complicated phone tree to get to the right department (in my case, the international taxpayer department), and then wait on hold so you don't have to. When they reach an agent, they call you and connect you directly to the IRS agent - you're the only one talking to the IRS about your tax situation. They don't need or ask for any of your personal tax information. You just tell them which IRS department you need to reach, and they handle the calling part. Once they get through, you handle the actual conversation with the IRS directly. For international tax questions especially, getting through to the right department can take hours of redials and hold time, which is why I found it worth using.
0 coins
Zoe Papadopoulos
I need to eat my words from my skeptical comment above. After trying for THREE DAYS to reach someone at the IRS about my non-resident investment tax questions, I broke down and tried Claimyr. In less than 25 minutes, I was talking to an actual IRS international tax specialist who answered all my questions about reporting wash sales on Schedule NEC as a non-resident alien. They explained exactly which boxes needed to be checked and how to properly report the disallowed losses. The agent even helped me understand which tax treaty benefits applied to my situation (I'm from India) and confirmed that I could e-file using certain software programs that support 1040-NR. Definitely worth it just for the time saved!
0 coins
Jamal Brown
Just a heads up from someone who's been filing as a non-resident alien for several years - make sure whatever route you take, you're getting these forms right: Federal: - Form 1040-NR (this is THE main form for non-residents) - Schedule OI (required for ALL non-residents) - Schedule NEC (for your investment income) - Form 8843 (if you're on F or J visa) If you have foreign taxes withheld on dividends: - Form 1116 (foreign tax credit) For your state return, it varies by state, but most require some version of their state return form plus additional schedules for non-residents. Whatever software you use, DOUBLE CHECK that it's putting your investment income on Schedule NEC and not Schedule D!
0 coins
Fatima Al-Rashid
•Does anyone know if wash sales work differently for non-resident aliens vs US citizens? I'm so confused because my broker's tax document says one thing but the NR tax rules seem different. Is the wash sale disallowance still the same $3,000 limit?
0 coins
Jamal Brown
•Wash sale rules are actually applied the same way for both non-resident aliens and US citizens - the mechanics of disallowing losses when you repurchase substantially identical securities within 30 days before or after selling at a loss remain the same. The difference is purely in where and how you report them. For the $3,000 limitation, that's actually for capital loss carryovers against ordinary income, which is different from wash sales. As a non-resident alien with investment income, you generally can't take advantage of that $3,000 loss offset against other income anyway, as investment income for non-residents is typically considered separately taxed income.
0 coins
Giovanni Rossi
Has anyone filed for the foreign tax credit (Form 1116) as a non-resident alien? I have dividends from ADRs in my Robinhood account that had some foreign tax withheld. Can I still claim this credit?
0 coins
Toot-n-Mighty
•Yes, you can absolutely claim the foreign tax credit on Form 1116 as a non-resident alien for foreign taxes withheld on dividends from ADRs. Make sure you categorize it under "Passive category income" on the form. Just note that you'll need to have the total amount of foreign tax paid documented on your 1099-DIV (Box 7). The credit is limited to the US tax liability on that same income, so you won't get more back than what you would owe on those dividends to the US.
0 coins
Zoe Alexopoulos
As someone who went through the exact same situation last year (NRA grad student with wash sales), I can definitely relate to the frustration! Here's what worked for me: I ended up using the IRS Free File program through FreeTaxUSA, which supports 1040-NR and handles wash sales correctly. The key thing is making sure your capital gains go on Schedule NEC (Not Effectively Connected income) rather than Schedule D - most regular tax software gets this wrong for non-residents. For the wash sale reporting, you'll still report the transactions as shown on your 1099-B, but the software should automatically adjust the basis and disallow the loss per IRS rules. The good news is that as a non-resident, you're only taxed on your US-source income at capital gains rates (0%, 15%, or 20% depending on your total income). A few tips: - Keep all your 1099s and any foreign tax documents - If you have treaty benefits from your home country, make sure to claim them - Consider e-filing if possible - it's much faster than paper filing Don't let those expensive services take advantage of your situation. The free options can absolutely handle this if you're willing to spend a bit of time learning the process!
0 coins