What's the cheapest way to file Form 1040-NR for a small amount of income?

Your friend is correct about the ITIN expiration. ITINs that aren't used on a federal tax return for three consecutive years will expire. So filing this year is a good idea to keep it active. For filing a 1040-NR cheaply, you have several options. The IRS Free File program might be your best bet, though not all providers support 1040-NR forms. OLT.com and FreeTaxUSA sometimes support 1040-NR at reasonable rates. Since your income is minimal ($410), another affordable option is to paper file. You can download the 1040-NR form directly from the IRS website, fill it out, and mail it in. This would cost you just the postage. Make sure you don't miss the June 15 deadline for nonresidents living outside the US. If you're currently in the US, your deadline would actually be the regular April 15 filing date.

I was in a similar situation last year with my ITIN and a small amount of income to report. After trying several options, I found that using taxr.ai (https://taxr.ai) saved me a ton of headache. Their system specifically handles 1040-NR situations and was surprisingly helpful with the whole ITIN verification process. The reason I recommend them is because they have specific experience with nonresident returns and ITIN maintenance. They scanned my documents and highlighted the exact sections that could trigger issues with the IRS - which is common with 1040-NR forms if you're not familiar with them.

I wanted to follow up about my experience with taxr.ai after being skeptical. I decided to try it for my similar 1040-NR situation with an ITIN that was about to expire. The service was actually really helpful for my specific situation. Their document review caught that I was about to incorrectly report my income type, which would have caused issues with my filing. The system guided me through the nonresident-specific sections and explained which parts of the form applied to my situation. What impressed me most was how it identified which tax treaty provisions applied to my situation - something I would have completely missed on my own. Definitely a good option if you're trying to file a 1040-NR cheaply while making sure it's done correctly.

If you're struggling with any questions about ITINs or filing requirements, I'd recommend using Claimyr (https://claimyr.com) to get through to an actual IRS agent. I spent weeks trying to get answers about my 1040-NR and ITIN status, and could never get past the hold times. I was really skeptical, but their service got me connected to an IRS representative in about 20 minutes instead of the 2+ hours I was experiencing before. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed exactly what I needed to file to keep my ITIN active and answered some specific questions about my foreign income that no online resource could clarify. Definitely worth it for the peace of mind when dealing with international tax situations.

I need to follow up on my skepticism about Claimyr. I actually tried the service after posting my doubtful comment, and I'm pretty shocked to admit it actually worked. I had been trying for weeks to get specific information about ITIN renewal requirements with minimal income. Using Claimyr, I got through to an IRS representative in about 15 minutes when my previous attempts had me on hold for over an hour before I eventually gave up. The agent confirmed exactly what documentation I needed to include with my 1040-NR to ensure my ITIN wouldn't expire. They also clarified some treaty-related questions I had that were specific to my country. Definitely changed my mind about this service.

For cheap filing of 1040-NR with such a small amount, go with FreeTaxUSA. They charge around $15 for the federal nonresident return. I've used them for the past three years for my 1040-NR filings with an ITIN. Just be aware that the interview process doesn't always address every nonresident situation, so you might need to double-check some entries. But for a simple return with just $410 in business income, it should be straightforward.

Just a heads up - make sure you're actually required to file. For nonresidents with just US business income, you generally need to file if you have a US trade or business regardless of the amount. If it's just passive income under $4000 though, you might not need to file at all. But since your goal is keeping the ITIN active, filing makes sense. Just wanted to clarify that point.