Does Sprintax handle regular 1040 filing too? I'm actually a resident for tax purposes this year (passed the substantial presence test), so I need to file a regular 1040, not a 1040NR. That's why I was trying to use TurboTax.

Yes, Sprintax can handle your transition from nonresident to resident status. They have a feature specifically for people who were nonresidents in previous years but are now residents. It's called Sprintax Federal and can prepare regular 1040 returns. They're particularly good at dealing with the complications that come with that transition, like handling income from before and after your status change, properly reporting state tax refunds from nonresident years, and applying the correct treaty benefits if you're still eligible for any. Their system is designed to understand international tax situations even after you become a resident.

No, the standard deduction for nonresidents on 1040NR is not the same as itemized deductions. As a nonresident on F-1 last year, you were only eligible for a limited standard deduction (around $12,950 for 2023 if you were single). If you took the standard deduction (which most students do), then your state tax refund is NOT taxable this year. State refunds are only taxable if you itemized AND claimed state taxes as part of those itemizations in the previous year.

Oh that makes sense! I definitely took the standard deduction then because I remember the software recommending it since I didn't have enough deductions to itemize. So I can just put $0 for the taxable portion of my state refund?

That's a really good point I hadn't considered. So we need to be careful about both the 99-6 implications AND making sure we satisfy Section 351 for the C corp formation. Does the order of operations matter here? Should we structure the documents differently to better protect the Section 351 treatment?

The order of operations definitely matters for protecting your Section 351 treatment. I'd recommend structuring your documents to emphasize that the partnership interests are being contributed to the new C corp as part of the overall restructuring plan, not as separate transactions. You might want to consider having the agreements executed simultaneously rather than sequentially with a time gap. Even a few minutes between transactions creates risk. Another approach is to use binding agreements that explicitly reference each other and make clear that all steps are conditional on the completion of the entire plan. This strengthens your position that it's a single integrated transaction for tax purposes.

Good point! My LLC operating agreement specifically states that if only one member remains, the LLC continues without dissolution and automatically converts to a single-member LLC. Might be worth checking for similar language in the partnership agreement.

16 Do you know if H&R Block offers the same feature? That's what I've been using for years and would prefer to stick with it if possible.

21 Yes, H&R Block does offer 1099 filing capabilities in their small business versions. You'd need their Premium & Business or Business & Investment packages to access those features. However, if you're only filing one 1099, it might be more cost-effective to use one of the standalone services others have mentioned, since the upgrade cost for H&R Block might be higher than just paying for a single 1099 form processing. The benefit of using your existing tax software is everything stays in one system, which makes record-keeping easier for future years.

1 Thanks for this reminder! I completely forgot about that aspect. Would this go under "Contract labor" on the Schedule C, or should I list it somewhere else? I've never had this expense before.

Thank you so much! This is exactly what I needed to know. I'll go back and look for that option. Do you remember if it asks for any specific information about the foreign contractor?

It will ask for their name and I believe their country, but not much else. You won't need their tax ID number or anything like that. Just make sure you have good records of the payments in case of an audit - invoice, proof of payment, contract, etc. The key is documenting that the work was legitimate and for your business.

Actually, it depends on the tax treaty status with the specific country. Some countries require withholding regardless of where the work is performed. India (where OP's contractor is located) has specific provisions in its tax treaty with the US.

12 Do you know if the tax brackets for 2022 are different than they are now? I made around $58,000 that year but I'm not sure which bracket that falls into for back then.

4 Yes, the tax brackets change each year due to inflation adjustments. For 2022, the brackets were different than they are for 2025. For example, if you were filing as single with $58,000 in taxable income for 2022, you would have been in the 22% bracket, which for 2022 covered income from $41,776 to $89,075. Remember that tax brackets are marginal, meaning only the portion of your income that falls within each bracket gets taxed at that rate. This is why it's important to use the correct year's tax forms and software, as they will have the correct brackets and calculations built in.

8 You file state taxes based on where you lived during the tax year you're filing for. So for your 2022 return, you would file state taxes for the state you lived in during 2022, regardless of where you live now.