I am a non-resident alien having lived in the USA in 2015-2021. I just found out I'd received a class action settlement for almost $400 back in May 2022. (The funds were deposited into my PayPal account, but somehow I never got a notification.) In case it matters, the settlement is for Facebook biometric information privacy litigation.
After doing some research I found out that this income is taxable (as the settlement is not connected to a personal injury etc.) As a nonresident, I don't get the standard deduction, and do not qualify for any other deductions. All of this means I have to file a US tax return for 2022, owe a non-negligible amount, and am about 1.5 months late. My intent is to fill out the forms myself (there is no way I'm paying $50 for tax prep for this) and file them ASAP.
I'm particularly concerned with three questions:
How exactly do I report this? I did not receive any tax forms for this income. I've checked the various schedules attached to the form 1040-NR. There is no dedicated line for lawsuit settlements, so it seems to belong under "other income" either on Schedule 1 ("Additional Income and Adjustments to Income") or on Schedule NEC ("Tax on Income Not Effectively Connected With a U.S. Trade or Business").
What do I do with state taxes? I was a resident of Illinois back when I filed the claim form (and that was a condition of my eligibility for the settlement); but I haven't even been there since 2021, do not maintain a home there, etc. Do I still have to pay the state tax in Illinois or in some other state?
How do I deal with late filing/late payment penalties and interest? Is there a way to calculate the late penalty plus interest and just pay all of it right away, along with the tax? I do not have a US mailing address, so I'm going to list my foreign address on the forms. I am worried that the IRS will not be able to contact me; how would I calculate what I owe in this case?