This is such valuable information! I had no idea there were so many different target groups for WOTC. I run a small landscaping company and have been missing out on this credit completely. One thing I'm wondering about - for the rural renewal counties target group that was mentioned, how do I find out if my area qualifies? And does the employee have to live in the rural renewal county, or can they just work there? Also, I'm curious about the vocational rehabilitation referrals group. Do these employees have to come through a specific program, or is there a way to identify if someone I'm already considering for hire might qualify under this category? The 28-day deadline for Form 8850 seems really tight. Has anyone ever successfully appealed or gotten an extension if they missed it? I'm worried about hiring someone who qualifies but then losing the credit due to paperwork timing.

This thread has been incredibly helpful! I'm a new business owner who just hired my first employees last month without knowing about WOTC at all. After reading through all this information, I realize I may have missed out on some significant tax credits. I have a couple of follow-up questions: If I hired someone 3 weeks ago who I now realize might qualify (they mentioned being a veteran during casual conversation), is it too late to file the Form 8850? And if so, is there any way to still benefit from WOTC for future hires from the same employee if they continue working for me? Also, for those who have experience with this - do most employees readily provide the documentation needed, or do you find people are hesitant to share things like DD-214s or unemployment records? I want to approach this sensitively but also don't want to miss out on legitimate credits. Thanks to everyone who has shared their experiences here. This is exactly the kind of practical advice you can't find in the official IRS publications!

I'm dealing with a similar wash sale situation as a non-resident, and this thread has been incredibly helpful! One thing I wanted to add based on my experience is that you should double-check your 1099-B carefully because some brokerages don't always correctly identify ALL wash sales, especially if you have accounts at multiple brokerages. I discovered that I had wash sales that weren't marked on my 1099-B because I sold shares at one brokerage and bought similar shares at another brokerage within the 30-day window. The wash sale rule still applies in this situation, but the brokerages don't communicate with each other to identify these cross-brokerage wash sales. So even if your 1099-B shows some wash sales, make sure to review all your transactions across all accounts to catch any that might have been missed. You'll still need to report these on Form 8949 with code "W" even if they weren't identified by your brokerage.

As a non-resident who went through this exact same wash sale confusion last year, I want to emphasize something that really helped me understand the process: the key is that wash sale rules apply to ALL investors regardless of residency status, but the REPORTING mechanism is what's different for non-residents. Here's what I learned after finally getting it sorted out: 1. Yes, you absolutely must report wash sales as a non-resident 2. The Schedule NEC itself doesn't have wash sale columns because it's designed to receive already-processed totals from Form 8949 3. Form 8949 is where you do all the detailed wash sale reporting with code "W" 4. The adjusted totals from Form 8949 then flow to your Schedule NEC The biggest lightbulb moment for me was understanding that Form 8949 is essentially the "worksheet" where you handle all the complex capital gains/losses calculations (including wash sales), and Schedule NEC is more like the "summary" that takes the final numbers. Also, make sure you understand the basis adjustment aspect - when you mark a transaction as a wash sale on Form 8949, you're not just losing that loss forever. The disallowed loss gets added to the basis of your replacement shares, which will reduce your gain (or increase your loss) when you eventually sell those replacement shares. One last tip: if this is your first time dealing with wash sales as a non-resident, consider keeping extra detailed records. The IRS systems don't always track basis adjustments perfectly across different tax years or residency status changes.

I'm currently going through this exact same situation and it's so frustrating! Filed in early April, been stuck with a 570 code for about 3 weeks now with that same unhelpful "additional account action pending" message. No letters, no communication, just silence from the IRS. Reading through all these experiences is actually really comforting though - seems like most people are getting their 846 codes after 6-8 weeks of waiting, even without having to provide any additional documentation. I've been obsessively checking my transcript daily but I think I need to follow the advice here and limit it to weekly checks to preserve my sanity. It's reassuring to know that the 570 code doesn't necessarily mean there's a problem with my return, just that they're backed up and taking their time to review things. Thanks everyone for sharing your timelines - it helps to know this nightmare eventually ends!

I'm in the exact same situation! Filed early April and got hit with the 570 code about 3 weeks ago. That "additional account action pending" message is so vague and unhelpful - it tells you absolutely nothing about what they're actually doing or how long it might take. I've been checking my transcript obsessively every few days hoping to see it change to 846. Reading through all these responses is actually really reassuring though. It seems like most people are seeing their 570 codes resolve after 6-8 weeks without having to do anything on their end. The lack of communication from the IRS is incredibly frustrating when you're depending on that money, but at least now I know this is a common issue this year and not something specific to my return. Going to try to limit myself to checking the transcript just once a week to preserve what's left of my sanity! Thanks for posting this - it's comforting to know we're all in the same boat.

Has anyone actually calculated whether Roth or Traditional is better for a 1099 contractor? I'm in a similar situation but I'm not convinced Roth is automatically better just because I'm over the deduction limit for traditional contributions. Couldn't I still make non-deductible traditional contributions and benefit from tax-free growth, then strategically convert portions during lower-income years? I'm wondering if the math works out better that way vs paying full taxes now on Roth contributions.

Great thread! I wanted to add that I recently went through this exact same process. After reading through all the helpful suggestions here, I ended up calling Schwab directly using the retirement specialist department approach mentioned earlier. What I learned is that even though Schwab can technically handle Roth SEP contributions now, they require you to specifically request it during account setup - it's not offered as a default option. The rep I spoke with said many customers don't realize this and end up with traditional SEP IRAs when they actually wanted Roth contributions. One thing to keep in mind is that unlike regular Roth IRAs, there are no income limits for Roth SEP contributions. So even high earners can take advantage of this option, which makes it particularly valuable for successful 1099 contractors. I'd definitely recommend calling the retirement specialist departments at the major brokerages rather than going through general customer service. They seem much more knowledgeable about these newer options and can walk you through the specific forms needed.

This has been such an incredibly thorough discussion of a really complex topic! As someone who's been lurking and reading through all these responses, I wanted to add my perspective as a newcomer to understanding these tax rules. What really strikes me is how the original question seemed so straightforward - "Can you have two primary residences?" - but the reality is so much more nuanced. The disconnect between mortgage qualification rules and IRS tax rules is honestly pretty shocking. It seems like there should be better coordination or at least clearer disclosure in the mortgage industry about these tax implications. The documentation requirements everyone has discussed are particularly eye-opening. I had no idea the IRS looks at such a comprehensive picture - voting registration, banking relationships, where your kids go to school, medical care providers, etc. It's clearly not just about where you sleep most nights. For someone in my position who's trying to understand these rules for the first time, the key lessons seem to be: 1) Never assume what works for mortgage purposes will work for taxes, 2) The IRS really does look at your entire life circumstances, not just time spent, 3) Professional advice upfront is much cheaper than fixing mistakes later, and 4) Sometimes the simplest solution is actually the smartest when you factor in all the hidden complexities. The real-world examples of audit battles and unexpected tax bills shared throughout this thread really drive home why getting this right from the beginning is so important. Thank you to everyone who shared their expertise - this discussion has been incredibly educational!

This entire discussion has been absolutely invaluable for understanding the nuanced differences between mortgage qualification and tax law! As a newcomer to this community, I'm genuinely impressed by the depth of expertise and real-world experience everyone has shared. What really stands out to me is how the IRS's "facts and circumstances" test goes so far beyond simple time allocation. The focus on where your family lives, children attend school, and established community ties makes it clear that splitting work time doesn't automatically create dual primary residences for tax purposes. The recurring theme about documentation is particularly important - it seems like even well-intentioned taxpayers can get into trouble if they don't maintain meticulous records of their living arrangements, especially when significant money is involved through capital gains exclusions. For anyone else reading this who might be considering similar arrangements, the consensus seems clear: get comprehensive professional tax advice BEFORE making any property purchase decisions, understand that mortgage rules ≠ tax rules, and carefully consider whether the complexity and costs of multiple properties are worth the potential benefits. Thanks to everyone who shared their professional insights and personal experiences here. This thread demonstrates the real value of community knowledge-sharing on complex financial topics!