I've been through this process multiple times for different overseas positions, and I can share some practical insights that might help clear up the confusion! For Line 7, the key is understanding what your employer actually needs the certificate for. Most international employers requesting tax residency certification want to verify your US tax resident status for treaty benefits or withholding purposes. In your case, starting in March 2025, you'll likely want certification for 2024 (the most recently completed tax year when you start) or 2025 (the year you'll actually be working). Since the fee is the same regardless of how many years you request, I'd strongly recommend requesting both 2024 and 2025 on the same form. This gives you maximum flexibility and ensures you have the right documentation regardless of what your employer specifically needs. One important thing to note: the IRS can certify future years (like 2025) based on your previous filing history, so don't worry about not having filed 2025 taxes yet. They'll use your 2023 and 2024 returns to verify your ongoing US tax resident status. Given the 6-8 week processing time and your March start date, I'd submit your Form 8802 ASAP. Consider faxing it instead of mailing for potentially faster processing, and make sure every field is completed accurately since errors cause significant delays.

Based on everyone's helpful advice here, I'd recommend taking a two-pronged approach to get this resolved quickly and correctly. First, definitely request both 2024 and 2025 on Line 7 of your Form 8802 since the fee is the same for multiple years. This covers you regardless of what your employer specifically needs, and given the March start date, you want maximum flexibility. Second, while you're waiting for the IRS processing (which could take 6-8 weeks), reach out to your employer's HR or international tax team to ask specifically which tax year they need and if they have any other documentation requirements. Sometimes they just need proof of US tax residency status and don't care about the specific year. For submitting the form, definitely fax it rather than mail it - several people mentioned this can save 1-2 weeks of processing time. Make sure you're using the current version from the IRS website and that every field is completed accurately since errors cause major delays. The good news is that requesting 2025 certification isn't a problem even though you haven't filed those taxes yet - the IRS will use your 2023 and 2024 filing history to verify your US tax resident status. Just make sure to include any required attachments like tax transcripts if you've had amended returns or special circumstances. Given your tight timeline, I'd get this submitted ASAP and consider the expedited processing option if your employer can provide documentation of the firm deadline. Good luck! 🤞

Has anyone mentioned the income phaseouts for child tax credits? This was a HUGE factor for us last year. If either of you is close to or over $200,000 in income (for single filers), the child tax credit starts phasing out. In our case, my partner makes about $210k and I make $155k. We found it was WAY better for me to claim both kids because I could get the full child tax credit while she was getting a reduced amount due to her income. Before you decide, calculate your modified adjusted gross income and check where you fall on the phaseout range. Could make a difference of thousands depending on your exact income levels.

Another important consideration that hasn't been mentioned yet is the Earned Income Tax Credit (EITC) if either of you qualifies. With two children, the EITC can be worth up to $6,728 for 2023, but it phases out at different income levels depending on filing status. For Head of Household filers with two children, the EITC phases out completely around $56,838 in earned income, while for single filers it's around $50,594. Given that you both earn in the six-figure range, you likely won't qualify, but it's worth double-checking since this credit can be substantial. Also, don't forget about the dependent care FSA (Flexible Spending Account) if either of your employers offers it. You can set aside up to $5,000 pre-tax for childcare expenses, which effectively reduces your taxable income. This works independently of who claims the children as dependents, so whoever has access to a dependent care FSA should definitely use it. Just remember you can't double-dip - if you use FSA funds for daycare, you can't also claim those same expenses for the Child and Dependent Care Credit. The FSA savings alone could be worth $1,000-2,000 depending on your tax bracket, so make sure to factor that into your planning for next year!

Based on my experience helping clients with similar estate tax issues, you're likely not personally liable as executor since you acted in good faith without knowledge of the unreported income. The key factors working in your favor are: 1) you never received the 1099-R, 2) the estate was properly closed through court supervision, and 3) you distributed assets before knowing about this liability. However, the IRS can still pursue beneficiaries under transferee liability rules. They would be responsible only up to the amount they received from the estate, not the full tax debt. I'd recommend responding to the IRS notice with a letter explaining the timeline - when assets were distributed versus when you learned of the unreported income. Include copies of the probate court closure documents and note that no 1099-R was ever received. This establishes your good faith compliance as executor. Also ask the probate attorney if there was any executor/fiduciary insurance in place. Some estate plans include coverage specifically for post-distribution tax liabilities discovered later. If the tax amount is relatively small, the IRS might also determine it's not cost-effective to pursue multiple beneficiaries and mark it as currently not collectible.

I went through a very similar situation with my father's estate about 18 months ago. The IRS came back with a notice about unreported Social Security benefits that we never knew existed - apparently there was a clerical error and the SSA never sent us the proper documentation. What really helped me was documenting everything chronologically. I created a timeline showing when I filed his final returns, when the probate court approved distributions, when assets were actually distributed to beneficiaries, and when I first received the IRS notice. This timeline clearly demonstrated that I had no knowledge of the unreported income when I closed the estate. I also reached out to the Social Security Administration to get a letter confirming that the required tax documents were never sent to the estate. Having that third-party documentation from SSA really strengthened my case when I responded to the IRS. The IRS ultimately agreed that I wasn't personally liable as executor, but they did send notices to the three beneficiaries who received the largest distributions. Two of them ended up paying their portion (about $800 each), and the third successfully argued hardship since they were on disability. The whole process took about 8 months to fully resolve. My advice would be to gather all your probate documents, create that chronological timeline, and try to get documentation from whoever should have sent the 1099-R that they failed to do so. Having that paper trail makes a huge difference in these cases.

This is such a helpful thread! I've been struggling with the same issue and it's great to see so many different explanations. Just wanted to add one more thing that caught me off guard - if you have any dependent care FSA contributions, those are also pre-tax for FICA purposes (up to $5,000/year). I was only contributing $100/month but it was enough to throw off my calculations slightly. It's one of those smaller deductions that's easy to overlook when you're trying to figure out why your percentages don't match the standard rates. Between health insurance, 401k, transit benefits, and dependent care FSA, it all adds up to explain the discrepancy!

This thread has been incredibly helpful! I'm dealing with a similar situation where my FICA percentages don't match the standard rates. Reading through everyone's explanations about pre-tax deductions really clarified things for me. I have a question though - does anyone know how flexible spending accounts (FSAs) for medical expenses work with FICA taxes? I contribute to one through my employer but I'm not sure if it's reducing my FICA taxable wages like the health insurance premiums do. My paystub shows both deductions but doesn't clearly indicate which ones affect the FICA calculation. Also, for those using spreadsheets to track this stuff, have you found a good way to automate the calculation of your actual FICA taxable wages? I'd love to set up formulas that account for all the different pre-tax deductions without having to manually update everything each pay period.

I had a very similar situation with a relocation bonus that I had to repay after leaving my job early. One thing I learned the hard way is to keep excellent records of everything - the original bonus amount, taxes withheld, the repayment amount, and the date you made the repayment. Also, double-check that your employer calculated the W-2C correctly. In my case, they initially forgot to adjust the Social Security and Medicare wages, which would have caused issues with my return. I had to go back to HR twice to get it fixed properly. The Section 1341 credit that others mentioned can be a real lifesaver financially. In my situation, I got back about $1,800 more using the credit method versus just taking the deduction. It's definitely worth taking the time to understand how it works or getting help with the calculation if you're not sure.

I'm dealing with a similar W-2C situation and this thread has been incredibly helpful! One thing I want to add based on my experience - timing really matters when you're dealing with the Section 1341 credit calculation. If you received the bonus in 2019 but are just now getting the W-2C (presumably for 2024 taxes), you'll need your 2019 tax return to calculate the credit properly. The IRS needs to know what your tax liability would have been in 2019 if you hadn't received that $7500 bonus in the first place. For anyone considering whether the credit or deduction is better - generally speaking, if you were in a higher tax bracket when you received the bonus than you are now when repaying it, the Section 1341 credit will almost always be more beneficial. This is especially true if the repayment amount is substantial (like $7500). Also, don't forget that if you itemized deductions in the year you're claiming the repayment, you might need to compare the credit method against adding the repayment to your Schedule A itemized deductions. Most tax software will help you with this comparison, but it's good to understand the options.