I work at a tax prep office and we see these 826 codes fairly regularly. One thing nobody's mentioned yet - check if you have any past due state income taxes. The Treasury Offset Program doesn't just collect federal tax debts, they also collect state tax debts, which would still show up as code 826. Also, the 10-year statute of limitations on tax debt collection is about to expire for 2013 tax returns, which might explain why they're suddenly collecting now. The IRS often gets more aggressive about collection when the statute is about to run out.

I went through almost the exact same thing last year! The 826 code with that specific format (201312) definitely indicates a federal tax debt from December 2013. What helped me was requesting my Account Transcript for tax year 2013 directly from the IRS website - it'll show you exactly what happened that year. In my case, there was an automated adjustment made to my 2013 return that I never knew about because the notice went to an old address. The IRS had corrected something on my original return (I think it was related to education credits) and I apparently owed additional tax plus penalties and interest that had been growing for 10+ years. The good news is that if this is truly the first time you're hearing about this debt, you may have grounds to request penalty abatement for "reasonable cause" since you were never properly notified. I was able to get about 40% of my offset refunded by filing Form 843 and explaining the situation. Definitely get that 2013 Account Transcript first though - it'll give you the full picture of what triggered this debt originally.

Make sure to take a photo of both checks before you deposit them! If there's ever any question about whether you received/deposited them, having that documentation could save you a headache. I always take pics of all tax-related documents just in case.

This is actually pretty common! I work in tax preparation and see this frequently. Those $1 checks are usually interest payments on delayed refunds from previous years. The IRS is required by law to pay interest when they take longer than their standard processing time to issue refunds. What likely happened is your 2023 refund was processed later than the IRS's target timeframe, so they owe you interest on that delay. The interest rate is pretty low (currently around 7-8% annually), so even a delay of a few weeks on a decent-sized refund only generates a small interest payment. Definitely deposit both checks! Even though it's just $1, leaving government checks uncashed can sometimes cause minor issues in their accounting system. Plus, it's your money - might as well take it. The checks are completely legitimate and safe to deposit. You might continue getting these small interest payments if you have refunds in future years that get delayed for any reason. It's just the IRS following federal law about paying interest on late refunds.

Has anyone here dealt with the certification required for treaty benefits on 1040NR? I'm trying to claim benefits under Article 20 of my country's treaty, but I'm confused about Form 8833. Is it always required or only in certain cases?

I went through a similar situation last year as a non-resident on an F1 visa. The key thing that helped me was understanding that 1040NR deductions are much more limited than regular 1040 deductions. For your specific situation: - Your $1,800 in charitable contributions to US charities should be deductible on Schedule A - Student loan interest is generally NOT deductible for non-residents (this is a common misconception) - Moving expenses are no longer deductible for most people after 2017 tax changes Since you're on J1 as a teacher, definitely check if there's a tax treaty between the US and your home country. Many treaties have special provisions for teachers and researchers that could provide additional benefits or exemptions. One thing to watch out for - make sure you're actually filing as a non-resident. The substantial presence test can be tricky, especially if you've been in the US before or plan to stay longer. If you haven't been here long enough to become a resident for tax purposes, then 1040NR is correct. Consider getting help from someone who specializes in non-resident returns, especially for your first year. The rules are complex and different from regular US tax filing.

For those of you trying to figure out if you're over the Roth IRA contribution limits, remember that the MAGI calculation is different from your AGI! I messed this up too. For Roth IRA purposes, your MAGI is your AGI with certain deductions added back in, like student loan interest, tuition deductions, and some others. That's probably why the OP didn't realize they were over the limit until after reviewing their tax forms. Anyone recommend a good tax software that automatically flags potential Roth IRA contribution issues based on calculated MAGI? My current one didn't catch this.

Your tax preparer is absolutely wrong about this being "immaterial." The IRS doesn't have a materiality threshold for excess Roth IRA contributions - $780 is definitely something you need to address. Here's what you need to know about timing: 1. You have until your tax filing deadline (including extensions) to remove the excess contribution plus any earnings. For 2024 contributions, that's typically October 15, 2025 if you file an extension. 2. If you remove the excess before this deadline, you'll avoid the 6% excise tax that applies each year the excess remains in your account. 3. However, any earnings on the excess contribution must be reported as income on your 2024 tax return (the year you made the contribution), not your 2025 return. I'd strongly recommend contacting your brokerage immediately to initiate an excess contribution removal. They'll calculate the earnings portion using an IRS-approved formula based on your account's performance. You'll then need to either amend your 2024 return if already filed, or include those earnings when you file. Don't let this sit - that 6% penalty compounds annually until resolved, and it's much easier to fix now than later.

If your keeping the loan under 10k, make sure neither of you already gave each other gifts that year that would push you over the annual exclusion when combined with the "imputed interest" amount. The IRS looks at the total benefit transferred in a year, not just individual transactions.

Great question! I went through something similar when my sister needed help with a down payment. Here's what I learned from my tax advisor: The key is proper documentation - even for family loans. Create a simple promissory note that includes: - Loan amount ($13,500) - Payment schedule (monthly payments over 3 years) - 0% interest rate explicitly stated - Both signatures and date Since your loan is over $10k, your friend technically should report imputed interest income based on the current Applicable Federal Rate (AFR). However, if you're using the money for personal expenses (not investments), the imputed interest amount is usually pretty minimal. One alternative that worked for us: we structured it as two separate $6,750 loans with slightly different start dates to keep each under the $10k threshold. This completely avoided any imputed interest issues while still giving us the full amount we needed. Whatever you decide, keep records of every payment made. The IRS wants to see it's truly functioning as a loan, not a disguised gift.