Tax attorney with 3 years experience here, and I wanted to offer a fresh perspective as someone who's relatively new to the field but made the switch for similar reasons to what you're considering. I transitioned from insurance defense litigation to tax law 2 years ago specifically because I wanted more predictable hours with a 1-year-old at home. The transition has been largely positive, but there were some surprises I wish I'd known about beforehand. The good: Tax work really is more plannable than litigation. I can schedule family events in summer with confidence they won't get canceled. During busy season I work about 55-60 hours, but the rest of the year is a manageable 42-45 hours. I'm home for dinner most nights and actually present on weekends outside of January-April. The reality check: The learning curve was steeper than I expected, even coming from another legal specialty. Tax law has its own language and logic that takes time to master. I felt like a first-year associate again for several months, which was humbling but ultimately worth it. Currently making $115k at a regional firm in a smaller market, which is about 15% less than I was making in litigation but the quality of life improvement has been dramatic. I actually use my vacation days now and haven't had to cancel a family weekend in over a year. My advice: If you do make the switch, be prepared for the intellectual adjustment period and maybe take a tax course before transitioning. But if family time is your priority and you can handle the seasonal intensity, it's been a great decision for me.

Current IRS tax attorney here with 8 years experience, and I wanted to offer the government perspective since several people mentioned it but didn't go into much detail. I made the switch from private practice (Big 4 accounting firm) to the IRS Office of Chief Counsel 5 years ago, and it's been exactly what you're looking for in terms of work-life balance. I work a true 40-hour week year-round - no busy season overtime, no weekend work, no late nights unless there's a genuine emergency (which happens maybe twice a year). The salary is lower than private practice - I'm at $125k after 8 years total experience, which would probably be $160-180k in private practice. But when you factor in the federal benefits (excellent health insurance, pension, 4+ weeks vacation that you actually use, 13 sick days annually), the total compensation package is competitive. More importantly for your situation with two kids: I've never missed a school event, I coach little league, and I genuinely disconnect when I leave the office at 5:30 PM. The work is intellectually challenging - tax litigation, regulatory guidance, and advisory work - but the culture truly respects work-life boundaries. The hiring process can be slow and bureaucratic, but if you're serious about prioritizing family time over maximum salary, government tax work might be exactly what you're looking for. Happy to answer specific questions about the application process or day-to-day work if you're interested in this path.

This is really helpful information everyone! I'm dealing with a similar situation but also have sales through Amazon's European marketplaces (UK, Germany, France). Should I be converting all of these different currencies to USD using the same methodology? And does anyone know if there are any special considerations for VAT that gets collected by Amazon on European sales - do I need to account for that differently on my Schedule C since it's not really "my" income?

Great question about the European marketplaces! I've been selling on Amazon EU for about 18 months now and can share what I've learned. You're absolutely right that VAT collected by Amazon shouldn't be included in your gross receipts - that money never actually comes to you since Amazon remits it directly to the respective EU tax authorities. For currency conversion, yes, stick with the same methodology across all currencies. I use the yearly average exchange rate method for consistency, but you could also do transaction-by-transaction if you prefer more precision (though that's a lot more work). The key is being consistent across USD, CAD, EUR, GBP, etc. One thing to watch out for with European sales is that Amazon's settlement reports can be confusing because they show gross sales, then subtract VAT, fees, and other deductions. Make sure you're only reporting the net amount that actually hit your bank account as your gross receipts on Schedule C. I keep a spreadsheet tracking the conversion rates I use for each currency so I have documentation ready if needed. Also remember that if you're selling in multiple EU countries, each one may have slightly different VAT rates, but Amazon handles all that complexity - you just need to report your net proceeds in USD.

Has anyone actually called the IRS helpline about this? I had almost the exact same situation and they were surprisingly helpful in explaining the process.

I went through this exact same situation last year and ended up working with a tax professional who specializes in HSA issues. One thing that helped me was understanding that the IRS Publication 969 actually has specific examples for excess contribution corrections when there are losses instead of gains. The key point everyone seems to be missing is that you need to be very careful about the timing. If you're already past the tax filing deadline (including extensions), you're stuck paying the 6% excise tax regardless of whether you withdraw the excess. But if you're still within the deadline, the withdrawal approach is definitely the way to go. Also, make sure when you request the excess contribution removal that you specify the exact tax year the excess occurred in. I made the mistake of not being clear about this initially and my HSA provider processed it as a regular distribution, which created even more paperwork headaches. The proportional loss calculation really isn't as complicated as it seems if you have all your statements. Most HSA providers can actually do this calculation for you if you ask the right person - I had to escalate past the first-level customer service to get to someone who understood the process.

This is such a comprehensive discussion and exactly what I needed to see! I'm a UK resident dealing with the same 1099 vs 1042-S issue with E*TRADE right now. Reading through everyone's experiences, it's clear this is unfortunately a widespread problem across multiple brokerages, not just Robinhood. The common thread seems to be expired W-8BEN forms that most of us had no idea needed renewing every 3 years. I particularly appreciate the insider perspective from Jace about how these systems work internally - it explains why having a US mailing address can trigger the wrong classification even when you've properly filed your W-8BEN. For anyone else dealing with this: I just called E*TRADE's international department after reading this thread and they confirmed my W-8BEN expired last year. They're processing a new one and promised to issue corrected 1042-S forms within 10 business days. The key was definitely asking for their specialized international team rather than general customer service. One additional tip I'd add - if you're in the UK like me, remember that the UK-US tax treaty reduces dividend withholding to 15% instead of the standard 30%, so double-check that rate on your corrected 1042-S as well. Thanks to everyone who shared their experiences - this thread should be bookmarked by anyone investing in US markets as a non-resident!

As someone who works in tax compliance, I want to emphasize a crucial point that hasn't been fully addressed here - timing matters significantly for this issue. While everyone is focused on getting the correct 1042-S form (which is absolutely the right approach), don't forget about the reporting deadlines on both ends. If you're a non-US resident who received an incorrect 1099, you may still have filing obligations in your home country that need to be met by specific deadlines. Many countries require you to report foreign investment income by certain dates regardless of whether you have the correct US tax forms yet. My recommendation: while you're waiting for Robinhood to issue the corrected 1042-S, gather all your investment statements and transaction records. Calculate your actual dividend income, capital gains, and any US tax that was withheld. You can often file your home country tax return with this information and then amend it later once you receive the proper 1042-S. Also, keep in mind that the incorrect 1099 isn't just a paperwork error - the IRS has a copy of that form too. Make sure when Robinhood issues your corrected 1042-S, they also send a correction to the IRS to avoid any future matching issues. You don't want the IRS thinking you're a US person who failed to report income. This whole situation is exactly why I always recommend non-residents set up a simple tracking system for their US investments rather than relying solely on broker-issued forms.

Just want to point out that the IRS is actually super backlogged right now. My friend had a similar excess contribution issue from 2022 and didn't get an IRS notice about additional penalties until January 2025 - almost 3 years later! So just because you haven't received a notice doesn't mean you're in the clear. The interest keeps accumulating the whole time, even if they're slow sending the notice. Better to be proactive like you're doing!

I went through something very similar last year and can offer some perspective on the timeline and what to expect. First, yes, you likely do owe additional penalties beyond the $390 excise tax. The failure-to-file penalty for Form 5329 is typically 5% of the unpaid tax per month (up to 25%), and failure-to-pay is 0.5% per month (up to 25%), plus interest compounding daily. For your situation, filing almost 2 years late, you're probably looking at the maximum penalties plus accumulated interest. In my case, a similar delay resulted in about $180 in additional penalties and interest on top of the base excise tax. Regarding the IRS notice - don't count on getting one anytime soon. The IRS is massively backlogged, and many people are waiting 2-3 years for notices on issues like this. The interest keeps accumulating whether they send you a notice or not. My recommendation: Call the IRS directly (or use a service to get through faster) to get the exact amount you owe. Once you have that number, pay it immediately to stop further interest accumulation. You can also explore the reasonable cause exception if this was truly an honest mistake - the IRS sometimes waives additional penalties for first-time errors when you demonstrate good faith efforts to correct the situation. The key is being proactive rather than waiting for them to contact you, which may never happen or could take years.