Some practical advice from someone who went through this: document EVERYTHING. Make a spreadsheet showing all expenses for the kids with dates and amounts. Gather bank statements, cancelled checks, receipts for big purchases, school records showing your address, medical records, etc. Even if you decide not to file an amended return, having this documentation ready will help if the IRS contacts you. And FYI - there's a 3-year statute of limitations for amending returns, so you do have some time to decide.

This is a really tough situation, and I can understand wanting to claim what you're legally entitled to while also not wanting to create unnecessary problems. One thing that might help is getting a consultation with a tax professional who can review your specific situation and documentation before you make any moves. From what you've described, if you truly were head of household, provided more than half the support, and the children lived with you for more than half the year, you likely have a valid claim. The key is having solid documentation to back this up - receipts for housing costs, utilities, groceries, medical expenses, school supplies, etc. Regarding penalties for your ex, the IRS typically distinguishes between honest mistakes and intentional fraud. If she genuinely believed she was entitled to claim the children, the consequences would likely be limited to paying back the tax benefits plus interest and possibly a 20% accuracy penalty. However, if the IRS determines it was willful fraud, penalties can be much steeper. Before filing an amended return, you might consider one more conversation with her, perhaps suggesting you both consult tax professionals to understand who actually qualifies. Sometimes having a neutral third party explain the rules can help avoid the dispute altogether. The $4,800 difference is significant, but so is maintaining a workable co-parenting relationship if possible.

The name change issue is definitely a major red flag here! I went through something similar after getting married - filed with my new name but SSA hadn't fully updated their records yet, which caused a 3+ month delay. The IRS basically puts your return on hold until they can verify your identity matches what's in the Social Security database. Here's what I'd recommend doing ASAP: 1) Call SSA at 1-800-772-1213 to verify your name change is properly recorded 2) Check both your return transcript AND account transcript - sometimes one updates before the other 3) Look for any mail from the IRS (sometimes verification letters get lost or look like junk mail) The "response date" is just their internal deadline but honestly means nothing - they're so backlogged they rarely meet their own deadlines anyway. A blank transcript after 6+ weeks with a recent name change almost always means identity verification issues. The good news is once they sort out the name mismatch, everything usually processes really quickly. I got my refund 4 days after they finally resolved my case. It's incredibly frustrating but hang in there - you're not alone in this mess!

I'm dealing with the exact same frustrating situation! Filed on March 8th, accepted immediately, but my transcript has been completely blank for over 7 weeks now. The "Where's My Refund" tool just keeps showing that generic "still being processed" message with no actual timeline or explanation. From everything I've researched (and I've been obsessively googling this), the "response date" is basically just an internal IRS deadline that they set for themselves - but honestly, they're so backlogged this year that those dates don't mean much. A blank transcript after this long usually indicates either your return is stuck in their massive processing queue OR something flagged it for additional review. The name change after marriage that you mentioned is probably the main culprit here! I've seen this issue come up repeatedly in forums - even after updating your name with Social Security, there can be significant delays before their database properly syncs with the IRS system. This mismatch can hold up processing for months while they try to verify your identity. I'd definitely recommend calling SSA tomorrow to confirm your name change is fully processed and showing up correctly in their records. Also make sure you're checking both your return transcript AND your account transcript - sometimes updates appear in one before the other. The waiting is absolutely brutal when you're depending on that refund money for unexpected expenses. But based on what others have shared, once the name issue gets resolved, refunds typically process very quickly. Stay strong - we'll get through this mess eventually! 🤞

Does anyone know if FreeTaxUSA handles backdoor Roth conversions better than TurboTax? I'm about to do my first conversion and trying to decide which software to use.

Just wanted to add my experience for anyone else dealing with this confusion. I did my first backdoor Roth conversion last year and had the exact same panic when I saw the blank line 8 on Form 8606! What helped me understand it was realizing that the IRS views this as a "nondeductible contribution followed by a distribution" rather than a direct "conversion." So the form is structured to track your basis (the after-tax money you put in) and separate it from any earnings. In your case, you contributed $17,300 of after-tax money, it earned $7.25, and then you distributed $17,300 of it to convert to Roth. The $7.25 that's still sitting in your traditional IRA will be fully taxable if/when you convert it later since it's all earnings. One thing to keep in mind for future years - if you plan to do backdoor Roth conversions regularly, try to convert quickly after making the contribution to minimize any earnings that build up. Makes the tax reporting much cleaner!

I think everyone's missing an important point here - you should check with your HR department about why this change happened! I had something similar occur and it turned out my employer had been putting money in the wrong account all year. I had to get that fixed before I could file correctly.

This thread has been incredibly helpful! I'm dealing with a similar situation where my W-2C changed a Box 12 code from D to W, but I also noticed the amounts don't quite match what I thought I was contributing throughout the year. Based on what everyone's shared here, it sounds like I should definitely contact HR first to understand exactly what happened with my contributions before filing. The last thing I want is to file correctly according to the W-2C but then discover there's still an underlying issue with where my money actually went. Has anyone else had experience where the W-2C was correct for tax filing purposes but there were still account corrections needed on the employer's end? I'm worried I might have money sitting in the wrong account type even though the tax reporting is now fixed.

Don't forget about FATCA and FBAR requirements! When you have financial accounts outside the US exceeding certain thresholds, you need to report them. FBAR (FinCEN Form 114) is required if your foreign accounts exceed $10,000 at any point during the year, and FATCA forms are required at various thresholds depending on your filing status. The penalties for not filing these forms are CRAZY high even if you don't owe any tax. Like, $10,000+ for non-willful violations. Make sure you're tracking all your NZ bank accounts, including any business accounts for that B&B venture.

Just wanted to add another perspective on the business structure aspect. Since your wife would be the owner of the B&B as a NZ citizen, you'll also need to consider whether this creates any issues with US gift tax rules if you're contributing funds to a business you don't legally own. Also, regarding the rental property in the US - even if you're breaking even cashflow-wise, don't forget that you'll be taking depreciation deductions which will reduce your basis. When you eventually sell, you'll have depreciation recapture to deal with, which is taxed as ordinary income up to 25%. This could create a significant tax bill down the road that many people don't anticipate. One more thing to research: NZ has something called the "bright-line test" for property investments, which could affect the tax treatment of your B&B if you sell within a certain timeframe. Since you're planning to reinvest profits initially, this might not be immediate concern, but it's worth understanding for long-term planning. The international tax situation is definitely complex, but with proper planning and the right resources, it's totally manageable. Good luck with the move!