wait how did u even see the verification notice? my transcripts just show N/A everywhere

This is so frustrating! I'm dealing with the exact same thing. Filed early this year and boom - verification needed again. Last year I had to wait 3 months just to get my refund after jumping through all their hoops. The worst part is they never tell you WHY you're being flagged. Like give us some transparency here! 😩

22 My college sends an email every year reminding student tutors that we're independent contractors. So annoying they don't just hire us as employees! Does anyone know if there's a way to avoid that 15.3% self-employment tax? That's a huge chunk of my small tutoring income 😩

Just want to add that even though $550 seems small, you'll likely still owe some self-employment tax on it. The good news is that if your net earnings from self-employment are less than $400, you don't have to pay self-employment tax at all. So definitely track every expense you can think of - textbooks you bought for reference, gas to drive to tutoring sessions, even a portion of your phone bill if you use it to coordinate with students. Those deductions could potentially bring your net profit below the $400 threshold and save you from owing the 15.3% self-employment tax entirely! Also, make sure to save about 25-30% of your tutoring income for taxes if you haven't already. Even as a student, you might owe both income tax and self-employment tax on this money.

Question for anyone who knows - do I still have to deal with this mark-to-market stuff for section 1256 contracts if I only trade them in my IRA? Or is this just an issue for taxable accounts?

I went through almost the exact same situation last year with my SPX options! The mark-to-market rules for section 1256 contracts are so confusing when you're first learning about them. Here's what I ended up doing: I filed the 1040-X amendment for 2022 to properly report those unrealized losses. It was definitely worth it - even though it took about 6 months to process, I got back around $3,200 that I had overpaid. The key thing to remember is that you can't just roll those unreported losses forward to 2023 - they have to be claimed in the tax year they actually occurred. One tip: make sure you have good records of your year-end positions and their fair market values on December 31st, 2022. The IRS will want to see how you calculated the mark-to-market adjustment. I had to reconstruct some of this from my broker statements, which was a pain. The 60/40 treatment actually works in your favor most of the time since 60% gets treated as long-term capital gains/losses regardless of how long you actually held the contracts. Don't beat yourself up too much - this catches a lot of options traders off guard the first time!

One important thing nobody mentioned: Even with an ITIN, as a non-resident alien, you should look into filing a 1040-NR (Non-Resident) tax return for any US-source income, including that property sale. Just having an ITIN doesn't fix everything - you still need to file the right forms. Also, if the money you're transferring from your home country was already taxed there, make sure you keep documentation proving the source. Large transfers get reported by banks via FinCEN, but that doesn't automatically make them taxable.

As someone who went through a similar situation as a non-resident, I'd strongly recommend getting that ITIN before you receive the $31,500 payment. The application process can take 6-11 weeks, so don't wait. A few key points from my experience: **On the $31,500 payment:** Yes, your US bank will likely report this to the IRS, especially if it's from a US source or if it triggers any reporting thresholds. Having an ITIN ensures proper tax identification when this gets reported. **On property sale timing:** Don't rush to sell before marriage just for tax purposes. The FIRPTA withholding (15% of gross sales price) applies regardless of when you sell. However, being married to a US citizen might give you more options for how you file and potentially better treatment of capital gains. **On international transfers:** There's no limit that makes transfers "income" - it depends on the source. Money you've already earned and paid taxes on in your home country isn't US taxable income just because you move it to a US account. Just keep good documentation showing the source of funds. **Practical tip:** Consider consulting with a tax professional who specializes in international taxation before making any major moves. The interplay between non-resident status, property ownership, and potential future residency can be complex. Get that ITIN application started now - you'll need it for the property sale anyway, and it's better to have it ready than to be scrambling later.

Random question - does anyone know if tax software like TaxAct or TurboTax Business handles this K-1 preparation stuff properly? Or do most people use accountants for LLC partnership returns?

Thanks everyone for the detailed explanations! This has been incredibly helpful. I was definitely overthinking the 1099 situation. Just to make sure I understand correctly - we need to file Form 1065 (partnership return) and issue K-1s to each partner, but no 1099s for distributions. And if we have any guaranteed payments for services, those go on the K-1 as well, not on 1099-NEC forms. One follow-up question - do we need to send the K-1s to partners by the same March 15th deadline as filing the partnership return, or do partners get more time? I want to make sure everyone gets their tax info in time for their personal returns.