Let me clarify a few things about audits and refunds that might help you understand what's happening: 1. First, the IRS cannot take your 2024 refund until the audit is complete and they've determined you actually owe money. 2. Once the audit is complete, they'll send you a Notice of Deficiency (CP3219A or 90-day letter). 3. You'll have 90 days to either pay the amount, appeal through Tax Court, or request an audit reconsideration. 4. Only after this process is complete and if you have a confirmed debt will they potentially offset your refund. 5. Even then, you can request a payment plan that might prevent them from taking your entire refund. This step-by-step process takes time, so your 2024 refund is likely safe for now unless you already have confirmed debts from previous years.

I'm going through something similar right now and this thread has been incredibly helpful! Just wanted to add that if you're a gig worker like Uber/DoorDash, make sure you have ALL your documentation organized before they ask for it. I learned the hard way that they want detailed mileage logs, not just estimates. Also, don't panic about the audit itself - mine has been going on for 3 months and my 2024 refund came through just fine last month. The IRS agent I spoke with explained that audits and current year refunds are handled by completely different departments, so one doesn't automatically affect the other. One tip that helped me: I created a simple spreadsheet with dates, starting/ending locations, miles driven, and purpose for each trip. It made responding to their requests much easier than digging through months of scattered receipts.

Don't forget about state taxes too! Some states are really aggressive about keeping you as a tax resident even after you move abroad. Which state are you currently in? Some states like California and New York will try to claim you still have domicile there unless you take specific steps to establish that you've permanently moved.

Welcome to the expat tax world! I've been living in the UAE for 3 years now and went through the exact same confusion when I first moved. The advice here is spot-on - you'll definitely need to file US returns annually regardless of your dual citizenship status. One additional thing to consider: since you're moving to a zero-tax jurisdiction like Saudi Arabia, you won't have any foreign taxes to credit against your US liability. This makes the Foreign Earned Income Exclusion even more valuable for you compared to expats in high-tax countries who might benefit more from the Foreign Tax Credit. Also, start thinking about your banking situation now. Many US banks will close accounts for expats due to compliance issues, so you might want to research expat-friendly banks or credit unions before you move. And definitely keep a US address (family/friend) for banking and IRS correspondence - a lot of financial institutions require it. The learning curve is steep but manageable once you get the hang of the annual filing requirements. Good luck with the move!

Quick question - does the effective tax rate calculation include state taxes too? My marginal federal rate is 22% but my state adds another 6%. Should I be looking at combined effective rate or keep them separate?

Great question! I think you're getting hung up on the mechanics when the real value of effective tax rate is in decision-making. Your calculation is absolutely correct - you'll owe about $3,424.50 in federal taxes. But here's why effective rate matters: it tells you that you're only paying 7.9% of your total income in taxes, not the 12% that your tax bracket suggests. This distinction becomes crucial when you're making financial decisions. For instance, if someone offers you a $2,000 bonus, you might think "oh no, that's taxed at 12%" and worry about owing $240. But in reality, that bonus only increases your effective rate slightly (from 7.9% to about 8.2%), and your overall tax burden remains much lower than that 12% bracket would suggest. Understanding your effective rate helps you see the bigger picture of your tax situation and avoid the common mistake of thinking all your income gets taxed at your highest bracket rate.

3 I've been betting on sports apps for years and honestly never filed in other states. Just reported everything on my home state return. No issues so far, but sounds like I might be doing it wrong?

This is a really complex area that trips up a lot of people! Based on what I've seen, you're right to be concerned about proper reporting. Generally, you do need to file non-resident returns in states where you were physically present when placing winning bets, regardless of whether it was through an app or at a physical location. The key factor is your physical location when the bet was placed, not where the sportsbook is licensed. However, there are some practical considerations that might help: 1. Many states have minimum filing thresholds for non-residents (often $1,000-$2,500) 2. You'll get credit on your PA return for taxes paid to other states to avoid double taxation 3. Some of your out-of-state winnings might fall below reporting thresholds For your $8,500 in winnings, I'd recommend getting the location data from each sportsbook (most can provide this if requested) and checking each state's non-resident filing requirements. You might find that you only need to file in 1-2 states rather than all of them. The "state sourcing" question in your tax software is asking exactly this - where the income was earned geographically. Don't guess on this one since the penalties for incorrect state filing can add up quickly.

anybody else notice the irs website be down like every weekend tho

I've been dealing with this same message for about 10 days now and honestly it's driving me crazy! 😅 The waiting is the worst part because you have no idea if it's going to be resolved in a few more days or if you're about to get hit with some random notice asking for more documentation. What I've learned from lurking in tax forums is that this message can mean anything from "we're just slow" to "something doesn't match up and we need to verify." The frustrating part is there's literally no way to know which one it is until either your refund shows up or you get mail from them. Has anyone here actually called the IRS phone line while having this status? I'm debating whether it's worth the 2+ hour hold time just to potentially be told "wait for a notice" 🤷‍♀️