I had almost this exact situation last year. Make sure you're also checking if your cousin had other Schedule A deductions that might impact the recovery calculation! In my case, I focused so much on the SALT cap that I forgot to consider how my charitable contributions and medical expenses affected the overall calculation on Worksheet 2. This actually made a portion of my state refund taxable even though I thought the SALT cap would protect me.

You're absolutely right to be careful with this calculation! I went through a similar situation last year when I switched from MFJ to Single after my divorce. The key insight you've identified is correct - if the nondeductible portion of your SALT (the amount over $10k) exceeds your state tax refund, then none of the refund is taxable. This is because you didn't receive a tax benefit for that portion of your state taxes in the prior year. However, I'd recommend double-checking a few things: 1. Make sure you're only considering your cousin's portion of the joint SALT deduction, not the full amount from the MFJ return 2. Verify that all other itemized deductions from the prior year are properly accounted for in the worksheet calculations 3. Consider whether any of the state taxes that generated the refund were actually deductible under the prior year's circumstances The Publication 525 worksheets are designed exactly for these filing status change situations. If Worksheet 2a is indicating that none of the refund is taxable, that's likely correct. But given the complexity and potential for errors, you might want to have a tax professional review the calculation before filing, especially since the stakes are relatively high with a $3,600 refund.

I went through a similar denial situation last year and want to share what worked for me. The key thing I learned is that "documentation insufficient" often means they need proof of continuous occupancy, not just ownership. What ultimately got my appeal approved was creating a timeline document that showed my occupancy from day one. I included: utility connection dates (gas, electric, water, internet), my first grocery delivery receipt to the address, photos of me moving in with timestamps, and even my employer's records showing when I updated my address for payroll. The county assessor told me later that many people just submit a driver's license and deed, but they really want to see that you were actually living there as your primary residence during the required time period. They're looking for patterns of daily life, not just legal ownership. Also, don't be afraid to be persistent with the appeal process. My first appeal was also denied, but I submitted additional evidence and got approved on the second try. The $2,200 savings you mentioned is definitely worth the effort - that's real money that stays in your pocket every year going forward.

I'm going through a homestead exemption denial right now too, and reading everyone's experiences here has been incredibly eye-opening. I had no idea that "documentation insufficient" could mean so many different things - timing issues, occupancy proof problems, missing utility bills, etc. What's frustrating is that the county offices seem to give such vague denial reasons without explaining what specific documentation they actually need. It sounds like most of us are basically playing a guessing game trying to figure out what went wrong. Based on what I'm reading here, it seems like the key is to flood them with evidence of actual occupancy rather than just proving ownership. I'm going to try the timeline approach that Rachel Clark mentioned - gathering everything from utility connections to employer address changes to show I've been living here continuously. Has anyone had success with including a cover letter that directly addresses the "documentation insufficient" reason? I'm thinking of writing something that says "In response to your finding of insufficient documentation, I am providing the following additional evidence of primary residence and continuous occupancy..." and then listing everything methodically. The stakes are real - my potential tax savings would be about $1,800 annually, so this is definitely worth fighting for. Thanks everyone for sharing your experiences and advice!

Don't forget about state partnership returns too! When you amend your federal 1065, you usually need to amend your state returns as well. Each state has different procedures though.

Just wanted to share my experience as someone who went through this exact situation last year. The key thing that saved me a lot of headaches was keeping detailed records of what changed and why. When I filed my 1065-X, I created a separate document that mapped out every line item change with explanations, even though the form has limited space for explanations. Also, make sure you send the amendment via certified mail with return receipt requested - this gives you proof of filing date and delivery. The IRS can take several months to process partnership amendments, so having that paper trail is crucial if any questions come up later. One more tip: if the changes on your amended K-1s are significant, consider sending a brief letter to your partners explaining what changed and whether they need to amend their individual returns. It helps maintain good relationships and avoids confusion down the road.

I'm dealing with a very similar cross-border RSU situation after transferring from our Dublin office to San Francisco last year. The complexity of US-Ireland tax treaty provisions for RSUs has been a nightmare to navigate. One thing I learned that might help others in this thread - when you're calculating the allocation based on work performed during the vesting period, make sure you're using business days rather than calendar days. My tax attorney pointed out that weekends, holidays, and vacation days shouldn't count toward the allocation calculation since you weren't actually performing services on those days. Also, for anyone dealing with this issue, I found that creating a detailed timeline document was incredibly helpful. I mapped out my exact employment dates, transfer paperwork, visa approvals, and first/last days worked in each country. This timeline became the foundation for my Form 8833 filing and helped demonstrate to the IRS that my allocation method was based on concrete facts rather than estimates. The Ireland-US treaty (Article 15) works similarly to the Canada-US provisions mentioned here. After properly documenting everything and filing the treaty disclosure, I was able to avoid about $11,000 in double taxation that my original tax preparer had calculated. The peace of mind from getting it right was worth the extra effort to gather all the documentation.

I'm currently going through this exact same situation after transferring from our Toronto office to Boston last year. My RSUs vested in 2024, and I'm facing the same double taxation nightmare that everyone here is describing. Reading through all these experiences has been incredibly helpful - especially the emphasis on getting proper documentation from your employer and filing Form 8833. I had no idea about the business days vs calendar days distinction that @Freya Larsen mentioned, which could significantly impact my allocation calculation. One question I haven't seen addressed yet - has anyone dealt with RSUs that had different vesting schedules? I have some RSUs that vest quarterly and others that vest annually, all granted at different times while I was working in Canada. I'm wondering if I need to calculate the allocation separately for each grant based on when they were issued and their individual vesting periods, or if I can use an overall average allocation across all my RSU income. Also, for those who successfully resolved this with the IRS - approximately how long did it take to hear back after filing Form 8833? I'm worried about potential delays or additional scrutiny given the complexity of cross-border situations. Thanks to everyone who has shared their experiences here. It's given me much more confidence that this can be resolved properly with the right approach and documentation.

I'm dealing with the exact same situation! Filed on January 20th and still showing "being processed" after almost a month. What's really frustrating is that I have friends who filed later than me and already got their TAX refunds. One thing I learned from calling my tax preparer is that even though we think our returns are "simple," sometimes there are automatic reviews that we don't know about. For example, if your refund amount is significantly different from last year, or if there are any slight mismatches in the data the IRS has on file vs what you reported, it can trigger a review. The good news is that February is historically the worst month for processing times. Once we get into March, things typically speed up a lot. I'm trying to be patient but it's hard when you're counting on that money!

I'm in the exact same boat - filed on January 22nd and still stuck on "your return is still being processed" for over 3 weeks now. It's my first year filing taxes after graduating college, so I wasn't sure if this was normal or not. Reading through everyone's experiences here is actually really reassuring. I was starting to worry that maybe I made some mistake on my return, but it sounds like early filing season delays are pretty common. My return is super simple too - just one W-2 from my new job and standard deduction. I'm definitely going to wait another week or two before trying to call the IRS based on what others have shared about the phone wait times being brutal right now. Thanks everyone for sharing your experiences - it helps to know we're all in the same waiting boat!