Important question: Are any of these foreign corps in countries without tax treaties with the US? That can affect reporting requirements and potential withholding.

Great question about minority foreign ownership! I went through a similar situation last year. Since you own less than 10% and aren't an officer/director, you're right that Form 5471 likely isn't required. The investment group composition (mix of US/non-US persons) shouldn't affect your individual filing requirements either. One thing to double-check though - make sure none of these foreign corporations qualify as Controlled Foreign Corporations (CFCs) where US persons collectively own more than 50%. Even as a minority owner, if you're part of a group that collectively controls the company, there could be additional reporting requirements. Also, definitely look into whether any of these companies might be PFICs as others mentioned. If they're investment holding companies rather than operating businesses, you might need Form 8621 regardless of your ownership percentage. For future income, dividends will go on Schedule B and you'll want to look into foreign tax credits if any foreign taxes are withheld. Keep good records of any foreign taxes paid - Form 1116 can help you avoid double taxation. Consider consulting a tax professional who specializes in international tax if the investments are substantial. The penalties for missing international forms can be really harsh!

Something nobody has mentioned yet - you should run the numbers BOTH ways before deciding to file MFS for student loan purposes. I did this last year and while my wife's student loan payments were lower with MFS, we ended up paying about $3,800 more in taxes compared to filing jointly. The tax hit came from: 1. Lower tax brackets for MFS filers 2. Loss of certain credits and deductions 3. Both having to itemize when only one of us had enough deductions to make it worthwhile Make sure the student loan payment reduction actually outweighs the increased tax burden!

One thing to double-check - make sure you're both actually liable on the mortgage debt, not just on the deed. The IRS requires that you be legally obligated to pay the debt to claim the interest deduction. If only your husband signed the promissory note, you might not be able to claim your portion even if you're on the deed and contributing to payments. You can check this by looking at your original loan documents. If both of your names are on the promissory note (not just the deed), then you're both legally liable and can split the deduction as others have described. If only one name is on the note, the situation gets more complex and you might need to consult a tax professional. Also, keep in mind that the $375k limit applies to acquisition debt - debt used to buy, build, or substantially improve your home. If you've done any cash-out refinancing, the rules for that portion might be different under the Tax Cuts and Jobs Act changes.

I went through the exact same confusion with my ISOs last year! The key thing that helped me understand it was realizing that the W-2 income and the 1099-B are reporting different parts of the same transaction. Your W-2 Box 14 shows the "bargain element" - the difference between what you paid to exercise and the fair market value when you exercised. This gets taxed as ordinary income. The 1099-B shows the total proceeds from your sale, but the cost basis might be wrong. You need to adjust it by adding the amount already reported on your W-2 to avoid double taxation. Here's what I did: I created a simple spreadsheet tracking each transaction with columns for exercise price, FMV at exercise, sale price, W-2 compensation amount, and adjusted basis. This helped me see exactly what was happening with each sale. When entering the 1099-B in my tax software, I looked for the section asking about employee stock options and made sure to indicate that part of the gain was already reported as compensation income. This prevented the double taxation issue. Keep all your Form 3921s organized by transaction - they're your backup documentation if the IRS ever questions your basis adjustments.

This is exactly the kind of ISO confusion that trips up so many people! I went through this same nightmare last year and can confirm you're NOT being double-taxed, but the reporting makes it look that way. Here's what's happening: When you do a disqualifying disposition (exercise and sell in the same year), the IRS treats it as two separate events: 1. The exercise creates ordinary income equal to the bargain element (FMV - exercise price) - this shows up on your W-2 2. The sale creates capital gain/loss from the FMV at exercise to your sale price - this shows up on your 1099-B The problem is your broker's 1099-B likely shows your original exercise price as the cost basis, not the adjusted basis that accounts for the income already taxed on your W-2. For your 13 Form 3921s, each one corresponds to a specific exercise transaction and contains the details you need to calculate the correct adjusted basis. When you enter each 1099-B in your tax software, make sure to adjust the cost basis by adding the compensation amount from your W-2 that relates to that specific transaction. Most tax software has a section specifically for employee stock options - look for questions about whether the stock came from an employee plan or if compensation was already reported elsewhere. This will help prevent the double taxation. Keep detailed records of everything - the IRS pays special attention to stock option transactions because they're commonly reported incorrectly!

One thing nobody's mentioned yet - is there any chance you paid for your Spring 2023 semester during 2022, even though you didn't attend? Sometimes schools bill for the next semester in December of the previous year. If you DID pay any qualified education expenses for undergraduate studies in 2022 (even if you didn't attend those classes), you might have a case for AOTC. The timing of PAYMENT is what matters for tax purposes, not when you attended classes. Worth checking your bank/credit card statements from late 2022 to see if you made any payments to your undergrad institution!

This is a really complex situation that highlights how tricky education credits can be! Based on what you've described, your uncle's tax advisor is likely correct. The key issue is that once you've completed your undergraduate degree (which you did in December 2022), the IRS generally considers your "first four years of higher education" to be complete, regardless of whether you actually took four full academic years to finish. The fact that your only 1098-T for 2022 has the graduate student box checked is a major red flag for AOTC eligibility. The IRS specifically excludes graduate-level coursework from AOTC, and medical school is definitely considered graduate education. However, don't despair! You should absolutely look into the Lifetime Learning Credit instead. While it's not as generous as AOTC (max $2,000 vs $2,500, and it's non-refundable), it's designed exactly for graduate students and continuing education. You can claim LLC for qualified tuition and fees paid for your medical school courses. The LLC is calculated as 20% of up to $10,000 in qualified education expenses, so if you paid $10,000+ in medical school tuition/fees in 2022, you could get the full $2,000 credit. Make sure to keep all your receipts and documentation for medical school expenses - books, lab fees, and required course materials may also qualify.

Quick tip - don't forget about state taxes too! Depending on Texas local tax laws, you might need to report this on your state return as well. Some states follow federal treatment of settlements while others have their own rules.

This is such a thorough discussion! I went through a similar situation with an employment discrimination settlement last year. One thing I'd add is to make sure you get a copy of the settlement agreement that clearly states the nature of the damages being awarded. In my case, the settlement agreement specifically mentioned "emotional distress and mental anguish" which made it much easier when I had to explain the tax treatment to my tax preparer. If your agreement isn't clear about this, you might want to get a clarifying letter from your attorney. Also, regarding the 1099-MISC timing - in my experience, some companies are slow to issue these for settlements. I had to follow up with my attorney in February because the company "forgot" to send mine. Don't assume they'll automatically handle it! The advice about including a written statement with your return is spot-on. I actually attached a brief explanation referencing the specific IRS code sections for emotional distress settlements (Section 104(a)(2)) and the attorney fee deduction (Section 62(a)(20)). Made me feel more confident that everything was properly documented.