Just want to point out that even if you miss the deadline, it's not the end of the world. I completely missed my CP566 response deadline by about 3 weeks because the notice got lost in the mail and I only found out when I called to check on my application status. I still sent in the requested documents with a letter explaining why I was late, and my ITIN was approved without any issues. It just delayed the whole process by a few weeks. The IRS isn't as rigid as people think, especially for ITIN applications where they understand many applicants have international complications.

I'm dealing with a similar situation right now with my ITIN application. Got my CP566 notice last week and I'm supposed to be out of the country for work until mid-January. Reading through all these responses has been incredibly helpful - I had no idea there were so many options available. I think I'm going to try calling the IRS directly first using that number Connor mentioned (1-800-908-9982) to see if they can note my account about the travel. If that doesn't work, the Claimyr service sounds promising based on the experiences shared here, especially since Natasha had success with it after being initially skeptical. One question for those who've been through this - when you called the IRS to explain international travel, did you need to provide any proof of your travel plans (like flight confirmations) or did they just take your word for it? I want to be prepared with whatever documentation they might need when I call. Thanks everyone for sharing your experiences. This community has been a lifesaver for navigating these confusing IRS processes!

I went through this exact confusion last year! You're right to be puzzled because the relationship between AGI and AMTI isn't straightforward. Here's what I learned: Even if your AGI is higher than your AMTI, you can still owe AMT. The key comparison is between your "tentative minimum tax" (calculated from your AMTI) and your regular tax liability - whichever is higher is what you pay. Think of it this way: AGI and AMTI are just different starting points for calculating taxes under two parallel systems. Your AMTI might be lower than your AGI because certain deductions that reduce your AGI aren't allowed when calculating AMTI, but you're adding back other preference items. With your income level, I'd definitely recommend completing Form 6251 or having your tax software do it automatically. The AMT exemption does phase out at higher incomes, so it's worth checking. Don't rely on the AGI vs AMTI comparison alone - that's not the determining factor for AMT liability. Hope this helps clarify things! The AMT system is genuinely confusing even for experienced filers.

Great question! This is one of the most common AMT misconceptions. The relationship between AGI and AMTI actually doesn't determine whether you're subject to AMT at all. Here's the key: AMT works by running two completely separate tax calculations - your regular tax and your "tentative minimum tax." You pay whichever amount is higher. So even if your AGI exceeds your AMTI, you could still owe AMT if your tentative minimum tax (calculated from your AMTI) is higher than your regular tax liability. Your AMTI starts with your taxable income, then adds back certain "preference items" like state/local tax deductions, some depreciation methods, and bargain elements from stock options. These adjustments can create situations where your AMTI is lower than your AGI but still generates a higher tax liability under the AMT system. With your income level and the complexity you're describing, I'd strongly recommend actually completing Form 6251 (or having your tax software do it). The form will show you exactly whether you owe AMT by comparing your tentative minimum tax to your regular tax. Don't try to shortcut it by comparing AGI to AMTI - that comparison doesn't tell you what you need to know about your actual AMT liability.

Umm sorry if this is a dumb question, but I'm in the same situation and wondering how box 5 on the 1098-T (scholarships/grants) affects all this? I had a scholarship for part of my undergrad semester and it's showing in box 5. Do I need to subtract that from my qualified expenses before calculating AOTC?

Just wanted to add some clarity since I see some confusion in the comments. As a tax professional, I can confirm that you absolutely cannot claim both AOTC and LLC in the same tax year for the same student - this is a hard IRS rule. However, there's an important nuance about your situation: since your undergraduate expenses occurred in the first part of 2024 and your graduate expenses in the second part, you need to be strategic about which credit to use. If you've only used AOTC for 3 years so far, you have one year of eligibility left, but it can ONLY be applied to undergraduate expenses. Your graduate school expenses would not qualify for AOTC at all - they could only qualify for LLC. So your real choice is: use your final year of AOTC on just your $7,200 undergrad expenses, or use LLC on the combined $25,700 total expenses. Run the numbers both ways - AOTC might give you up to $2,500 (and up to $1,000 is refundable), while LLC gives you 20% of qualified expenses up to $2,000 total. Given your amounts, AOTC on just the undergrad expenses would likely be more beneficial than LLC on everything.

Has anyone here successfully gotten their employer to start offering a SEP IRA after bringing up these requirements? I'm in a similar situation (5 years at a company where the owner definitely has a SEP) but I'm nervous about how to approach the conversation. Any advice on how to bring it up without seeming confrontational?

Something to keep in mind is that even if your employer sets up SEP IRAs for eligible employees, they're not required to contribute every year - they just have to contribute the same percentage when they do contribute. So if your boss contributes to their SEP IRA one year, they must contribute the same percentage to all eligible employees that same year. But if they skip a year, nobody gets contributions. Also, the contribution limits for SEP IRAs are quite generous - up to 25% of compensation or about $70,000 for 2025, whichever is less. This makes them attractive for small business owners, but it also means the potential cost of covering all eligible employees can add up quickly. One more thing - make sure you understand the vesting rules. With SEP IRAs, contributions are immediately 100% vested, meaning any money your employer contributes belongs to you right away, even if you leave the company the next day.

Thank you all for the helpful responses! I think I understand better now. The combination of starting a campus job plus how the scholarship was categorized seems to be the main issue. I'll go back and check my 1042-S forms from both years to see if there are any differences in how things were reported. I'm definitely going to try both the document analysis and getting someone from the IRS on the phone. My scholarship is really important for me to continue my studies, so I need to understand exactly how it's being taxed so I can budget properly. This has been really eye-opening about how complex international student taxation can be! I'll update once I figure everything out.

I'm glad you're getting some clarity on this! One thing I'd recommend is also checking with your university's international student office - they often have tax specialists who understand exactly how your school reports scholarships on the 1042-S forms. In my experience, universities sometimes change their reporting procedures between years, which can dramatically affect your tax calculations even when nothing else changes. They might have switched how they categorize your housing scholarship or changed which box they use on the 1042-S form. Also, when you're comparing your forms, pay special attention to: - Box 1 (Income Code) - this determines how the IRS treats your scholarship - Box 2 (Gross Income) vs Box 4 (Tax Withheld) - Any treaty exemption codes Your international student office can also help you understand if you should be filing Form 1040NR-EZ vs 1040NR, which can make a difference in your refund calculation. Good luck sorting this out!