Has anyone dealt with this for state returns specifically? My federal return was accepted but my state (California) was rejected, and I owe on both. Should I still pay the state amount even though the return was rejected?

Just want to add some additional peace of mind for anyone in this situation - the IRS has actually improved their e-file rejection process over the past few years. Most rejections happen within 24-48 hours of submission, so you'll know pretty quickly if there's an issue. If your return does get rejected, don't forget to check your email AND your tax software account for the rejection notice. Sometimes people miss the notification and think their return is still processing when it was actually rejected days ago. Also, keep records of your payment confirmation numbers when you pay online, even if your return is rejected. This will help you track that the payment was made on time if you ever need to dispute penalties later. The IRS and state systems are pretty good about matching payments to returns once the corrected filing is accepted.

Just remember that if your parents are still providing more than half of your support (paying most of your living expenses, health insurance, etc.), they might still be eligible to claim you as a dependent even if you're working. Might want to talk to them before you file!

Great advice here! Just wanted to add one more thing - if you're still unsure about your situation, you can also use the IRS withholding calculator on their website (irs.gov/W4App). It's free and walks you through questions about your income, filing status, and whether you can be claimed as a dependent. It then tells you exactly how to fill out your W-4. At $42K annually and living independently for 2 years, you're almost certainly filing as independent. The key thing is making sure your withholding is close to what you'll actually owe - you don't want a huge refund (that's like giving the government a free loan) or a big tax bill in April. The standard W-4 setup for single filers usually gets you pretty close to the right amount.

This thread has been incredibly helpful! I'm in a similar situation planning to buy property in Portugal next year. One thing I haven't seen mentioned is the timing of when you need to file these forms. From what I've researched, the FBAR is due by April 15th (with an automatic extension to October 15th), but Form 8938 is filed with your regular tax return. Is there any benefit to timing the property purchase at a certain point in the tax year to make reporting easier? Also, does anyone know if there are different requirements if you're buying the property as a primary residence versus an investment property? I'm planning to eventually retire there but initially it would be a vacation home that I might rent out occasionally.

One thing that hasn't been covered yet is the potential impact of state taxes on overseas property transfers. I learned this the hard way when I bought a condo in Mexico last year - some states have additional reporting requirements or tax implications for foreign asset purchases that go beyond federal requirements. For example, California has pretty aggressive rules about worldwide income reporting, and New York requires disclosure of certain foreign transactions. I'd recommend checking with your state's tax authority in addition to handling the federal requirements everyone's mentioned (FBAR, Form 8938, etc.). Also, don't forget about the foreign exchange implications. If you're transferring a large sum and the exchange rate moves significantly between when you initiate the transfer and when it's completed, this could affect the reported values on your tax forms. I had to track the exact exchange rates on the dates of my transfers for accurate reporting.

I'm dealing with this exact same situation right now and found this thread incredibly helpful! My wife and I filed jointly in February, were supposed to get our refund in April, and it's now July with no money in sight. The IRS keeps saying it was "issued" but our bank has no record of any deposit attempt. I've been hesitant to file the Form 3911 because I wasn't sure about the process, but reading all these success stories has convinced me to move forward. The step-by-step advice about finding the correct service center address, using certified mail, and making sure both spouses sign has been invaluable. One question for those who've been through this - did anyone have to deal with interest or penalties during the refund trace period? I'm worried that while we're waiting for this to get resolved, we might get hit with late payment notices for estimated taxes or other issues. Our refund was supposed to cover our next quarterly payment, so the delay is really throwing off our financial planning. Thanks to everyone who shared their experiences and timelines. It's reassuring to know this process actually works, even though it's frustratingly slow!

I just successfully completed this process a few months ago and wanted to share a crucial detail that isn't mentioned much - make sure to check the "Form of Payment" section carefully on your Form 3911. Since you mentioned the IRS says your refund was "issued" but you never received it, you need to indicate whether you were expecting direct deposit or a paper check. If you originally chose direct deposit on your return but never received it, check the appropriate box AND include your current banking information in case there was an error with your account details. In my case, the IRS had somehow corrupted one digit of my routing number, so the direct deposit failed but their system still showed it as "issued." The Form 3911 allowed them to identify this error and reissue the refund to the correct account. Also, don't forget to include your daytime phone number in case they need to contact you for clarification. The IRS actually called me during the trace process to verify some details, which helped speed things up rather than having to send additional forms back and forth. The whole process took about 5 weeks from mailing to receiving my replacement refund. Certified mail is definitely the way to go - I paid about $6 for the peace of mind and tracking confirmation.

Has anyone tried going above HR directly to the payroll provider? I had a similar issue with my W-2 last year (wrong state tax withholding) and discovered my company uses ADP. I called ADP's customer service, explained the situation, and they were able to initiate the correction from their end much faster than going through my company's disorganized HR department.

Another option if you're really stuck is to check if your employer has an employee self-service portal or app where you can view your pay history and year-end tax documents. Sometimes these systems show the correct information even when the printed W-2 has errors. You can screenshot or print these pages as supporting documentation when you contact HR or the payroll company. Also, if your employer is part of a larger corporation, try reaching out to the corporate payroll department instead of just your local HR. They often have more resources and authority to expedite corrections. I've seen cases where local HR takes weeks but corporate payroll fixes it in days. One last thing - if you're union represented, your union rep might be able to help escalate this issue. Payroll errors affecting multiple employees often get faster attention when the union gets involved.