For tax purposes, "living abroad" typically means you qualify as a bona fide resident of a foreign country or meet the physical presence test (330 days outside the US in a 12-month period). It's not just about where you happen to be on a particular day. The key is that you need to have filed for an extension to file your tax return OR qualify for the foreign earned income exclusion to use the higher thresholds. Just being physically outside the US temporarily doesn't automatically qualify you for the higher Form 8938 thresholds. If you're unsure about your status, it's worth checking IRS Publication 54 (Tax Guide for U.S. Citizens and Resident Aliens Abroad) or consulting with a tax professional who specializes in expat tax issues.

Great question and thanks to everyone for the detailed responses! I went through a similar situation last year and want to add a few points that might help: 1. Make sure you're counting ALL specified foreign financial assets, not just bank accounts. This includes foreign stocks, bonds, mutual funds, and even interests in foreign partnerships or trusts. 2. The valuation date matters a lot. You need to track the maximum value during the year AND the end-of-year value. I recommend keeping quarterly statements or screenshots of account balances throughout the year. 3. Currency conversion can be tricky - you must use the Treasury's published exchange rates for the specific dates, not just any random exchange rate you find online. One thing I learned the hard way: even if you don't meet the Form 8938 threshold, you might still need to file other forms like 3520 or 5471 depending on what types of foreign assets you have. The reporting requirements can overlap but they're all separate obligations. Also, penalties for not filing Form 8938 when required are steep - $10,000 initially, then $10,000 for each 30-day period of continued non-filing up to $60,000. Definitely better to file when in doubt!

Has anyone here used TurboTax or H&R Block software for this? Do they handle Worksheet B automatically or do you still have to figure it out manually?

I went through this exact same confusion last year! The reason Worksheet B seems so disconnected is because it's essentially a separate calculation module that determines if your Child Tax Credit gets reduced due to income limitations. Think of it this way: the IRS first calculates your "base" Child Tax Credit amount, then Worksheet B determines if that amount needs to be reduced because your income is too high. All those calculations in lines 1-14 are working through the income phase-out formula - they're checking if you're above certain income thresholds and calculating how much your credit should be reduced. Line 15 is the only number that matters because it's your final credit amount AFTER all those income limitations are applied. The other numbers are just the "work" that gets you to that final answer. It's like showing your math on a test - the teacher needs to see how you got there, but only the final answer counts. The IRS makes you show all this work so they can verify your calculations if needed, but for your actual tax return, you only need that final limited amount from Line 15. Hope this helps clear up the confusion!

Has anyone ever had any luck contacting their state's DMV to expedite a driver's license for tax purposes? My brother was in a similar situation last year but in California, and they actually were able to help him get a temporary digital ID that worked with ID.me when he explained it was for tax filing purposes.

I went through almost the exact same situation two years ago! The ID.me verification process is absolutely terrible, especially when you're dealing with DMV delays. Here's what ultimately worked for me: If you filed electronically last year and can remember ANY details about your return (like your refund amount or if you owed money), try calling your tax software company directly. I called TurboTax's customer service line and they were able to help me recover my account using my SSN and some basic info about my previous return. They have better recovery options than just the standard "forgot password" flow on their website. Also, if you have any bank statements from around the time you received your tax refund last year, that can help you narrow down which email account you used for filing. Most people use the same email that's linked to their bank account. One more tip - if you're really stuck and need to file today, you can always file a paper return instead. Paper returns don't require the prior year AGI verification, though they take much longer to process. But at least you'd be filing on time and avoid penalties. The whole system is frustrating beyond belief, but don't give up! There are usually more options than it initially seems.

Okay I'm still confused. What if you have a single-member LLC, not an S-Corp? Is it still the same where ordinary business income is what flows to your personal taxes? I've been filing Schedule C with my personal return and now I'm wondering if I've been doing it right. I usually just tell people the "net profit" from my Schedule C when they ask how much my business makes.

This is such a helpful thread! I've been dealing with the same confusion on my 1120-S. Just to add to what others have said - when you're talking to potential investors, I'd recommend being prepared to discuss both numbers along with context. In my experience, sophisticated investors want to see the full picture: your total income shows your business's revenue-generating capacity, while ordinary business income shows your operational efficiency after expenses. I usually lead with something like "We generated $X in total revenue and had $Y in ordinary business income after all operating expenses." Also, don't forget that investors will likely want to see multiple years of data to assess trends. One thing that helped me was creating a simple one-page summary that shows both figures for the past 2-3 years, along with key ratios like gross margin. It makes the conversation much smoother than trying to explain tax form line items on the spot. Good luck with your investor meeting next month!

I went through this exact process in March. The 811 code appeared three days before my scheduled verification appointment, but I still attended as required. Interestingly, the verification specialist mentioned that approximately 40% of taxpayers who receive the 811 code prior to their appointment still have secondary issues identified during the in-person verification. For documentation, I brought a comprehensive package including: - Two forms of government ID - Social Security card - All income documents (W-2s, 1099s) - Bank statements showing income deposits - Prior year tax return - Current year return copy - Utility bills proving address The entire appointment took only 22 minutes, and my DDD appeared exactly 8 days later. The refund was deposited on day 10 after verification. Would you consider this timeline satisfactory for your financial planning? Or does your situation require more immediate resolution?

This is such a helpful thread! I'm dealing with a similar situation but with a twist - I filed on March 1st, got the 810 code within days, and received my verification letter just yesterday. However, when I tried to schedule my appointment online, the earliest available slot isn't until June 15th! Has anyone else experienced such long wait times for verification appointments? I'm worried that even if my 810 code changes to 811 like yours did, I'll still be stuck waiting months for the appointment. My transcript shows the same "as of" date changes you mentioned, but no 811 code yet. For those who've been through this process - do the IRS offices sometimes have cancellations that open up earlier slots? I'm self-employed doing freelance graphic design and really counting on this refund to upgrade my equipment before summer wedding season hits. Any tips for getting an earlier appointment would be amazing! Also, @Natalie Chen, could you share what type of verification letter you received? I got a 5071C and want to make sure I'm preparing the right documents just in case an earlier slot opens up.