I know this is a bit off-topic, but make sure you're also checking if you need to file an FBAR (FinCEN Form 114) if your US financial accounts exceeded $10,000 at any point during the year. That requirement is separate from income tax filing and applies to many non-residents with US accounts regardless of whether you owe any tax.

I went through this exact situation two years ago and can confirm what others have said about the 183-day rule. Since you had zero days of US presence, your capital gains from stock sales are not subject to US taxation as a non-resident alien. However, I'd strongly recommend keeping detailed records of your physical presence (or lack thereof) in the US. I maintained a simple spreadsheet with dates, locations, and even flight records showing I never entered the US that tax year. This documentation proved invaluable when I later had questions about my filing position. One thing to consider: if you had any taxes withheld at source on dividends or other income during the year, filing a 1040NR might actually get you a refund. But for pure capital gains with no US presence, you're correct that filing isn't required. Just make sure you understand the distinction between different types of income from your brokerage account.

just wanted to add that if ur SSN was used for work, u could end up owing taxes on income u never earned!! happened to my cousin and the IRS came after HIM for the taxes owed! took almost a year to sort out and he had to get a tax attorney. social security admin and irs actually dont talk to each other much so u need to address this with both agencies separately.

This is such a scary situation, but you're smart to catch it now! I went through something similar when I found mystery earnings on my SSA statement from when I was deployed overseas. One thing I learned is that you should also request your IRS tax transcripts for all the years showing suspicious activity. You can get them free at irs.gov or by calling 1-800-908-9946. The transcripts will show you exactly what (if anything) was filed under your SSN for tax purposes, which is different from what shows up on your Social Security statement. Also, don't wait to file your legitimate tax return for that year if you were required to file. The IRS actually prefers when the real taxpayer files because it helps them identify the fraud. If someone else already filed using your info, your return will be rejected electronically, but that's actually good - it triggers the identity theft investigation process. Make sure to keep detailed records of everything - all your travel documents showing you were abroad, any communication with agencies, police reports, etc. This paper trail becomes really important if the situation gets complicated. The whole process is frustrating but totally manageable if you stay organized and persistent!

I'm really sorry this happened to you - losing $5K on what you thought was a safe long-term investment is incredibly frustrating. As others have confirmed, unfortunately you can't deduct annuity surrender losses under current tax law due to the Tax Cuts and Jobs Act suspending miscellaneous itemized deductions through 2025. What might help is thinking of this as valuable (albeit expensive) financial education. At 22, you trusted what seemed like professional advice, but now you have the knowledge to make much better investment decisions going forward. Many people don't learn about the high fees and surrender charges in these products until they're much older with even larger losses. For the $23K you received back, consider putting it into low-cost index funds in a taxable account or maxing out tax-advantaged accounts like your 401k or IRA if you haven't already. These will give you much better transparency, lower fees, and the ability to use any future losses for tax purposes. Also, definitely keep all your paperwork from this surrender - the original contract, payment records, and surrender statements. While the loss isn't deductible now, tax laws can change, and having complete documentation could be valuable if deductibility rules are restored after 2025. You're not alone in this situation - the annuity industry has unfortunately caught many young investors in similar fee traps. The important thing is learning from it and making better choices going forward.

I'm really sorry to hear about your $5K loss - that's such a frustrating situation, especially after being disciplined about contributing for so many years. Unfortunately, the other commenters are correct that you can't deduct annuity surrender losses under current tax law. The Tax Cuts and Jobs Act suspended the miscellaneous itemized deductions that would have previously allowed this type of loss (subject to the 2% AGI floor) through 2025. While this doesn't help with your immediate tax situation, I'd recommend using this experience as motivation to review your overall investment strategy. That $23K you received back could work much harder for you in low-cost index funds or by maxing out your 401(k)/IRA contributions. At least with traditional investments, any future losses could potentially be used for tax-loss harvesting. Also, definitely keep all your surrender paperwork - the contract, payment records, and surrender statement. Tax laws do change, and if miscellaneous itemized deductions are restored after 2025, having complete documentation could be valuable. I know it's little consolation right now, but learning about investment fees and surrender charges at your age, while painful, is actually better than many people who don't discover these costly structures until they're closer to retirement with much larger amounts at stake. Consider it expensive but valuable financial education that will serve you well going forward.

I wanted to add that getting an EIN is super easy these days. You can do it online at the IRS website and get your EIN immediately. It's free and takes maybe 15 minutes tops. Here's the link: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online Don't waste money on those "EIN services" that charge you for something you can do yourself for free. Just make sure you have your LLC formation docs handy because they'll ask for the formation date and state.

From personal experience, you absolutely want to set up proper business banking from day one. I made the mistake of using a personal account for my first few months of LLC operations and it became a nightmare during tax season - trying to separate business expenses from personal ones was incredibly time-consuming. Regarding the EIN vs SSN question: while you CAN use your SSN for a single-member LLC, I'd strongly recommend getting an EIN anyway. It's free, takes 15 minutes online, and makes everything smoother with banks. Plus, you'll need it eventually if you ever hire employees or change your tax election. Don't let the banking decision hold up getting paid! Most banks can set up a business account quickly once you have your LLC docs and EIN. Credit unions are often faster and cheaper than big banks for small business accounts. The key is keeping those business transactions completely separate from personal ones to maintain your liability protection.

I went through this exact same process about 6 months ago and totally understand the anxiety! The good news is that it's really not as scary as it seems at first. I called the number on my 5747C letter and yes, the wait time was brutal - about 2.5 hours on hold - but once I got through, the actual verification was pretty straightforward. The agent asked me to confirm basic info like my address, filing status, and some line items from my current and prior year returns. They also asked about my employer and a few specific deductions I claimed. The whole conversation took maybe 20 minutes once I was connected. My refund was issued exactly 6 weeks after the call, which was actually faster than they initially told me to expect. Just make sure you have your tax documents handy when you call - both this year's and last year's returns. The IRS agent was actually pretty helpful and explained that my return was flagged because I had moved states and changed jobs, which created an unusual pattern in their system. Don't stress too much about it - it's really just a verification process to make sure you are who you say you are!

I got a 5747C letter about three weeks ago and finally made it through the verification process yesterday. I wanted to share what worked for me since I know how stressful this can be! I tried calling multiple times but kept getting disconnected or couldn't get through at all. Finally decided to schedule an in-person appointment at my local Taxpayer Assistance Center, which was honestly the best decision. The appointment was scheduled for about 10 days out, but the actual process was so much smoother than trying to call. The IRS representative was really professional and walked me through everything step by step. She explained that my letter was triggered because I had claimed the Earned Income Tax Credit for the first time this year after getting a new job. Apparently that's a common trigger for their fraud detection system. I brought my driver's license, Social Security card, current year tax return, last year's return, and all my W-2s. The whole appointment took about 25 minutes, and she was able to verify my identity on the spot. She told me to expect my refund within 6-9 weeks, but honestly just having it resolved felt like a huge weight off my shoulders. If you're struggling with the phone lines, I'd really recommend trying the in-person route if you have a Taxpayer Assistance Center nearby. Much less frustrating than sitting on hold for hours!