Has anyone managed to get this right using the Free File Fillable Forms? I'm having the same negative AGI issue and I can't figure out which form is causing the problem. Is it Schedule 1 or Form 2555 that I need to fix?

I had this exact same issue last year! The negative AGI is definitely not normal and indicates an error in how you're entering the foreign earned income exclusion. What's happening is that Free Fillable Forms is applying the full $121,500 exclusion amount against your $95,000 income, creating a negative $26,500 AGI. You should only exclude what you actually earned abroad ($95,000 in your case). On Form 2555, make sure you're entering your actual foreign earned income amount, not the maximum allowable exclusion. The form will automatically limit it to the annual maximum, but it can't exclude more than you actually earned. Once you fix this on Form 2555, it should carry over correctly to Schedule 1 and your 1040, eliminating the negative AGI. This is a really common mistake with the FEIE - I think a lot of people assume you should always claim the maximum, but that's not how it works.

Something nobody's mentioned - if you're claiming a casualty loss deduction, make sure you adjust your home's tax basis afterward! The amount you deduct should reduce your home's basis, which could affect capital gains when you eventually sell. I learned this the hard way after Hurricane Harvey repairs.

Just a heads up - if you're going to claim this as a casualty loss, make sure you have really solid documentation of the "before" condition of your home. The IRS will want proof that the damage was specifically caused by Hurricane Francine and not pre-existing issues or normal wear and tear. I'd recommend taking detailed photos of all the damage before any repairs start (sounds like you might still have time since the adjuster is coming tomorrow). Also get a written report from the insurance adjuster even though they're not paying - that professional assessment could be crucial if the IRS questions your deduction later. One more thing - consider getting multiple contractor estimates, not just one. Having 2-3 estimates that are reasonably close to each other strengthens your case for the amount you're claiming. The IRS sometimes challenges casualty loss amounts if they think the repair costs seem inflated.

I completely understand your anxiety about this - the "jeopardy" language is definitely designed to get your attention! Here's what I'd recommend based on your situation: **Don't wait** - even though you're only waiting for one W2, that lien/levy notice means the IRS is ready to take action. A few key points: 1. **Call the IRS immediately** at the number on your notice. Explain you're waiting for a missing W2 and plan to file soon. They can often put a temporary hold (60-90 days) on collection actions. 2. **Request your wage transcript** from IRS.gov while you wait - this shows all reported W2 info and might have enough detail to file without the physical W2. 3. **Set up a minimal payment plan** if you can't reach them by phone. Even $25/month stops collection and shows good faith. Online setup is only $31 vs $107 by phone. The key thing is **communication** - the IRS doesn't know you plan to pay with your refund. From their perspective, you're just ignoring a debt. Once you make contact and explain your situation, they're usually reasonable about working with you. Don't risk a lien on your credit report over $650 - it's not worth the long-term damage for a relatively small amount. Take action today!

I had almost this exact same situation last year - owed about $700 and got that scary "jeopardy" notice while waiting for a delayed 1099 from a freelance gig. The language in those notices is definitely designed to get you moving fast! Here's what worked for me: I called the IRS number on the notice (took about 2 hours on hold, but I got through). The agent was actually really understanding when I explained I was just waiting for tax documents. She put a 90-day collection hold on my account, which gave me plenty of time to get everything sorted out. The key thing they told me is that once you receive that "lien/levy warning," you're basically at the final stage before they take action. They don't know you're planning to use your refund to pay it off - from their system, it just looks like you're ignoring the debt. Don't stress too much about the $650 amount, but definitely don't ignore the timeline. Even setting up a $25/month payment plan online would stop the collection process immediately if you can't get through by phone. You can always pay it off in full once you file and get your refund. The worst thing you can do is nothing - I've seen people end up with liens over tiny amounts just because they thought it wasn't worth dealing with. Take care of it this week!

Just chiming in to add my experience as someone who didn't file for 5 years (2016-2020) and finally caught up last year. The biggest surprise was that I was actually OWED money for 3 of those 5 years because I had too much withheld from my paychecks! Unfortunately I could only get refunds for 2020 since the others were outside the 3-year window, but I was relieved there were no penalties since I was due refunds. The peace of mind from being caught up is worth it even though I lost out on some refund money. Whether you should file really depends on if you had taxes withheld that were more than what you would have owed. If you were a W-2 employee with normal withholding, there's a decent chance you're owed money rather than owing the IRS.

Gabriel, I can definitely understand your stress about this! From what you've shared, you're actually in a pretty good position since you've gotten current with 2021-2023. Here's my take on your specific situation: Since you're primarily concerned about FAFSA eligibility for January, you should be fine. FAFSA typically uses the "prior-prior year" tax information, so for starting school in January 2025, they'll likely want your 2023 return (which you have filed). However, I'd still lean toward filing those back years (2017-2020) for a few reasons: 1. You mentioned wanting peace of mind - unfiled returns can create anxiety that lingers 2. If you were a W-2 employee during those years, there's a decent chance you're owed refunds (especially for 2020, which you might still be able to claim) 3. It eliminates any future complications if you need tax transcripts for loans, employment background checks, or other purposes Before spending money on a tax preparer though, I'd suggest trying to figure out if you were even required to file for those years. If your income was below the filing threshold for any of those years, you wouldn't need to file at all. You can check the IRS website for historical filing thresholds by year. The fact that your current tax preparer seemed confused suggests he might not specialize in back tax situations - you might want to consult with someone who has more experience with unfiled returns to get a clearer picture of your obligations and potential refunds.

I'm an accountant and see this ISO reporting issue constantly! One thing to watch out for - there's a difference between what goes on Form 3921 vs what gets reported on your taxes. Form 3921 reports the exercise of ISOs, but doesn't necessarily mean you owe taxes right away. You only trigger regular income tax if you sell the shares before meeting holding period requirements (disqualifying disposition). If you held the shares, you'll probably deal with AMT instead. Make sure your 1040-X amendment correctly reflects your actual situation - not just what's on the Form 3921.

I'm dealing with a similar Form 3921 discrepancy right now! One thing that helped me was requesting both the "Wage and Income Transcript" AND the "Account Transcript" from the IRS website. Sometimes corrections show up on one but not the other. Also, when you contact your former employer, try to get someone from their stock plan administration team rather than regular HR or payroll. They're usually more knowledgeable about ISO reporting requirements and can better explain any discrepancies. If you're still getting the runaround from your employer, you might want to ask them specifically if they filed any corrected forms with the IRS after your original Form 3921. Sometimes companies discover errors months later and file corrections without notifying employees. Document everything - save emails, notes from phone calls, etc. The IRS appreciates seeing that you made good faith efforts to resolve discrepancies when reviewing amended returns.