Ugh I feel your pain! I had code 428 show up on my transcript about 3 weeks ago and was freaking out. Turns out it was just the IRS doing additional verification on my return - nothing scary, just their standard process for certain situations. Mine cleared up after about 2 weeks without me having to do anything. The waiting is the worst part honestly. I kept checking my transcript like every day lol. Have you gotten any letters or notices in the mail yet? That's usually the next step if they need something from you specifically.

Code 428 can definitely be nerve-wracking when you first see it! I went through this exact same situation about 6 months ago. In my case, it turned out the IRS was just doing a routine review because I had claimed some education credits and they wanted to make sure everything matched up with what my school reported. The good news is that most of the time these codes resolve themselves without you having to do anything major. I'd recommend checking your transcript every week or so to see if there are any updates, but try not to obsess over it (easier said than done, I know!). If you don't get any letters in the next 2-3 weeks, you might want to call the taxpayer advocate service - they're usually more helpful than the main IRS line and the wait times aren't as brutal. Hang in there, your refund will come through! 💪

One other major advantage of W-2 that no one mentioned: retirement plans! Yeah you can do a SEP IRA or Solo 401k as 1099, but most agencies offer 401k matching for W-2 employees. Free money! If your agency matches even 3%, that's an extra $1,860 on your $62k that completely offsets the slight tax advantage of 1099. Plus health insurance, PTO, etc makes W-2 the clear winner imho.

Great analysis on the W-2 vs 1099 comparison! One thing I'd add that might help with your decision - have you confirmed whether the staffing agency actually offers any benefits with the W-2 option? Many staffing agencies provide minimal or no benefits for contract W-2 positions, so you might not get health insurance, PTO, or retirement matching that people mentioned. If there are no additional benefits, your calculations become even more important. The W-2 option still wins financially due to the employer paying half your FICA taxes, but the gap narrows if you can't take advantage of employer-sponsored benefits. Also, consider asking the staffing agency if there's any flexibility on the 1099 rate. Many contractors successfully negotiate 20-25% higher rates to offset the tax disadvantage. At $75/hour as a 1099, your take-home might actually exceed the W-2 option, especially if you can identify legitimate business deductions. One last consideration: if this contract has potential to extend or lead to direct hire, W-2 status might look better for that transition since you'd already be in their payroll system.

Has anyone actually had their taxes rejected because of Form 8332 issues? Our decree says we alternate claiming our daughter each year, and we've been doing that for 2 years without any forms. I claim odd years, he claims even years. No issues so far, but now I'm nervous after reading this thread!

I went through this exact situation last year and wanted to share what I learned. The key thing to understand is that your divorce decree and IRS rules are completely separate systems that don't automatically talk to each other. Even though your decree says you each claim one child, the IRS has their own "tiebreaker" rules for determining the custodial parent when custody is truly 50/50. Since you mentioned equal physical custody, they'll look at who has higher adjusted gross income to determine who gets the right to claim the children. Here's what I'd recommend: First, carefully count the actual overnight stays for each child to make sure you really do have exactly 50/50 custody. Sometimes what we think is "equal" isn't when you count every single night. Second, if it truly is 50/50 and your ex has higher income, he technically has the right under IRS rules to claim both children unless he signs Form 8332 releasing his claim to one child. Your ex is wrong about not needing any forms - the IRS doesn't care what your divorce decree says if their rules determine a different custodial parent. Don't risk it. I'd suggest getting professional help to review your specific situation, because getting this wrong can result in rejected returns, penalties, and having to pay back tax credits with interest.

This is really helpful information! I had no idea about this extension. I'm definitely going to go back and review my 2019 return - I remember being super stressed that year with a job change and probably rushed through it. Quick question though - when you file an amended return using Form 1040-X, do you need to include copies of all the supporting documents again, or just the new ones for the changes you're making? I don't want to mess this up and delay my refund even more. Also, does anyone know roughly how long amended returns are taking to process right now? I know regular returns were backed up for a while, wondering if amendments are facing similar delays.

This thread has been incredibly helpful! I'm in a similar situation where I think I rushed through my 2019 and 2020 returns during all the pandemic chaos. Reading through everyone's experiences, it sounds like this Notice 2023-21 extension is definitely worth taking advantage of. I'm particularly interested in the tools people have mentioned for reviewing old returns. Like @Carlos Mendoza, I'm pretty sure I missed some deductions in 2019 - I started working from home that year but didn't claim any home office expenses because I wasn't sure how it worked. One thing I'm curious about though - if I do find mistakes and file an amended return, will that trigger an audit or extra scrutiny from the IRS? I've always been paranoid about amending returns because I worry it flags you for review. Has anyone had issues with this, or is it pretty routine when you're claiming legitimate deductions you originally missed? Thanks to everyone who's shared their experiences here - this is exactly the kind of real-world advice that makes navigating tax stuff so much easier!

Make sure you mail it early! International/dual status returns take WAY longer to process. I sent mine last year on April 10 and didn't get my refund until August. The earlier you send it, the better.

I had a very similar situation last year as a dual status resident with temporary housing arrangements. After going through this confusion myself, I can confirm that you should mail your return to the Austin, TX international address since you listed a foreign address on your Form 1040. The key thing to understand is that the IRS routes returns based on what's written on the forms themselves, not your physical location when mailing. Since your 1040 shows a foreign address, the system expects it to go through international processing channels. A few additional tips from my experience: - Use certified mail with tracking as others mentioned - Include a cover letter explaining your situation if you want, but it's not required - Don't worry about the pay1040 discrepancy - the payment and return processing are handled separately - Expect 10-16 weeks for processing (mine took 14 weeks) The most important thing is to be consistent with what you put on your actual tax forms. Since you already listed the foreign address on your 1040, stick with the international mailing address. Good luck!