One important thing nobody has mentioned yet is that your parents need to be aware of FIRPTA - the Foreign Investment in Real Property Tax Act. This only applies if they're not US persons (citizens or permanent residents) and are selling US property, not foreign property. But the reverse situation is important too! Many countries have their own version of FIRPTA that applies to foreign nationals (including Americans) selling property in their country. The foreign country might withhold a percentage of the sale proceeds regardless of actual gain. Your parents should check if the country where they're selling has a withholding requirement, as this could affect their cash flow even if they can later claim it back.

Something nobody's mentioned - if the total value of all foreign financial assets is over $10,000 at any point during the year, your parents likely need to file an FBAR (FinCEN Form 114). Selling a property worth $215-260k would definitely trigger this. There's also Form 8938 (Statement of Specified Foreign Financial Assets) which has different thresholds depending on whether they live in the US or abroad and whether they file jointly or separately. The penalties for not filing these forms can be severe, even if no tax is owed! This is separate from the actual tax on the capital gain.

Has anyone here ever actually filed an SS-8? I'm curious because TurboTax prompted me to file one last year for some side gig work, but after reading about how long they take to process (6+ months!), I decided against it and just paid the self-employment tax instead.

I went through this exact situation last year with my wife's postdoc fellowship at a research university. TurboTax kept prompting us for the SS-8 form, but after doing some research and consulting with our university's international scholar services office, we learned it was completely unnecessary. The key issue is that fellowship stipends have a special tax classification that's different from both employee wages and independent contractor income. When you enter fellowship income under the 1099 miscellaneous section, TurboTax's algorithm incorrectly assumes there might be a worker classification issue that needs to be resolved with an SS-8. Here's what we did: we removed the fellowship income from the 1099 section entirely and reported it as "Other Income" on line 8z of Form 1040 with the description "Fellowship Stipend." This immediately stopped the SS-8 prompts. The fellowship income was still taxable for federal income tax purposes, but it wasn't subject to self-employment tax, which saved us quite a bit of money. One important note for your husband's H1B situation: make sure to keep detailed records showing the clear distinction between the fellowship period (January-August) and the W-2 employment period (September-December). The IRS likes to see clean documentation that explains the change in status and income type.

For what it's worth, I had to deal with this exact situation with the 2022 tax year (filed in 2023). Sold some Taylor Swift tickets for way more than I paid (didn't realize they'd be so valuable when I bought them!!) and got a 1099-K from StubHub. The way it worked in TurboTax was: 1. Entered the 1099-K amount as reported 2. In the "related expenses" section, I put what I originally paid for the tickets 3. When asked if this was a "business," I selected "no" since it was a one-time thing I didn't have to mess with Schedule C at all, it was just reported as miscellaneous income on Schedule 1. The difference between what I got and what I paid was taxed as ordinary income.

I went through this exact same situation last year with StubHub and multiple other platforms! The confusion around 1099-K reporting for ticket sales is really common because different platforms handle it differently. Here's what I learned from my research and experience: First, verify what StubHub actually reported by checking if the $12,000 matches what was deposited to your bank account or if it's higher. If it matches your deposit, they've already deducted their fees and you shouldn't deduct them again. For entering this in tax software, both TurboTax and H&R Block will walk you through it under "Other Income" or "Less Common Income" sections. You'll enter the 1099-K amount exactly as shown, then add your related expenses (original ticket cost) to offset the income. The key is keeping good records - save your original purchase confirmations, the 1099-K, and any StubHub transaction summaries. This will help you determine exactly what was deducted and what you can claim as expenses. Since this was a one-time sale, you're correct that this should be treated as miscellaneous/hobby income rather than business income, which keeps things simpler and avoids self-employment tax complications.

As someone who's dealt with transcript codes before, I can confirm that transcripts absolutely do NOT update multiple times per day. The IRS processes accounts in weekly batches, and your cycle 05 means Thursday updates only. A 570 code typically indicates they need to verify something on your return - could be income matching, identity verification, or they caught an error that needs manual review. I've seen this process take anywhere from 1-3 weekly cycles to resolve. Since you're filing from abroad for the first time, it's quite possible they're just doing additional verification due to foreign address/income reporting. My advice? Stop checking daily (I know it's hard!) and plan to check again next Thursday. The anxiety is real, but checking hourly won't change anything unfortunately.

As someone who's been through this process multiple times, I can confirm that transcripts only update once per weekly cycle. Your cycle 05 means Thursday updates, so unfortunately you'll need to wait until next Thursday to see any changes. The 570 code is frustrating but common - it just means they need to manually review something on your return. Since you mentioned filing from abroad for the first time, that could definitely be a factor as the IRS often does additional verification for international filers. I'd recommend setting a reminder to check next Thursday rather than checking daily (trust me, I've been there!). In the meantime, you might want to gather any documentation related to your foreign income or address changes just in case they need additional verification. The waiting is tough, but the system is pretty predictable once you understand the weekly cycle pattern.

I'm so incredibly sorry for your loss, PaulineW. Losing a child is every parent's worst nightmare, and my heart goes out to you during this devastating time. I wanted to share something that might help with your immediate financial stress. Since you mentioned the medical bills are piling up and you're unable to work right now, you should know that many states have emergency assistance programs specifically for families dealing with infant loss. These programs can sometimes help with medical bills, funeral costs, and even temporary living expenses. Also, if you haven't already, please contact the hospital's billing department and explain your situation. Most hospitals are required by law to offer charity care or payment assistance programs, especially in cases of infant loss. They may be able to significantly reduce or even eliminate some of your bills. Don't let them send you to collections without first exploring these options - you have rights as a patient. Regarding the Child Tax Credit, everyone here has given you excellent advice. Just know that you absolutely deserve every benefit available to you, and claiming these benefits honors your son's brief but meaningful life. Please be gentle with yourself. There's no timeline for grief, and handling practical matters like taxes when you can is perfectly okay. Your son's life mattered, no matter how brief, and the system recognizes that too.

I am so deeply sorry for your loss, PaulineW. What you and your family are going through is heartbreaking beyond words, and please know that asking these practical questions doesn't diminish your grief or love for your son - it shows you're being responsible during an impossible time. Everyone here has given you excellent advice about the Child Tax Credit, and I want to emphasize that you absolutely qualify. Your son's life, however brief, matters and the tax code recognizes this. The IRS considers any child born alive during the tax year as eligible for the Child Tax Credit, regardless of how long they lived. I wanted to add a few additional points that might help: 1. When you apply for the posthumous Social Security Number, you can also request expedited processing by explaining your circumstances. The SSA sometimes prioritizes these cases, especially when tax deadlines are involved. 2. Consider speaking with a tax professional who has experience with these sensitive situations. Many CPAs and tax preparers have dealt with similar cases and can guide you through the process with the compassion and expertise you need. 3. If you had pregnancy complications or your son required any medical care during his brief life, all of those expenses can potentially be included in your medical deductions along with your ongoing grief counseling costs. Please take care of yourself first. The financial matters will work out, but your healing is the priority. Your son's brief presence in this world was meaningful, and claiming these benefits is simply part of honoring his life and taking care of your family during this difficult time.