Just a heads up that HR Block and TurboTax both handle these 1099-R Code G situations pretty well. If you use either software, they'll walk you through the right questions to determine what type of transaction it was and how to report it.

I had a very similar situation last year and it turned out to be exactly what others have mentioned - an in-plan Roth conversion that I had completely forgotten about! The key thing to remember is that when you convert traditional 401k money (which was contributed pre-tax) to Roth 401k money (which grows tax-free), you have to pay income tax on the converted amount. That's why you're seeing a taxable amount in box 2a even though you didn't "withdraw" anything. Code G on a 1099-R doesn't always mean a traditional rollover between different accounts. It can also indicate in-plan conversions, automatic plan transfers when providers change, or other internal movements of retirement funds. Since you mentioned finding paperwork about "optimizing your retirement tax strategy," this almost certainly sounds like an in-plan Roth conversion. The good news is there's no early withdrawal penalty - you just need to include that amount as taxable income for the year. Make sure to report the 1099-R correctly on your tax return, and consider setting aside money for the tax bill if you haven't already. Definitely confirm with your plan administrator, but this sounds very straightforward once you know what happened!

Has anyone actually received conflicting advice from USCIS vs IRS on this? My wife is in adjustment of status too and our immigration lawyer told us one thing while our tax guy said something completely different!

I went through this exact same situation last year! The confusion is totally understandable because immigration status and tax status are two completely different things. Since you've been physically present in the US since June 2021, you actually already qualify as a resident alien under the substantial presence test (you'd have way more than the required 183 days). But even if you didn't meet that test, being married to a US citizen gives you the option to elect resident status for tax purposes under Section 6013(g). For your employer's HR department, tell them you're a "resident alien" for tax purposes. You'll complete your W-4 as a resident, and they'll withhold taxes normally. You won't need Form 8843 - that's only for nonresident aliens. You and your husband should file jointly using Form 1040. If this is your first year making the resident election, you'll need to attach a statement to your return signed by both of you declaring the election. The joint filing will almost certainly save you money compared to filing separately. Your pending adjustment of status doesn't affect any of this - tax residency and immigration status are completely separate determinations. Hope this helps clear things up!

Lol welcome to the club. Been waiting 6 months with this stupid code 😤

Ugh I feel your pain! Just went through this exact same thing last month. The 810 code basically means they think someone might be trying to steal your identity or file a fake return with your info. It's super frustrating but here's what worked for me: 1. Don't waste time calling the regular IRS line - they can't help with this 2. Call 800-830-5084 (the ID verification line) early morning or try the callback option 3. Have ALL your docs ready: driver's license, Social Security card, W-2s, last year's return 4. You might also get a letter (5071C) asking you to verify online at ID.me The whole process took about 8 weeks for me after I verified my identity. I know it sucks when you need that refund money but hang in there! Also seconding what others said about taxr.ai - I used it too and it actually explained why I got flagged (apparently filing early + moving states triggered their system 🙄). Worth the five bucks for peace of mind honestly.

Um, isn't there a tax exemption for scholarships and fellowships? My roommate is on a full-ride scholarship and she told me she doesn't pay taxes on any of it. Super confused why some people have to pay taxes on this stuff and others don't...

As a fellow grad student who went through this same confusion, I can confirm what others have said - fellowship money for living expenses is definitely taxable income. The key thing that helped me was understanding that the IRS distinguishes between "qualified educational expenses" (tuition, required fees, books) which are tax-free, versus everything else which is taxable. Since your tuition is covered separately and the fellowship is for living expenses, you'll need to report the full amount as income. Even though your university won't send you a 1099 or withhold taxes, you're still responsible for paying them. I'd strongly recommend setting up quarterly estimated tax payments once you know your fellowship amount for the year. I made the mistake of waiting until filing season and got hit with an underpayment penalty. The IRS Form 1040-ES has worksheets to help calculate what you owe. Also, keep detailed records of any educational expenses you pay out of pocket - while they won't reduce your taxable fellowship income, they might qualify for education tax credits that can lower your overall tax bill.

11 Just want to mention that if your partnership had less than $250,000 in receipts AND less than $1 million in assets, you qualify for the Form 1065-EZ... oh wait, I'm totally wrong - there is no EZ version for partnerships! Sorry for the confusion. This is part of why partnership taxation is so frustrating for small businesses.

For what it's worth, I ended up going with paper filing for my barely-active LLC partnership last year and it wasn't as scary as I thought it would be. The IRS website has pretty clear instructions for Form 1065, and since we had almost no transactions, most lines were just zeros anyway. The main thing is to make sure you don't miss the filing deadline (March 15th for partnerships, or September 15th with an extension). Even if you made no money, you still need to file or you could face penalties. I printed everything out, double-checked all the math (which was minimal), and mailed it certified mail so I had proof of delivery. Took maybe 2 hours total including printing and a trip to the post office. Saved me over $100 compared to TurboTax, which would have been more than our entire revenue for the year. Sometimes the old-school approach is the most cost-effective!