Something nobody mentioned - check if any of those investments could be considered qualified education expenses in the coming year. If your daughter is starting college, you might be able to time selling some investments with paying tuition and have them count toward education tax benefits like the American Opportunity Credit.

One thing to consider that might help with timing - if your daughter will be 18 during 2025 and truly providing more than half of her own support through work/internships, you could potentially avoid kiddie tax entirely by waiting. But be careful about the "more than half support" test - it includes tuition, room, board, everything. Also, don't forget about gift tax implications if you're funding her investment account. The annual exclusion is $18,000 for 2024, but if this account has grown from gifts over the years, make sure you're tracking that properly. Another strategy: if she has any investments that are currently at a loss, consider harvesting those losses this year to offset some of the gains. Even though she's subject to kiddie tax, capital losses can still offset capital gains dollar-for-dollar before the kiddie tax calculation even comes into play.

One crucial aspect that hasn't been fully addressed is the depreciation deduction for foreign rental property. If you do rent out your Costa Rica property, you can depreciate the building (not the land) over 27.5 years for residential rental property, just like US rental property. However, there's a major catch with foreign property depreciation: depreciation recapture rules still apply when you sell, but you can't use like-kind exchanges (1031 exchanges) to defer the gain since those only work for US property. This means you'll eventually pay ordinary income tax rates (up to 25%) on all the depreciation you claimed, plus capital gains on any appreciation. Also, make sure to keep detailed records of the property's basis in both USD and Costa Rican colones, including any improvements. Currency fluctuations can create additional gains or losses when you eventually sell, and the IRS requires you to track the USD basis for tax purposes. Given your $125k income, if you're planning to rent the property even occasionally, the depreciation deduction could provide meaningful tax benefits in the short term - just be aware of the long-term tax implications when you sell.

Don't forget about the potential impact on your state taxes too! If you're currently a resident of a state with income tax, buying foreign property and spending significant time there could affect your state tax residency status. Some states have very aggressive rules about maintaining residency for tax purposes. If you start spending several months a year in Costa Rica, you might inadvertently trigger a state tax audit where they question whether you're still a bona fide resident. This is especially important if you're in a high-tax state like California or New York. On the flip side, if you're able to establish that you've become a non-resident of your current state (while being careful not to become a resident of another state), you could potentially save on state income taxes on your $125k salary. The key is understanding your current state's rules about what constitutes residency - it's usually based on factors like days present, where your permanent home is located, where you're registered to vote, etc. Some states use a 183-day test, others are more complex. This is another area where the interplay between your remote work situation, time spent at the Costa Rica property, and tax planning could create opportunities or pitfalls depending on how it's structured.

Just a heads up - I lived in Korea for 12 years and moved back to the US last year. Korean banks will also want your father to file a W-8BEN with them to claim the reduced treaty rate on any interest earned from Korean accounts. Otherwise, Korean financial institutions will withhold at their domestic rate (around 15.4% currently). It's a two-way street with these treaties - he needs to claim the treaty benefits with BOTH the US and Korean tax authorities. Also, make sure he's reporting any Korean bank accounts on FBAR if the aggregate total exceeds $10,000 at any point during the year. The penalties for missing that are brutal!

This is a complex situation that involves multiple layers of US tax compliance. Based on what you've described, your father needs to address several critical issues beyond just the treaty benefits: 1. **Formal expatriation process**: Since he's been a green card holder for 30 years, he needs to file Form I-407 to abandon permanent resident status and Form 8854 for expatriation tax purposes. The exit tax provisions could apply given his long-term resident status. 2. **Treaty benefits**: Yes, Article 13 of the US-Korea tax treaty does provide for a reduced 12% withholding rate on interest income instead of the standard 30%. He'll need to file Form 1040-NR and Form 8833 to claim these benefits. 3. **Korean tax obligations**: Don't forget he may also have Korean tax filing requirements as a returning resident. Korea generally taxes worldwide income for residents. 4. **FBAR reporting**: If he maintains US bank accounts or investments totaling over $10,000, he'll need to file FBAR (FinCEN Form 114) annually. Given the complexity and potential penalties involved (especially with expatriation requirements), I'd strongly recommend consulting with a tax professional who specializes in international tax and expatriation before filing anything. The costs of professional help will likely be far less than potential penalties for non-compliance.

One trick I learned from my tax guy - if you're 100% certain you don't need a 1095-A and this is just a system error, try entering $0 on line 11 of Form 8962 (Premium Tax Credit form). Sometimes the rejection happens because the system is expecting Form 8962 to be filed, not necessarily because it needs the actual 1095-A data. This worked for my sister who had a similar issue. The return processed normally and she got her refund. Just make sure you're absolutely certain you didn't have marketplace coverage, or this could cause problems later.

I work as a tax preparer and see this exact issue multiple times every season. The root cause is usually a data mismatch between different government systems that don't always communicate properly when people transition between coverage types. Here's what I recommend doing in order of priority: 1. **Contact Ambetter first** - Ask them to send you a summary of your coverage history and confirm whether any of your plans were ever processed through the marketplace. Sometimes agents sign people up for marketplace plans without making it clear. 2. **Check your previous tax returns** - Look at your 2017-2023 returns to see if you ever filed Form 8962 or reported premium tax credits. If you did, there might be leftover flags in the system. 3. **Use the Taxpayer Advocate Service** - If the standard helplines aren't resolving this quickly, contact TAS at 1-877-777-4778. They specialize in resolving these kinds of system errors and can often get things fixed faster than regular customer service. 4. **Document everything** - Keep records of all your calls, reference numbers, and any documentation showing your coverage history. This will be crucial if you need to prove your case later. The good news is that this is a known issue and there are established procedures to resolve it. Don't let it stress you out too much - you will get your refund, it just might take a little longer than usual.

Just want to add an important warning - NEVER give these callers any personal information and NEVER agree to pay anything! A friend of mine got scammed out of $2,400 because the caller knew some basic info about him (probably from data breaches) which made the call seem legitimate. The scammers had him buy Target gift cards and read the numbers to them over the phone. The real IRS will NEVER ask for gift cards as payment!

I've been dealing with these exact same calls! What helped me was creating an account on the IRS website (irs.gov) and checking my tax transcript directly - it shows your complete tax history and any balances owed. Since you received your refunds, you're almost certainly fine, but seeing it officially documented gave me complete peace of mind. Another red flag with these scam calls is that they often demand immediate payment and threaten arrest or asset seizure. The real IRS sends multiple written notices before taking any collection action, and they accept standard payment methods like checks or bank transfers - never gift cards or cryptocurrency. If you want to be 100% sure, you can also request a tax account transcript by mail using Form 4506-T. It's free and comes directly from the IRS, so you'll have official documentation of your tax status. Stay strong and don't let these scammers stress you out!