


Ask the community...
Has anyone used H&R Block or TurboTax for handling ISO sales with AMT credits? I'm wondering if they calculate everything correctly or if I need to use a specialized tax preparer for this.
I used TurboTax Premier last year for my ISO sales and it handled the AMT credit carryover pretty well. You need to make sure you have Form 8801 from your previous year's return and enter everything correctly. The software prompted me for all the right information, but you definitely need to understand the basics yourself to verify it's doing things right.
I tried using TurboTax but it got really confusing with AMT credits. Ended up hiring a CPA who specializes in equity compensation and she found several errors in what TurboTax was calculating. If you have a significant amount of money involved, might be worth getting professional help for at least one year so you understand how everything works.
This is a great question about AMT and ISO dispositions! I went through something very similar last year. One thing I learned that might help: when you sell those 3,000 shares at $6.75, you'll indeed have different tax treatments for regular vs AMT purposes. For regular tax, you'll have long-term capital gains of ($6.75 - $1.35) Ć 3,000 = $16,200. But for AMT purposes, you'll actually have a loss of ($6.75 - $13.50) Ć 3,000 = -$20,250. This AMT loss helps generate additional AMT credit that you can use to offset future regular tax liability. The key thing to remember is that AMT credits can only be used when your regular tax exceeds your tentative minimum tax in future years. So if you're planning to exercise more ISOs this year, you'll want to model out whether you'll be able to use those credits effectively or if they'll just carry forward again. I'd strongly recommend getting a tax projection done before you make any moves, especially if you're considering additional exercises. The timing of when you sell and exercise can make a huge difference in your overall tax bill.
This is really helpful! I'm new to all this ISO stuff and trying to wrap my head around it. When you say "AMT credits can only be used when your regular tax exceeds your tentative minimum tax" - does that mean if I'm subject to AMT again this year from new exercises, I basically can't use any of my existing AMT credit? That seems like it would create this endless cycle where you keep building up credits but can never actually use them if you keep exercising ISOs.
16 I'm in the exact same situation and my accountant advised something different than what others are saying here. He told me that since I own more than 2% of the S-Corp, health insurance has to be handled as additional compensation on my W-2, then I deduct it as self-employed health insurance on my personal taxes. He said S-Corps can't use QSEHRA for owners with >2% ownership. Is this right??
17 Your accountant is correct about the >2% owner treatment. As a more-than-2% S corporation shareholder, you cannot participate in a QSEHRA tax-free. Any health insurance premiums paid or reimbursed by your S-Corp must be included in your W-2 wages. The good news is you can then deduct those premiums on your personal tax return using the self-employed health insurance deduction, which essentially gives you the same tax benefit. Just make sure the arrangement is formally established by the corporation before any reimbursements are made.
As someone who's been through this exact scenario, I can confirm what others have mentioned about the >2% shareholder rules. The key thing to remember is that even though the reimbursements have to go through your W-2 as taxable wages, you still get the tax benefit through the self-employed health insurance deduction on Line 16 of Schedule 1. One thing I'd add that hasn't been mentioned - make sure you keep detailed records of the actual premium amounts your spouse's employer deducts from their paychecks. The IRS may want to see that the reimbursements from your S-Corp don't exceed the actual premiums paid. Also, the reimbursement timing matters - you generally need to reimburse in the same tax year the premiums were paid. The formal plan documentation is absolutely critical. I learned this when helping a friend who got audited - the IRS disallowed all their health insurance deductions because they couldn't produce the required corporate resolutions and plan documents, even though they had been reporting everything correctly on their tax returns.
This is really helpful context about the documentation requirements! I'm curious about the timing aspect you mentioned - if my spouse's premiums are deducted monthly from their paycheck, should I be doing monthly reimbursements from my S-Corp, or can I do it quarterly or even annually as long as it's within the same tax year? Also, do you know if there are any restrictions on reimbursing premiums that were paid before I officially established the health insurance plan with my S-Corp?
I went through this exact situation two years ago on my F1 STEM OPT! My employer had been incorrectly withholding FICA taxes for over a year before I caught it. Here's what I learned from the process: First, definitely contact your employer's HR/payroll department immediately with documentation showing your F1 status and the IRS regulations about FICA exemptions for non-resident aliens. Provide them with IRS Publication 519 and highlight the relevant sections. This stops future incorrect withholding. For getting your money back, I filed Form 843 myself and received my refund in about 10 weeks. The key is having complete documentation: your W-2 showing FICA withholding, copies of your visa documents, I-94 records, and a clear explanation of why you're exempt. I also included a timeline showing my entry date and length of stay to prove my non-resident alien status. Pro tip: When calculating how much you're owed, don't forget that FICA includes both Social Security (6.2%) and Medicare (1.45%) taxes - so you should be getting back 7.65% of your gross wages that had FICA withheld. In my case, it was about $2,400 for 14 months of incorrect withholding. The IRS was actually quite responsive once I had all the proper documentation together. Don't let your employer's confusion delay you from filing - you can handle this independently!
This is incredibly helpful, thank you! I'm definitely going to start gathering all my documentation right away. Quick question about the calculation - when you say 7.65% of gross wages, does that apply to my entire salary for the period, or just the wages that actually had FICA withheld? I'm asking because I had a brief gap in employment during my OPT period, so not every paycheck had FICA taxes taken out. Also, did you include any cover letter with your Form 843, or just submit the form with supporting documents? I want to make sure I don't miss anything that could delay the process.
I'm currently dealing with a similar FICA withholding issue on my F1 OPT! My employer has been taking out FICA taxes for 6 months now, and I just discovered this shouldn't be happening. Reading through all these responses has been a huge help - it's reassuring to know so many others have successfully resolved this. I'm planning to approach my HR department first with the IRS Publication 519 documentation that several people mentioned, then file Form 843 for the refund. One thing I'm wondering about - has anyone dealt with this situation where their employer initially pushes back or claims they're required to withhold FICA? My HR person seemed to think that because I'm on payroll like any other employee, the exemption doesn't apply. I want to be prepared with the right information when I follow up with them. Also, for those who used the specialized services mentioned (taxr.ai, Claimyr), did you find them worth the cost compared to handling Form 843 yourself? I'm pretty comfortable with paperwork but want to make sure I don't mess anything up that could delay my refund. Thanks to everyone who shared their experiences - this community has been incredibly helpful for navigating these complex tax situations!
Don't forget the income requirements too. If you made substantially more in 2025 than previous years, you might have phased out of the credit. This happened to me when I got a big promotion and couldn't figure out why my credit disappeared.
I'm a tax preparer and see this issue frequently. Based on your income level ($75K), you're definitely eligible for the full Child Tax Credit. The most likely culprit is indeed those advance CTC payments you received throughout 2024. Here's what probably happened: If you received the maximum advance payments ($250/month per child under 6, $300/month per child 6-17), you would have gotten $3,600 for your 4-year-old and $3,000 for your 7-year-old over the year. When you file your return, TurboTax calculates your total eligible credit, then subtracts what you already received in advance payments. Look for IRS Letter 6419 which shows your total advance payments, or check your IRS online account. The "remaining" credit showing as $0 just means you already received your full credit amount throughout the year - you're not losing anything! This is actually the system working as designed. Many taxpayers are confused by this because they're used to getting the credit as a lump sum at tax time.
This is exactly what happened to me! I was so confused when I first saw $0 for the child tax credit, but then I found my Letter 6419 and it all made sense. I had received $6,600 in advance payments throughout the year ($3,600 for my 5-year-old and $3,000 for my 8-year-old), which was exactly what I was eligible for. The thing that threw me off was that I had completely forgotten about those monthly deposits by the time I was doing my taxes. They just seemed like regular direct deposits after a while. It's actually pretty nice getting the money spread out during the year instead of waiting for tax time, but I can see how it confuses people when they're expecting that big credit at filing time. @957d079ff649 Thanks for the clear explanation - that's really helpful for understanding how this works!
Anastasia Romanov
I'm sorry to hear you're dealing with this! As someone who works in financial services, I can tell you that TurboTax and other tax prep companies have definitely tightened their advance criteria this year due to regulatory changes and risk management concerns. The fact that you got it before but not now doesn't reflect anything negative about your financial situation - they're just being more conservative across the board. Since you've already filed and been accepted, I'd honestly recommend just waiting for your actual refund rather than trying to start over with another service. The IRS has been processing returns much faster this season - most people are seeing their refunds within 10-14 business days for direct deposit. Given that you filed on Jan 24th, you should hopefully see movement soon on the "Where's My Refund" tool. If you're in a real bind financially, definitely avoid those predatory "refund loan" services that others have warned about. Your bank or credit union would be a much safer option for a small short-term loan if absolutely necessary. Best of luck with everything, and congrats on graduating! š
0 coins
Malia Ponder
ā¢This is really helpful perspective from someone in the industry! I had no idea there were regulatory changes affecting the advance programs this year. That actually makes me feel a bit better knowing it's not something I did wrong or a problem with my return specifically. I've been beating myself up thinking I somehow messed up my eligibility. Your point about waiting for the actual refund makes a lot of sense too - I guess I was just panicking because I was so used to getting that advance cushion. Thanks for the congrats and the solid advice about avoiding those sketchy loan services! š
0 coins
Evan Kalinowski
Hey! I'm actually a tax preparer and can shed some light on this. TurboTax made some significant changes to their advance program this year - they're now using a more restrictive algorithm that considers factors like your filing history, refund amount, and even seasonal demand. The Credit Karma integration you mentioned has also affected some users' eligibility since they merged the platforms. Since you already filed and got accepted, your options are pretty limited at this point. Most other services require you to file through them initially to qualify for advances. However, the good news is that the IRS has been processing refunds much faster this season - many people are getting theirs within 7-10 business days for direct deposit. Given that you filed on Jan 24th, I'd honestly just wait for your actual refund rather than paying fees to restart with another service. Keep checking "Where's My Refund" - you should see movement soon. And congrats on graduating! The financial stress after college is real, but your refund should hopefully come through quickly. š
0 coins