I went through this exact same situation two years ago and it was really confusing at first! The negative W2 wages are completely normal - it's just how payroll systems handle the transition from regular taxable wages to non-taxable workers comp benefits. What probably happened is your employer initially processed some payments as regular wages early in the year, then had to "reverse" or correct those entries once your workers comp status was finalized. The negative numbers you're seeing are essentially the system's way of backing out those wages so they don't incorrectly appear as taxable income on your final W2. Your actual W2 at year-end will show the correct amount of taxable wages you earned (which sounds like it would be zero if you've been on workers comp the entire year). Don't worry about having to explain negative numbers to the IRS - they'll never see those paystub details, just the final corrected totals on your W2 form.

I've been through a similar workers comp situation and wanted to share what I learned from my HR department. The negative W2 wages are indeed normal, but here's an additional detail that might help: if you receive a 1099-MISC from your workers comp insurance carrier, don't panic! Sometimes they issue these forms even though the payments aren't taxable income. The 1099-MISC is just for their record-keeping purposes and doesn't mean you owe taxes on those benefits. Also, if you're married and file jointly, make sure your spouse understands that your zero wages won't affect their ability to claim certain deductions or credits based on their income. I was worried about this initially, but our tax situation was handled normally with just my spouse's W2 income being reported. Keep all your workers comp documentation organized - not for tax purposes, but because you might need it for other things like applying for certain benefits or if there are any disputes with your claim later on.

Has anyone actually run the numbers both ways? In my experience, filing separately almost never saves money for most couples, especially in Texas which has no state income tax. The only times I've seen MFS work better is with income-based student loan repayment plans or if one spouse has massive medical expenses or casualty losses.

This exact same thing happened to my sister and brother-in-law last year! The "disappearing refund" when combining W-2s is usually because one spouse (or both) had their withholding set up assuming they were the only income earner in the household. At $135k combined income, you're definitely not hitting any major penalty thresholds - this is purely a withholding issue. When you file jointly, the IRS looks at your total household income and applies the tax brackets accordingly, but your individual employers were each withholding based on incomplete information. Before you decide on filing separately, I'd strongly recommend using the IRS withholding calculator on their website to see what your 2025 W-4s should look like. Filing separately might seem appealing now, but you'll likely lose out on valuable credits and deductions that could cost you way more than the few hundred you currently owe. The good news is this is totally fixable for next year once you get your withholdings aligned properly!

Just wanted to add that Sprintax isn't always the best with explaining the FICA refund process for international students and scholars. I was on an F1 visa (similar issue with FICA refunds as J1) and they never told me the refund would come as a check separate from my regular tax refund. My check ended up at my university's international office because that was the address I had listed, and I almost missed it! For anyone reading this who's filing through Sprintax in the future - make sure you use an address where you'll actually be able to receive mail 6-12 months after filing.

I went through this exact same situation with my J1 visa in 2022! The waiting is absolutely nerve-wracking, especially when you can't track the status anywhere. A few key points from my experience: - FICA refunds are indeed processed as paper checks only, never direct deposit - They use the address from your Form 843, not your 1040NR - Processing times are incredibly slow - mine took 14 months total Since you've moved back to your home country, I'd strongly recommend calling the IRS international line at +1-267-941-1000 as soon as possible to update your address. When I called, they were able to see that my check had already been processed and mailed to my old address. They put a stop on that check and reissued a new one to my international address. The key is being proactive - don't just wait and hope it shows up. The IRS won't automatically know you've moved internationally unless you tell them. Also, keep in mind that even after you update your address, it can take another 4-6 weeks for them to reissue the check. Good luck! The money is probably there waiting for you, just needs to get to the right address.

Be very careful with Republic Bank TPG processing! Last year my refund got stuck in their system for THREE WEEKS after the IRS released it. The IRS transcript showed "refund issued" but Republic claimed they never received it. Had to file a Case Inquiry Form with their Resolution Department using specific ACH trace numbers from the IRS. The issue was their internal Refund Clearing System (RCS) had flagged my account for "verification" but never actually reviewed it. Make sure you monitor both your IRS transcript AND Republic's portal.

Did you opt for fees taken from refund? That matters. Creates extra steps. Republic holds funds longer. Different processing path. Worth checking.

Have you considered using different tax software to get another perspective? I was in a similar situation and tried filing my taxes with both TurboTax and H&R Block online to see if they interpreted my custody situation differently. TurboTax told me I couldn't file HOH with 50/50 custody if I wasn't claiming the dependent, but H&R Block's questionnaire was more detailed and determined I could because my daughter was physically present in my home for 183 days that year (I kept meticulous records). The difference in my refund was over $2,000!

I went through this exact situation two years ago and it was so confusing! What helped me was creating a detailed custody calendar showing exactly which nights my daughter stayed at each home. Even though our decree said "50/50," the actual schedule meant she was with me 186 nights and with my ex 179 nights due to how holidays and school breaks fell. That extra week made all the difference for HOH qualification. I kept records of school pickup/dropoff, overnight stays, and even had my daughter's school confirm which address was listed as primary. The IRS wants to see actual physical presence, not just what the divorce decree says. My tax preparer initially told me I couldn't file HOH in years when my ex claimed the dependency exemption, but after showing the detailed custody records, we discovered I qualified based on the "more than half the year" test. The key is proving she lived with you for at least 183 days, regardless of who gets the dependency exemption. I'd recommend tracking every single night this year so you have concrete documentation. Even if your arrangement is supposed to be exactly 50/50, real life rarely works out to be perfectly equal when you count actual overnights.