I literally just dealt with this same issue. The IRS has a "4-year limitation" for the AOTC. For whatever it's worth, the IRS doesn't actually check which years or where you claimed education credits before - they mostly rely on what you report. But lying would be tax fraud, so I'm not suggesting that!

Great question! I went through something similar a few years ago. Since you completed your undergrad in Canada, you've already used up your 4 years of post-secondary education eligibility for AOTC, which means your master's degree won't qualify regardless of where you do it. The AOTC is specifically for undergraduate education AND limited to your first 4 years of post-secondary education total. For your hypothetical 2021 scenario - if someone finished their bachelor's abroad in 2021, they wouldn't be eligible for AOTC on their 2021 US return unless they were also enrolled in a qualifying US institution during that tax year for undergraduate coursework. The good news is that as a grad student, you should definitely look into the Lifetime Learning Credit instead. It covers graduate education, has no "first 4 years" limitation, and can give you up to $2,000 per year (20% of up to $10,000 in qualified expenses). Just make sure your income doesn't exceed the phase-out limits, which are lower than AOTC limits.

I went through this exact situation last year and it was such a stressful waiting game! My bank rejected the direct deposit in late March, and I finally got my check in early May - so about 5-6 weeks total. The hardest part was not knowing what was happening during that time. A few things that helped me get through it: - I called my bank to confirm exactly when they sent the rejection notice back to the IRS - I set up informed delivery with USPS so I could see when mail was coming - I checked the "Where's My Refund" tool obsessively (even though it barely updates) The waiting is brutal when you really need that money, but hang in there! Your check should arrive within the next few weeks. And definitely double-check your address with USPS like someone else mentioned - that's super important to avoid any delivery issues.

I'm going through the exact same thing right now! Filed in early April and just found out yesterday that my bank rejected the deposit because I closed that account in February (totally spaced on updating my info). Reading through all these responses is both helpful and terrifying - sounds like anywhere from 3 weeks to 3+ months depending on how backed up they are. I'm really hoping it's closer to the 4-5 week timeline some people mentioned. I've already signed up for USPS informed delivery based on the suggestions here, and I'm going to try pulling my transcript this weekend to see if I can figure out what's happening. Has anyone had success with the Taxpayer Advocate Service for situations like this? I'm wondering if it's worth trying since I really need this refund for some medical bills that are coming due soon.

Instead of going completely exempt, have you considered just adjusting your W-4 to have a specific dollar amount withheld from the bonus? Most payroll systems allow you to specify an exact withholding amount rather than using the standard percentage. You could calculate roughly what you'll owe on the bonus and have just that amount withheld.

I've been through this exact situation and learned the hard way that "going exempt" isn't actually exempting you from taxes - it's just deferring when you pay them. Here's what I wish someone had told me: The 22% supplemental withholding rate on bonuses is often actually LESS than what you'd pay if that money was added to your regular paycheck and taxed at your marginal rate. With your $62k salary plus a $13k bonus, you're looking at potentially being in the 22% bracket anyway. Instead of going exempt, consider this approach: Calculate roughly what you'll owe on the bonus (22% federal + your state rate + FICA taxes), then ask payroll to withhold that specific amount. This way you get more cash upfront than the standard withholding but won't get hit with a surprise tax bill. The real danger isn't just owing money at tax time - it's the underpayment penalties if you don't meet the safe harbor rules. With a bonus that large, you could easily trigger penalties even if you have the money to pay the taxes later. Your coworkers' advice might work for them depending on their specific situations, but with your income level and family situation, I'd be very careful about following that strategy without running the numbers first.

Has anyone looked into using a Health Reimbursement Arrangement (HRA) for an S-Corp to cover life insurance? I've heard conflicting info about this approach.

Based on my experience with S-corp taxation, I'd recommend being very careful here. The IRS is particularly strict about owner-employees trying to deduct personal benefits through their corporations. For a single-owner S-corp, life insurance premiums paid by the company will almost certainly be treated as constructive dividends or compensation to you personally. This means: 1. The premiums aren't deductible as a business expense 2. You'll likely need to report them as taxable income on your personal return 3. If treated as compensation, you'll also owe payroll taxes The key issue is that as the sole owner-employee, there's no legitimate business purpose for the corporation to pay your life insurance - it's clearly a personal benefit. The IRS has consistently ruled against this in similar cases. Your best bet is probably to just pay the premiums personally with after-tax dollars, or consider the Section 162 bonus plan that Owen mentioned if the math works out better for your tax situation. Always worth running the numbers with a qualified tax professional though!

One thing nobody's mentioned - if you haven't filed your 2023 taxes yet, you might want to request an extension to give yourself time to make sure everything is reported correctly. The 1031 reporting on Form 8824 can be pretty complicated when you have boot involved.

I'd strongly recommend getting a second opinion from a tax professional who specializes in 1031 exchanges before filing. While everyone here is correct that the boot is generally taxable in the year of sale, there can be some nuances depending on exactly how your exchange was structured. For example, if there were any complications with the original sale (like delayed closings or escrow issues) or if your QI agreement had specific language about when funds are considered "received," it might affect the timing. I've seen cases where the technical details of the exchange documents made a difference in how the IRS viewed the transaction. Given the significant tax bracket difference you mentioned between 2023 and 2024, it's worth investing in professional advice to make sure you're not missing any legitimate planning opportunities. A qualified tax attorney or CPA with 1031 experience should be able to review your specific documentation and confirm the proper reporting year.