Dont forget about ur W-2! Box 15-17 should show the state you worked in, taxes withheld etc. If u have a W-2 showing u paid taxes to the new state that's pretty strong evidence! Also did u file a part-year resident return in ur old state? That can help show u knew u were changing residency.

As someone who's dealt with state tax residency issues, I'd strongly recommend NOT amending your returns to show you remained a resident of your original state if you genuinely established residency elsewhere. That's basically giving up money you don't owe. The documentation you provided (lease, utility bills, tax returns) is actually pretty solid evidence. States often push back initially hoping people will just give up and pay. Here are a few additional steps to consider: 1. Look into your state's specific residency rules - many states have a "183-day rule" where physical presence for more than half the year establishes residency regardless of your driver's license status. 2. Create a detailed timeline showing your physical presence in each state throughout the year. Include work schedules, travel receipts, anything that shows where you actually were. 3. Consider getting a tax attorney who specializes in multi-state residency issues. The consultation fee might be worth it to avoid paying taxes you don't owe. 4. If your new state has no income tax or lower rates, you have even more reason to fight this - the savings could be substantial. Don't let them bully you into paying if you legitimately changed your residency. The driver's license issue is inconvenient but not necessarily fatal to your case.

I'm confused about the actual filing process. If I do qualify as a trader (I trade 15-20 times daily, avg holding time <5 days), when exactly do I need to file the 475(f) election? Is it with my 2025 return or do I need to file something earlier? I formed my LLC in January.

Based on all the discussion here, it sounds like the consensus is pretty clear - you need trader status regardless of entity structure to make the 475(f) election. Your trading pattern of 3-5 trades per month with 6+ month holding periods definitely puts you in investor territory. I'm curious though - have you considered whether there might be other tax strategies that could be beneficial for your LLC structure without needing the 475(f) election? For instance, depending on your situation, you might benefit from tax-loss harvesting strategies or potentially electing S-Corp status for your LLC if you're generating significant trading income. Sometimes the alternatives can be more beneficial than trying to force a square peg (investor activity) into a round hole (trader election).

Just to add another perspective - I was in a similar situation a couple years ago. For filing past Form 8606s, I actually did not get penalized when I proactively submitted them. The IRS seems more concerned that you're tracking your basis correctly than penalizing people trying to fix honest mistakes. I did all three years at once and sent them to different addresses though - they have specific instructions for where to send prior year forms. Check the IRS website for the correct mailing addresses for prior year returns.

For anyone else dealing with this, make sure you're using the correct Form 8606 for each tax year! The form changes slightly year to year, and you need to use the version that corresponds to the tax year you're filing for. You can find prior year forms on the IRS website by searching "Prior Year Forms 8606" - don't just use the current year form for all your back filings.

For anyone filing internationally, ALWAYS keep copies of EVERYTHING you send to the IRS! I learned this the hard way when my return got "lost" after being delivered. When I finally got through to the IRS, they had no record of receiving it even though tracking showed delivery. I had to resend all my documents with proof of the original delivery date. The whole process took 5 months before I got my refund. Paper returns from overseas are definitely not processed with any urgency.

International returns are definitely a headache! I had a similar experience filing from the UK last year. The Where's My Refund tool on IRS.gov is 100% legitimate and safe - it's the official IRS website and they absolutely need your SSN to verify your identity before showing your refund status. One thing I learned: the tracking updates for international returns are really sparse. Mine showed "Return Received" for literally 10 weeks before suddenly jumping to "Refund Approved." Don't panic if you don't see movement for months - that's unfortunately normal for paper returns from abroad. Also, make sure you're checking the tool with the exact refund amount you claimed on your return. Even being off by a dollar will prevent it from finding your information. The system is pretty picky about matching all three pieces: SSN, filing status, and exact refund amount. Hang in there - $3,800 is definitely worth the wait, even if the process is frustrating!

15 Just a heads up that even with the best calculations, your withholding probably won't be perfect. I aim for a small refund (around $500) as a buffer rather than trying to hit exactly zero. That way if I made a small error or something unexpected happened, I'm not scrambling to pay a bill in April.

I've been dealing with this same issue for years! One thing that really helped me was keeping track of my withholding throughout the year using a simple spreadsheet. I update it every few months to see if I'm on track. The key insight I learned is that if you're switching jobs mid-year, you really need to account for what was already withheld at your previous job. I made the mistake of not doing this once and ended up with a huge refund because my new employer was withholding as if I hadn't earned anything all year. Also, if you get any kind of bonus or irregular income, make sure to either have extra withheld from that payment or adjust your regular withholding temporarily. Those lump sum payments can really throw off your calculations for the year.