One more thing - even if you don't get any form from your employer documenting the gift card, you're still legally required to report it as income. The IRS considers all prizes and awards as taxable income unless they're very specific exceptions (which a workplace raffle isn't).

Hey Micah! I went through something similar last year with a raffle prize at work. The key thing is to check your most recent paystub after you won the gift card - many employers will automatically include the value as taxable income and withhold taxes right away. If you see an extra $300 (or close to it after taxes) on your paystub labeled as "bonus," "other compensation," or something similar, then your employer already handled it and it will show up on your W-2. In that case, you're all set! If it's not on your paystub and you don't receive a 1099-MISC by early February, you'll need to report it as "Other Income" on Schedule 1, Line 8z. Just write something like "workplace raffle prize - $300" next to it. Either way, you'll pay regular income tax on it based on your tax bracket. So if you're in the 22% bracket, you'd owe about $66 in federal taxes on that $300. Good luck with your first solo tax filing!

I know this is a bit off-topic, but make sure you're also checking if you need to file an FBAR (FinCEN Form 114) if your US financial accounts exceeded $10,000 at any point during the year. That requirement is separate from income tax filing and applies to many non-residents with US accounts regardless of whether you owe any tax.

I went through this exact situation two years ago and can confirm what others have said about the 183-day rule. Since you had zero days of US presence, your capital gains from stock sales are not subject to US taxation as a non-resident alien. However, I'd strongly recommend keeping detailed records of your physical presence (or lack thereof) in the US. I maintained a simple spreadsheet with dates, locations, and even flight records showing I never entered the US that tax year. This documentation proved invaluable when I later had questions about my filing position. One thing to consider: if you had any taxes withheld at source on dividends or other income during the year, filing a 1040NR might actually get you a refund. But for pure capital gains with no US presence, you're correct that filing isn't required. Just make sure you understand the distinction between different types of income from your brokerage account.

I went through this exact same process about 6 months ago and totally understand the anxiety! The good news is that it's really not as scary as it seems at first. I called the number on my 5747C letter and yes, the wait time was brutal - about 2.5 hours on hold - but once I got through, the actual verification was pretty straightforward. The agent asked me to confirm basic info like my address, filing status, and some line items from my current and prior year returns. They also asked about my employer and a few specific deductions I claimed. The whole conversation took maybe 20 minutes once I was connected. My refund was issued exactly 6 weeks after the call, which was actually faster than they initially told me to expect. Just make sure you have your tax documents handy when you call - both this year's and last year's returns. The IRS agent was actually pretty helpful and explained that my return was flagged because I had moved states and changed jobs, which created an unusual pattern in their system. Don't stress too much about it - it's really just a verification process to make sure you are who you say you are!

I got a 5747C letter about three weeks ago and finally made it through the verification process yesterday. I wanted to share what worked for me since I know how stressful this can be! I tried calling multiple times but kept getting disconnected or couldn't get through at all. Finally decided to schedule an in-person appointment at my local Taxpayer Assistance Center, which was honestly the best decision. The appointment was scheduled for about 10 days out, but the actual process was so much smoother than trying to call. The IRS representative was really professional and walked me through everything step by step. She explained that my letter was triggered because I had claimed the Earned Income Tax Credit for the first time this year after getting a new job. Apparently that's a common trigger for their fraud detection system. I brought my driver's license, Social Security card, current year tax return, last year's return, and all my W-2s. The whole appointment took about 25 minutes, and she was able to verify my identity on the spot. She told me to expect my refund within 6-9 weeks, but honestly just having it resolved felt like a huge weight off my shoulders. If you're struggling with the phone lines, I'd really recommend trying the in-person route if you have a Taxpayer Assistance Center nearby. Much less frustrating than sitting on hold for hours!

I'm dealing with a somewhat similar situation right now! My case involves proving I'm related to my nephew through my half-brother, and it's been such a headache. What really helped me was contacting my state's vital records office to see if they had any pre-adoption documentation or records that might show biological family connections - sometimes these exist separately from the sealed adoption records. Also, don't overlook things like old family photos, Christmas cards, or even social media posts that might help establish the family relationship over time. I know it sounds silly, but I actually included some old family photos with names written on the back as part of my documentation package, along with more formal documents. One thing I learned is that it's really important to be super clear in your cover letter about WHY you're the appropriate person to claim your niece. The IRS wants to see that you're not just related, but that you actually provided the majority of her support and care. Document everything - housing costs, food, medical expenses, school supplies, etc. Good luck with this! The whole process is frustrating but you'll get through it.

I went through almost the exact same situation a couple years ago with my nephew - complicated by adoption records being sealed. What finally worked for me was submitting a comprehensive package that included: 1. DNA test results (I used AncestryDNA and got the official report) 2. Affidavits from three family members who knew about the biological relationships 3. Any old family documents I could find (even things like insurance policies where we were both listed) 4. A detailed timeline showing when my nephew came to live with me and all the support I provided 5. School enrollment forms where I was listed as guardian/family contact The key was overwhelming them with evidence rather than trying to find one perfect document. I also wrote a very detailed cover letter explaining the whole situation chronologically - adoption, family circumstances, why I became the caregiver, etc. It took about 3 months to get approved after I submitted everything, but they did accept it. The DNA test was probably the strongest piece of evidence, but I think having multiple supporting documents made the difference. Also seconding the Taxpayer Advocate Service recommendation - they were much more helpful than regular IRS agents in understanding these non-traditional family situations.

Has anyone had the IRS actually correctly process Form 8960 for 2022 yet? I'm still waiting on my refund and have the same issue - filed with investment income tax but my transcript is showing they're not calculating it correctly.

I'm dealing with almost the exact same situation! Filed my 2022 return in February with Form 8960, and my transcript is showing the same weird discrepancies - negative investment income on their end while I reported positive amounts, and their system calculating zero NIIT when I clearly owe it. What's frustrating is that I've filed Form 8960 successfully for the past three years without any issues. This definitely seems to be a systematic problem with how the IRS updated their 2022 processing rules. I also have the code 570 on my transcript dated March 15th. Based on what others are saying here, it sounds like we just need to wait for manual review to fix their computer errors. I'm keeping detailed screenshots of everything in case they send the wrong refund amount and try to collect it back later. Has anyone gotten any timeline estimates from IRS representatives about when these Form 8960 reviews might be completed?