One more thing to consider - if you're filing the W7 because you're not eligible for a SSN, make absolutely sure that's correct. I spent months going through the W7 process only to find out later I was actually eligible for a SSN, which would have been much easier to get and use long-term. Worth double-checking with Social Security before going down the ITIN path!

Great advice in this thread! I went through the W7 process two years ago and can confirm that order absolutely matters. Here's what worked for me: 1. W7 form on top (as mentioned) 2. Supporting identity documents attached to the W7 3. Tax return (1040) underneath everything 4. Any schedules or additional forms at the bottom One thing I didn't see mentioned - if you're married filing jointly and both spouses need ITINs, you'll need separate W7 forms for each person, but you can submit them together with one tax return. Just make sure each W7 has its own set of supporting documents. Also, pro tip: write "ITIN APPLICATION" in large letters on the outside of your envelope. It helps ensure your package gets routed to the right department at the IRS processing center. My accountant recommended this and I think it helped my application move through faster. Good luck with your application! The wait is frustrating but once you get your ITIN, future tax filings become much smoother.

Just checked and it's working for me now (4:30pm Eastern). Try again, they might have fixed whatever was causing the outage.

Glad to hear it's working again! For future reference, the IRS also has a "Where's My Refund" tool that sometimes works even when other parts of the site are having issues. You can also call their automated refund hotline at 1-800-829-1954 if the website is down - it's available 24/7 and usually more reliable than the web interface during peak times.

Don't forget about potential credits for taxes paid! When dealing with territorial income like this, you need to make sure you're not being double-taxed. If your clients paid any tax to Guam on their W-2GU income, they may be eligible for a foreign tax credit on their US return using Form 1116. I went through this with income from Puerto Rico last year. Even though Puerto Rico is a US territory, for tax purposes it's treated as a foreign jurisdiction in many ways. The same applies to Guam. Also, check whether there's any special treatment for moving expenses between a territory and the mainland. There used to be some deductions available for these situations that survived the 2018 tax law changes, but only for moves involving territories.

One important detail I don't see mentioned yet - when you're dealing with W-2GU forms, make sure to check if the employer properly allocated the income between Guam-source and US-source on the forms themselves. Sometimes employers in the territories don't correctly distinguish between income that's truly territorial versus income that should be reported as US-source (like for federal contracts or mainland-based work done while stationed in Guam). Also, since they only have Copy A available for one of the W-2GU forms, they should contact the employer to request the proper copies for filing. The IRS is pretty strict about having the correct document copies attached to paper returns, especially for territorial income situations that are already under closer scrutiny. Another tip: when you complete Form 5074, pay close attention to the income allocation dates. Since they moved mid-year (June 2023), you'll need to clearly document which income was earned during their Guam residency period versus their Nevada residency period. This timing can significantly impact the tax allocation between jurisdictions.

Have you checked if Form 8812 (Additional Child Tax Credit) was included with your return? That's the form that lets you get the refundable portion of the credit back even if your tax liability is lower than the full $2,000. Also, make sure they haven't confused the Child Tax Credit ($2,000) with the Credit for Other Dependents ($500). That happens sometimes when preparers aren't paying attention or if there's confusion about whether the child has a valid SSN.

I had a December baby too and my preparer initially only gave me $500. When I questioned it, she realized she had checked the wrong box in the software that indicated my child didn't have an SSN! Double-check that your preparer entered your child's SSN correctly and selected that they lived with you for more than half the year (yes, even December babies count as living with you for the full year for tax purposes).

Just want to add that this same thing happened to me with my grandmother's estate K-1. The big number in Box 11D is likely capital gains from property or investments the estate sold, and if the estate already paid taxes on it, it shows up on your K-1 but doesn't necessarily increase your tax burden. One thing to watch out for - depending on your state, you might need to make adjustments on your state tax return. My state wanted me to add back some of the estate income that was excluded from federal taxable income. Check your state's rules for K-1 income from estates.

Has anyone run into issues with the IRS questioning large swings in refund amounts due to estate K-1s? I'm in a similar situation with my uncle's estate K-1 and I'm worried about audit risk. My tax preparer says it's fine but I'm still nervous.