I went through this exact same situation last year when I moved to the UK! The IRS "modified" my Recovery Rebate Credit because they had records showing my 2020 stimulus was sent to my old US address, but it was returned to them as undeliverable since I had already moved. The key thing to understand is that when they say "modified," they're usually reducing or eliminating the credit because they believe you already received the payment. In your case, since you got the 2021 payment fine at your Germany address but not the 2020 one, it's likely the 2020 payment went to your previous US address. Here's what worked for me: I filed Form 3911 (Request for Copy of Tax Return) to initiate a payment trace. Even though you're international, you can still mail this form to the IRS. Make sure to include both your old US address and current German address, and explain that you moved abroad before receiving the payment. The whole process took about 6 months, but I eventually got my full $1800. The IRS confirmed that my original payment was returned to them undelivered, so they reissued it to my international address. Don't give up - you're definitely entitled to that money if you were eligible and never received it!

I'm dealing with a very similar situation and this thread has been incredibly helpful! I moved to Canada in 2020 and never received my first stimulus payment, but got the second one fine. The IRS "modified" my Recovery Rebate Credit with the same cryptic language that everyone's describing. After reading through all these responses, I'm definitely going to try the Form 3911 route that several people mentioned. It sounds like the most straightforward approach for international situations where the payment likely went to an old US address. One thing I wanted to add for anyone else in this situation - I found that keeping detailed records of when you moved, your address change timeline, and any correspondence with the IRS is really important. The IRS seems to have trouble tracking payments across address changes, especially international ones. Thanks to everyone who shared their experiences and solutions. It's reassuring to know this is a common issue with actual solutions, even if the process takes a while!

9 One thing nobody's mentioned - if you're going to zero out withholding, you NEED to be disciplined about saving that money. I did this exact thing a few years back, thought I'd just save the tax money myself, then ended up spending it. When April came around, I owed $22k that I didn't have, plus penalties. Had to get on an IRS payment plan which was a whole other headache.

21 One strategy I've used instead of zero withholding is to claim enough additional withholding allowances to significantly reduce withholding, but not eliminate it entirely. Then I make quarterly estimated payments to cover the difference and avoid penalties. Less extreme than zero withholding but still puts more money in your pocket throughout the year!

I'm an HR assistant at a restaurant chain, and this happens sometimes! The most common causes I see are: 1. Someone entered the W-4 information incorrectly into the payroll system 2. The employee inadvertently checked the "exempt" box on their W-4 3. The employee claimed a very high number of dependents or deductions 4. The new employee is making under the threshold where federal withholding kicks in With your income at $3,200/month, #4 definitely isn't your issue. Ask HR to pull your original W-4 form and check what's in their system against what you actually filled out.

I went through something very similar last year! The key thing is to act fast - the longer you wait, the bigger the potential tax bill becomes. Here's what I'd recommend doing immediately: 1. **Request a copy of your original W-4** from HR/payroll and compare it to what they have in their system 2. **Calculate roughly what you should owe** - at $38,400 annually, you're probably looking at around $2,000-3,000 in federal taxes for the full year 3. **Consider making an estimated tax payment** to the IRS for the months where nothing was withheld to avoid underpayment penalties When I had this issue, it turned out my employer had accidentally marked me as "exempt" in their payroll software even though I never claimed that on my W-4. Once they fixed it, I had them increase my withholding slightly for the rest of the year to help catch up. The good news is this is fixable! Just don't let it slide any longer. Also keep all documentation of when you reported the issue to your employer in case you need to show the IRS that you tried to correct it promptly.

Has anyone actually USED FreeTaxUSA's Audit Assist service during a real audit? All I'm seeing is theoretical discussion about what it offers, but I'd love to hear from someone with firsthand experience.

I actually went through a full IRS audit last year using FreeTaxUSA's Audit Assist, so I can give you real firsthand experience. I was audited for my 2022 return which included some business expenses that apparently raised red flags. The Audit Assist team was genuinely helpful throughout the process. They walked me through the initial audit letter line by line, helped me create a timeline for gathering documents, and even provided templates for organizing my receipts and records. When I had questions about what the IRS was asking for, they responded to emails usually within 24 hours. The limitation is exactly what others mentioned - they don't represent you directly. So when it came time for the actual meeting with the IRS agent, I was on my own. But they did help me prepare thoroughly, reviewed all my documentation beforehand, and gave me talking points for the meeting. In the end, the audit went smoothly and I only owed about $200 in additional taxes. Whether that was due to their preparation help or just luck, I can't say for sure, but I felt much more confident going into it than I would have on my own. For the price point, I think it's decent value, though if you're dealing with something really complex you might want to spring for actual representation.

Pro tip: check your transcripts early morning EST time, thats when they usually update. Source: been doin this for years

Don't panic! This is totally normal for returns filed at the end of January. The "Return Not Present" message doesn't mean your return was lost or rejected - it just means the IRS hasn't processed it into their system yet. During peak filing season (Jan-April), the IRS can take 3-4 weeks or even longer to process returns, especially with the volume they're dealing with right now. Your return is likely sitting in their processing queue. If you filed electronically, you should have received a confirmation email with an acknowledgment that it was successfully transmitted. That's your proof it made it to them. If you're really concerned, you can use the "Where's My Refund" tool on IRS.gov - it updates more frequently than transcripts and will show if there are any issues with your return. I'd give it another week before calling the IRS directly. Their phone lines are swamped right now and you'll probably just get told the same thing - to wait for processing to complete.