Be careful with FPHCI! I completely missed reporting some foreign dividend income a few years ago because I didn't understand these rules. Ended up with penalties and had to file amended returns. Make sure you're tracking ALL passive income from any foreign corps where you have significant ownership.

Another thing to keep in mind is that FPHCI rules can interact with PFIC (Passive Foreign Investment Company) rules in complicated ways. If your foreign corporation qualifies as both a CFC (triggering FPHCI rules) and a PFIC, you generally apply the CFC rules instead of PFIC rules - but this can vary based on your ownership percentage and other factors. Also, don't forget about the potential impact of GILTI (Global Intangible Low-Taxed Income) rules if you're dealing with post-2017 tax years. Some income that might have been treated as FPHCI under the old rules now falls under GILTI instead, which has different calculation methods and tax rates. I'd strongly recommend working with a tax professional who specializes in international taxation if you're dealing with significant foreign investments. The interaction between all these different regimes (FPHCI, PFIC, GILTI, etc.) can get extremely complex very quickly.

22 Has anyone tried just getting a wage and income transcript directly from the IRS? Sometimes they have your income info from other sources even if the W-2 wasn't properly filed.

This is unfortunately becoming more common with larger employers. I had a similar situation with a retail chain a few years back. Here's what worked for me: 1. **Document everything** - Keep records of all your paystubs, any communication attempts with Walgreens, and when you contacted the IRS. This creates a paper trail. 2. **Try multiple channels with Walgreens** - Don't just call HR. Try emailing their corporate payroll department, and if that doesn't work, reach out through their corporate website contact form. Sometimes different departments are more responsive. 3. **Set a deadline** - Give Walgreens a reasonable timeframe (like 10 business days) to provide your W-2, then move to the next step if they don't respond. 4. **File Form SS-8** with the Social Security Administration if you believe you were misclassified as an independent contractor instead of an employee. This sometimes happens with employers trying to avoid their tax obligations. The key is being persistent but methodical. Large corporations like Walgreens have procedures for this, but sometimes you need to escalate to get someone who actually knows what they're doing. Don't let them brush you off with "we'll look into it" - ask for specific timelines and follow-up dates. Your refund will definitely be delayed, but the IRS understands this isn't your fault. Stay on top of it and you'll get it resolved!

i recived the 507 code around this time two months ago. got notice in mail saying they needed to verify my employment info (i switched jobs midyear). sent in the requested docs and refund came exactly 43 days later. so it was about 75 days total from code to refund.

I'm going through this exact same thing right now! Got my 507 code about 2 weeks ago with a March 12th notice date. Reading through everyone's experiences here is both reassuring and terrifying at the same time - at least I know I'm not alone in this mess, but the wait times are brutal. It sounds like most people are looking at 60-90 days realistically, which is rough when you're counting on that money. I'm definitely going to try calling once I get my notice, and if that doesn't work maybe look into some of these services people mentioned. Thanks everyone for sharing your timelines - it helps to have realistic expectations even if they suck!

I'm going to disagree with most people here and suggest consulting a tax professional for at least your first year as homeowners. Yes, TurboTax can handle basic mortgage deductions, but there are strategic decisions that could save you thousands. For example, unmarried couples have flexibility in how they allocate property tax and mortgage interest that married couples don't. A tax pro might suggest structures that maximize deductions based on your individual tax situations. They can also help with things like home office deductions if applicable.

I'd recommend going with a tax professional for your first year as homeowners, especially given your income level and unmarried status. While TurboTax can technically handle the basic deductions, there are some strategic considerations that could save you significant money. At $270k combined income, you're likely in higher tax brackets where proper allocation of deductions matters more. A good CPA can help you optimize which partner claims what percentage of mortgage interest and property taxes based on your individual tax situations. They can also advise on timing strategies - like whether to bunch certain deductions in one year vs. spreading them out. The cost of a tax professional (usually $300-600) is often recovered through the additional deductions and strategies they identify. You can always go back to TurboTax in future years once you understand the optimal structure for your situation. Think of it as an investment in getting your homeowner tax strategy right from the start.

Has anyone used TurboTax for this situation? I have the same 1099-R code 1B issue and wondering if TurboTax handles this exception correctly or if I need to override something.

I just went through this exact situation with my 2024 tax return! I had a 1099-R with code 1B for about $8,000 that I withdrew early from my 401k. Like you, I was confused about whether I needed to file Form 5329 separately. After researching and double-checking with the IRS instructions, I can confirm that code 1B is indeed treated the same as code 1 for the Schedule 2 line 8 exception. Since you already had the 10% penalty withheld when you took the distribution, you can simply report it on your 1040 and use the exception to avoid filing the separate 5329 form. The key is making sure your tax software correctly identifies that the penalty was already withheld and applies the exception. Most major tax software should handle this automatically when you enter the 1099-R information, but it's worth double-checking that Schedule 2 line 8 shows the correct penalty amount. One tip: keep good records of your 1099-R and any documentation about the penalty withholding, just in case the IRS has questions later. But you should be all set without the extra paperwork!