Does anyone know if taking classes online during covid from my home country affects my exempt period? I was physically outside the US for about 18 months during 2020-2021 even though I maintained my F1 status by taking online classes. Do those periods still count toward my 5 exempt years?

This is such a common source of confusion for F1 students! I went through the exact same situation a few years ago. Here's what I learned that might help: Since you've been here for 6 years on F1 status (starting 2019), you're definitely past the 5-year exempt period. This means for 2024 and going forward, all your days of physical presence in the US count toward the substantial presence test. One thing to keep in mind - even though you're now counting days normally, make sure you're calculating the substantial presence test correctly. It's not just adding up all your days - it's: (all days in current year) + (1/3 of days in prior year) + (1/6 of days in year before that) = must be 183 or more. Also, since this sounds like it might be your first year transitioning from exempt to non-exempt status, you'll likely need to file as a "dual-status alien" - meaning nonresident for part of the year and resident for part of the year. This requires some special forms and calculations. Don't stress too much about "getting in trouble" - the IRS understands these situations are complex for international students. The key is filing correctly based on your actual status, and if you're unsure, it's always worth consulting with a tax professional who specializes in international student taxes or getting clarification directly from the IRS.

Great question! You've got the basics right - you can avoid the 10% penalty on the portion used for qualified education expenses, but you'll still owe regular income tax on the entire withdrawal amount. One important thing to keep in mind is timing. Make sure you're taking the distribution in the same tax year that you're paying the qualified education expenses. The IRS wants to see that connection between the withdrawal and the actual educational costs. Also, keep detailed records of everything! Save all receipts for tuition, required fees, books, supplies, and any required equipment. If your daughter is enrolled at least half-time, room and board expenses can qualify too, but they're limited to the school's published room and board costs. The penalty exception only applies to the amount of qualified expenses you actually pay, so in your example, yes - $7,500 would be penalty-free and $4,500 would still get hit with the 10% penalty. And don't forget you'll need to file Form 5329 with your tax return to properly claim the education exception, even though most tax software should guide you through this.

Just to add another perspective - I went through this exact situation two years ago when my daughter started her master's program. One thing that caught me off guard was that the IRS is pretty strict about what constitutes "qualified" expenses, and it's not always intuitive. For example, I assumed her student activity fees would qualify since they were mandatory, but it turns out those don't count as qualified education expenses for the IRA withdrawal exception. Same thing with health insurance that the school required - not qualified. But her thesis binding and printing costs did qualify as required supplies, which surprised me. The key is really in the details. Keep every single receipt and make sure you can demonstrate that each expense was truly required for enrollment or attendance. I ended up creating a spreadsheet tracking each expense with notes about why it qualified, which my tax preparer said was exactly what she'd recommend for audit protection. One more tip: if you're unsure about a specific expense, err on the conservative side. It's better to pay the 10% penalty on a small questionable amount than to claim an exemption you're not entitled to and face potential audit issues later.

This discussion has been incredibly helpful for understanding how online sales tax works! I recently had a similar experience ordering a washer and dryer set while visiting my brother in Alaska (no state sales tax) but having it delivered to my home in Florida. I was charged Florida's 6% sales tax and initially thought it was an error. After reading everyone's explanations about destination-based sourcing and the Wayfair decision, I completely understand why the system works this way. It makes perfect sense that Florida gets the tax revenue since that's where I'll be using the appliances and where the delivery infrastructure is being utilized. What really surprised me was learning about use tax obligations - I had no idea that if you buy something in a no-tax state and transport it home yourself, you're still supposed to pay your home state's tax rate on your return. That seems like such an obscure requirement that most people would never know about or remember to do. Having retailers automatically collect based on delivery address definitely seems much simpler and more transparent. Thanks to everyone who shared their experiences and the tax professional who explained how this levels the playing field for local businesses. It really helps to understand the reasoning behind these rules!

This has been such an educational thread! I'm dealing with a very similar situation right now - I ordered some home gym equipment while visiting family in Delaware (no sales tax) but had it shipped to my apartment in Virginia. Based on all the explanations here about destination-based sourcing, I should expect to pay Virginia's sales tax when it arrives. What really opened my eyes was learning about the use tax requirement that would apply even if I had bought the equipment in Delaware and hauled it back in a truck myself. I honestly had no clue that you're legally supposed to report and pay your home state's tax rate in those situations - that seems like something 99% of people would never know about or remember to do on their tax returns. The explanation about supporting the infrastructure in the state where you actually live and use your purchases really makes sense. Virginia will handle the delivery logistics, provide consumer protections if there are any issues, and I'll be using their roads and services while using the equipment. It's actually kind of nice that retailers now handle this automatically rather than leaving it up to consumers to figure out complex use tax obligations. Thanks to everyone who shared their real experiences - it's so much more helpful learning from people who've actually been through this than trying to interpret confusing tax code on government websites!

I'm in the same boat as the original poster - still waiting for my CP01A notice and getting nervous about filing deadlines. Based on what everyone's sharing here, it sounds like the online retrieval option through the IRS website might be my best bet rather than waiting for the mail. Has anyone had issues with the online IP PIN tool not working properly? I'm worried about getting locked out of my IRS account if I make too many verification attempts. Also, for those who successfully used it - do you remember roughly how long the whole verification process took once you got logged in? Thanks for all the helpful info in this thread! It's reassuring to know I'm not the only one dealing with this timing stress.

I just wanted to share my experience since I was in a similar situation last month. I ended up getting my IP PIN through the IRS online portal after waiting three weeks for the CP01A notice that never came. The verification process was actually easier than I expected - took about 15 minutes and I had my PIN immediately. One thing I learned is that if you've moved recently or had any address changes, that can delay or prevent delivery of the CP01A notice. The IRS might still have your old address on file even if you filed a change of address form. In my case, I had moved six months ago and apparently the notice went to my previous apartment. For anyone still waiting, I'd definitely recommend trying the online option first before calling. The "Get an IP PIN" tool on the IRS website worked perfectly for me, and I was able to file my return the same day. Just make sure you have a recent credit card or loan statement handy for the identity verification step.

Coming from a country without property taxes, I completely understand your shock! It's definitely a system that takes some getting used to. One thing that helped me when I first moved here was learning that property taxes aren't just a burden - they fund essential local services like schools, fire departments, police, and road maintenance that directly benefit homeowners. For retirement planning, I'd suggest looking into your state's specific programs early. Many states have "homestead exemptions" that reduce the taxable value of your primary residence, and some offer additional benefits that increase with age. Also consider that Social Security benefits and many retirement accounts are specifically designed to provide steady income throughout retirement years. If you're planning to stay in your current area long-term, it might be worth reaching out to your local tax assessor's office now to understand what senior programs will be available to you when you retire. This can help you plan your retirement savings more accurately. Some people also factor property taxes into their decision about whether to pay off their mortgage early or downsize before retirement. The key is starting to research and plan now rather than being surprised later!

As someone who recently went through this process with my grandmother, I wanted to share a few additional considerations that might help with your planning. One thing that surprised me was learning about property tax payment plans. Many counties allow seniors to pay their property taxes in monthly installments rather than lump sums, which can make budgeting much easier on fixed incomes. My grandmother's county lets her spread her annual $2,400 property tax bill across 12 monthly payments of $200, which fits much better into her Social Security budget. Also, if you're still in the planning phase, consider the long-term property tax trends in your area. Some rapidly growing areas might see significant tax increases over time, while more established neighborhoods tend to have more predictable tax growth. This can really impact your retirement planning calculations. One last tip - keep excellent records of any home improvements or modifications you make, especially accessibility improvements like ramps or bathroom modifications. Many states allow these to be deducted from your home's assessed value, and some even offer special exemptions for disability-related home improvements that can significantly reduce property taxes for seniors who need them. The system definitely has a learning curve, but there are more safety nets for seniors than it initially appears!