Just wanted to add some reassurance from personal experience - I had a similar situation last year with about $4,500 in back taxes when I needed to renew my passport for a work trip. I was panicking thinking they'd deny my application, but it went through without any issues at all. The key thing is that $59,000 threshold everyone mentioned is absolutely correct. The IRS has to formally certify your debt as "seriously delinquent" before the State Department will deny passport services, and they only do that for much larger amounts. One tip though - if you're still worried about the accuracy of your balance, you can request a tax account transcript online through the IRS website. It's usually more up-to-date than the regular balance inquiry and will show all payments they've received, even if they haven't posted to your main account yet. That might give you peace of mind before deciding whether to pay the full amount. Your passport application should be fine, but definitely get it submitted soon given the processing delays everyone's experiencing!

I can definitely relate to the stress you're feeling! I went through something similar a couple years back when I owed about $2,800 to the IRS and needed to renew my passport for a family emergency overseas. Like others have mentioned, the $59,000 threshold is accurate - your $3k debt won't affect your passport application at all. But I wanted to share what worked for me regarding those payment delays you're seeing. When my payments weren't showing up online either, I called the IRS automated payment line (1-888-353-4537) instead of trying to reach a live person. You just need your SSN and the payment confirmation numbers. It was able to confirm my payments had been received even though they weren't reflected in the online account yet. Much faster than waiting on hold for hours! Also, don't stress too much about getting the exact balance perfect before making a payment. If you end up overpaying slightly, the IRS will either apply it to future tax years or send you a refund. It's better to have peace of mind and get your taxes current than to keep worrying about a few dollars here or there. Good luck with your passport application - you should be totally fine!

Has anyone ever successfully disputed one of these offsets? I had a similar situation last year where they took my entire refund for a tax debt I was sure I'd already paid. I ended up finding proof of payment and had to go through this whole process to get my money back.

I'm sorry you're going through this stress - the uncertainty is definitely the worst part! Based on what others have shared here, it sounds like you have several good options to get answers quickly rather than waiting weeks for the official notice. That Treasury Offset Program number (800-304-3107) seems like your best first step since it's automated and will tell you immediately what agency took your refund and for how much. At least then you'll know if it's actually IRS debt or something else like student loans or state taxes. If it does turn out to be related to that 2022 payment plan you mentioned, don't panic - even if you missed a payment or there was some administrative mix-up, these things can usually be resolved. The important thing is getting the full picture of what happened so you can take the right next steps. Keep us posted on what you find out! This community has been really helpful for people in similar situations.

I ran into this exact issue last year! Schwab didn't report some of my smaller distributions on the 1099-DIV, and when I called them, they said distributions under $10 don't need to be reported on the form according to IRS rules. Is your distribution possibly split across multiple small payments that individually fall below reporting thresholds?

This is a great question that many new investors face! Based on what you've described, it sounds like you've discovered the distribution in your Schwab Tax Center was classified as "return of capital," which explains why it didn't appear on your 1099-DIV. Here's the key takeaway: return of capital distributions are NOT taxable income in the year you receive them, so you don't need to report that $175 as dividend income on your current tax return. However, you do need to track it because it reduces your cost basis in the ETF. Think of it this way - the ETF is essentially returning part of your original investment to you, rather than paying you profits (which would be taxable dividends). When you eventually sell the ETF, you'll calculate your capital gain or loss using the reduced cost basis. Since this is only your second year investing, I'd recommend keeping a simple spreadsheet to track these adjustments. Most brokerages like Schwab will automatically adjust your cost basis in their systems, but having your own records is always helpful. You're being very responsible by double-checking everything - that attention to detail will serve you well as your investment portfolio grows!

Has anyone here actually filed with a mix of 1042-S and 1099 forms from different brokers? I'm in the same boat and I'm afraid it might trigger an audit! I'm using TurboTax and it doesn't seem to handle this situation well.

I've been through this exact situation! As an F1 student, you should generally be receiving 1042-S forms from all brokers, not 1099s. The difference comes down to how each broker classified your tax status when you opened your accounts. When you opened your Robinhood account, you likely filled out a W-9 form (or they incorrectly assumed you were a U.S. person), which is why they issued a 1099. With TDAmeritrade, you probably completed a W-8BEN form declaring your foreign status, which is why they correctly issued a 1042-S. For your tax filing, you should report the information exactly as provided on each form. The 1042-S doesn't itemize individual transactions because it's focused on reporting income subject to withholding (like dividends) rather than capital gains. However, you're still required to report all your capital gains and losses on Schedule D and Form 8949, even if they're not detailed on the 1042-S. You'll need to manually track your TDAmeritrade trades using their transaction history in your online account. It's tedious with 60+ trades, but necessary for proper reporting. I'd also recommend contacting Robinhood to update your tax classification for future years so you receive consistent forms from all brokers.

Pro tip: if u get on an income based repayment plan BEFORE filing taxes they usually won't offset. Worked for me last year!

Been through this nightmare myself last year. Yes, DOE offsets are definitely happening in 2024 - they resumed in October 2023 after the COVID pause ended. I had my entire refund taken except for the refundable portions like CTC and EITC. The key is to act FAST if you want to avoid it. Call the Federal Student Aid contact center at 1-800-621-3115 immediately to discuss rehabilitation or consolidation options. Even if you're already in the offset process, getting into a payment plan can sometimes stop future offsets. Don't wait - tax season moves quick and once that refund is gone, it's gone!