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This happened to me and it turned out the partnership had made a mistake. They checked box 16 on everyone's K-1 but there were actually no foreign transactions that year! They sent a corrected K-1 after I called them. Might be worth checking if this was just a clerical error.
I went through this exact same nightmare last year! After weeks of back-and-forth with the partnership and getting nowhere, I discovered that many partnerships are still figuring out the K-3 requirements themselves since they're relatively new. Here's what worked for me: I contacted the partnership in writing (email with read receipt) requesting the K-3 and kept a copy of that request. When I still didn't receive it after 30 days, my tax preparer filed my return with a statement attached explaining that I had requested but not received the K-3 form despite the checked box 16. The IRS actually has guidance allowing this approach when partnerships fail to provide required supplemental information. The key is documenting your reasonable efforts to obtain the form. Don't let a missing K-3 prevent you from filing on time - you can always amend later if needed once you get the information. But definitely don't just ignore a checked box 16 without taking some action!
This is really helpful advice! I'm dealing with a similar situation and hadn't thought about documenting my requests in writing. Quick question - when you attached the statement to your return explaining the missing K-3, did you file it as a separate document or include it somewhere specific on the forms? I want to make sure I do this correctly if I end up in the same boat.
Does anyone know if the HSA contribution limits are different if you have a family plan vs individual? I think I might have over-contributed this year and am worried about penalties.
This is such a common confusion point! I went through the exact same thing last year. The key thing to remember is that "Contributions Through an Employer" refers to the METHOD of contribution, not WHO contributed the money. So Carmen, in your case, you'd report the full $4,550 ($3,650 + $900) under "Contributions Through an Employer" because both amounts went through your employer's payroll system. Your $3,650 was deducted pre-tax from your paychecks, and your employer's $900 contribution also went through their system. You should NOT report your $3,650 anywhere else on the form - that would be double counting. Your W-2 should show the total HSA contributions in Box 12 with code "W" which would be that same $4,550. The IRS distinguishes between employer-facilitated contributions (which are already tax-advantaged) and direct contributions you might make from your personal bank account after receiving your paycheck. Since all your contributions went through your employer, they all fall under the "Contributions Through an Employer" category.
Hot tip if you're e-filing in Texas and have license issues: when I e-filed with H&R Block software, they had a clear option to skip the drivers license step completely. Just clicked "I don't have this information" and completed my filing with no problems. My return was accepted within 48 hours and refund came through in about 10 days. No issues whatsoever, and Texas definitely doesn't need state tax info since we don't have state income tax.
Does this work with TurboTax too? I can't find that option and its making me enter something in that field.
TurboTax hides it a bit more but the option is there. Look for a small text link that says something like "I can't provide this information" or "I don't have a state ID". It's usually below the main form fields, not a prominent button. If you absolutely can't find it, you can also enter your expired license info - the system mainly wants the ID number which hasn't changed. TurboTax might give you a warning but it won't stop your federal return from being processed.
This question comes up every year! I'm a tax preparer in Texas and can confirm - use your expired license for e-filing federal returns. The number is what matters, not the expiration date. But honestly, best practice is to keep your license current anyway. You'll need a valid one for so many other things, and the renewals can often be done online now.
Do you know if there's a grace period for using expired licenses? Mine expired in 2023 but I haven't renewed yet. Will that be a problem?
For federal tax purposes, there's no specific "grace period" - the IRS system is mainly using your license number for identity verification, not checking expiration dates. A license that expired in 2023 should work fine for e-filing your federal return. However, you should definitely prioritize getting it renewed soon. An expired license from 2023 could cause issues with other government services, banking, employment verification, and even TSA if you need to fly. Most states allow online renewal even for licenses that have been expired for a while, though you might face late fees.
Why is everyone making this so complicated? Just fill out the damn form, it takes 5 mins. Put "Article XI - Interest" in section 10 of the W8-BEN (that's the part about the treaty benefits for interest income between US-Canada). Sign it, date it, send it back to your bank. Problem solved.
Just to add some clarity on the substantial presence test since it's been mentioned - you can actually file Form 8840 (Closer Connection Exception Statement) if you meet the substantial presence test but still maintain closer ties to Canada. This allows you to be treated as a Canadian resident for tax purposes even if you're physically present in the US for more than 183 days under the formula. You'd need to show that your tax home, family, personal belongings, social/political ties, etc. are still primarily in Canada. This form is due by June 15th of the year following the tax year in question. Also, regarding the W8-BEN, make sure you check the box in Part II claiming treaty benefits and specify "Canada" as the country. The form is valid for 3 years from the date you sign it, so you won't need to keep refiling it every year. One last tip - keep copies of everything you submit to your bank. If there are any issues later with withholding, you'll need documentation to show you properly claimed treaty benefits.
This is really helpful! I didn't know about Form 8840 - that could be a game changer for people in situations like mine. Quick question though: if you file the 8840 to claim closer connection to Canada, does that affect your ability to eventually get a green card or permanent residency in the US? I'm wondering if there could be immigration consequences to formally declaring that your ties are primarily to Canada.
Ravi Sharma
dont even bother calling tbh. system automatically converts failed direct deposits to paper checks. just gotta wait it out
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Romeo Barrett
Same thing happened to me with Cash App last year! The rejected deposit bounced back to IRS within about 5 business days, then got my paper check exactly 3 weeks later. Make sure your mailing address is current on file with them - you can check/update it on the IRS website. The waiting sucks but at least you'll definitely get your money šø
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