Be careful about state residency too!! The Substantial Presence Test is for federal taxes, but states have their own rules for residency. Some states are super aggressive about claiming you as a resident if you spend a certain number of days there. For example, NY considers you a resident if you maintain a permanent place of abode and spend 183 days or more in the state. California is even worse - they'll try to claim you're a resident based on much less. State taxes can be a huge additional burden depending on where you live.

This is such a common situation that catches people off guard! I went through the exact same transition two years ago and it was overwhelming at first. One thing I'd add to the great advice already given - make sure you understand the timing of when you need to start making estimated quarterly tax payments. Once you're a tax resident, you're subject to the same pay-as-you-go requirements as US citizens. If your employer is still withholding at nonresident rates, you might end up owing a significant amount at year-end and potentially face underpayment penalties. I'd recommend calculating your expected tax liability early in the year and either asking your employer to increase withholding or starting to make quarterly estimated payments. The IRS doesn't care that this is your first year as a resident - they expect you to figure it out! Also, start gathering all your foreign account statements now. The FBAR filing deadline is different from your tax return deadline (October 15th with automatic extension vs. April 15th), and the penalties for not filing or filing incorrectly can be severe. Better to be over-prepared than scrambling at deadline time.

Your tax preparer might have checked the wrong box for marketplace coverage. Happened to me last year ngl

Have you tried checking your credit reports? Sometimes identity theft can cause erroneous 1095-A forms to be filed under your SSN. Also, for the dependent SSN issue - make sure you're using the exact format the IRS has on file. Even extra spaces or hyphens can cause rejections. You might want to call the Taxpayer Advocate Service at 877-777-4778 if the regular IRS lines aren't helpful.

the whole system is broken fr fr. took me 6 tries last year to get it right smh

make sure ur using the ORIGINAL 1095-A they sent. sometimes they send corrected ones and ppl dont notice

One thing to consider that I haven't seen mentioned yet - the IRS has been dealing with massive backlogs and staffing shortages since COVID. While getting your case back from CBE Group might give you access to better resolution options, it could also mean your case sits in limbo for months before anyone actually works on it. I had a similar situation with about $60k in back taxes. When I requested my case back from the collection agency, it took nearly 6 months before the IRS actually assigned someone to work on it. During that time, interest and penalties kept accruing. The upside was that once they did assign someone, I was able to get into a partial payment installment agreement that the collection agency couldn't offer. My advice would be to have a clear plan for what type of resolution you're seeking before requesting the transfer. If you just want a basic payment plan, the collection agency might actually move faster. But if you need hardship consideration, Currently Not Collectible status, or want to explore an Offer in Compromise, then definitely get it back to the IRS despite the potential delays.

I've been through this exact situation with $62k in tax debt that went to CBE Group. Here's my take after dealing with both sides: The main advantage of getting it back to the IRS is access to programs like Currently Not Collectible status if you're facing genuine financial hardship. CBE Group literally cannot put your account into CNC status - they can only offer payment plans or temporary delays. However, timing matters. If you're ready to move quickly on an Offer in Compromise or have all your financial documentation ready for a hardship determination, then request the transfer immediately. But if you're still getting your finances organized, the collection agency might actually buy you time since they tend to be less aggressive than IRS revenue officers. One tip that helped me: when you request the transfer back to the IRS, include a brief statement about what type of resolution you're seeking (installment agreement, OIC, hardship status, etc.). This can help prioritize how your case gets assigned once it's back with them. The whole process took about 8 weeks for me, but I ended up qualifying for a partial payment installment agreement that reduced my monthly payment by almost half compared to what CBE was demanding.

Does anyone know if capital loss carryovers expire? I have losses from 2008 that I've been carrying forward for years (had a really bad time in the market crash). Am I supposed to use them by a certain date?

This is exactly the kind of situation where perfect shouldn't be the enemy of good! As others have mentioned, a $50 error that doesn't change your tax liability is really minor in the grand scheme of things. I'd recommend keeping detailed records of what you discovered and when you discovered it. Write down the correct numbers and file them with your tax documents. Then when you do your 2023 return, just use the correct carryover amount (including that extra $50 loss). One thing I haven't seen mentioned yet - if you're using tax software for 2023, many programs will actually ask you to verify your capital loss carryover amount and may even flag if the number seems inconsistent with what they expect. This gives you a perfect opportunity to enter the correct amount with documentation of why it differs from your 2022 filing. The IRS really does focus on material errors that affect tax liability. A $50 capital loss correction when you were already at the $3000 limit just isn't going to be on their radar. Save yourself the headache of an amended return and handle it going forward - you'll sleep just fine!