Don't forget about Form 8938 (Statement of Foreign Financial Assets) if your foreign financial accounts exceed certain thresholds! Made this mistake my first year with overseas rental property and got a nasty letter from the IRS.

One thing I haven't seen mentioned yet is the potential impact of tax treaties between the US and your home country. Many countries have tax treaties with the US that can affect how rental income is taxed and may provide additional benefits beyond just foreign tax credits. For example, some treaties allow you to elect to be taxed on rental income on a net basis (after deductions) rather than gross basis, which can be more favorable. Others might have specific provisions about depreciation calculations or timing differences. Also, keep in mind that if you're planning to sell the property eventually, you'll need to consider depreciation recapture rules. All that depreciation you're claiming now will be "recaptured" as ordinary income (up to 25% tax rate) when you sell, even if the sale itself qualifies for capital gains treatment. Given the complexity with foreign rental properties, passive activity rules, currency conversions, and multiple filing requirements, I'd strongly recommend consulting with a tax professional who specializes in international taxation before making the purchase. The upfront cost could save you significant headaches and potential penalties down the road.

I reached out to my congressman last tax season when my refund was stuck with those mysterious hold codes. It was like being stuck in traffic with no explanation - you can see you're not moving but have no idea why or how long it'll take! Their office was surprisingly helpful, like having a special pass to the express lane. They got me an answer within 10 days when I'd been waiting for 2 months on my own. Has your rep's office given you any timeline for when they might get back to you?

I'm dealing with the same frustrating situation right now! It's so stressful when you're counting on that money for essentials like medications. I haven't contacted my rep yet, but reading everyone's experiences here is really encouraging - it sounds like congressional inquiries actually get results much faster than going through normal IRS channels. The fact that they have a dedicated team for these inquiries makes sense. I think I'm going to follow your lead and reach out to my representative's office tomorrow. Hope you get answers soon and can get your meds refilled without any more delays!

I've been through this exact situation. Here's what happened: • Didn't report a W2 from a 2-week job in 2020 • Received CP2000 notice 14 months later • Had to pay original tax owed • Plus interest (which adds up faster than you think) • Plus accuracy-related penalty • Had to file Form 843 to request penalty abatement • Spent hours on phone with IRS • Stressed for months waiting for resolution My advice? Just include it now. The few minutes it takes will save you significant time, money, and stress later.

I appreciate everyone sharing their experiences here - it's really eye-opening as someone new to the US tax system. Based on what I'm reading, it sounds like the consensus is crystal clear: report everything, no matter how small. The automated matching system seems pretty sophisticated, and the penalties/interest/stress just aren't worth the risk. @NeonNebula, since you mentioned you're also new to the US, I'd suggest we both just bite the bullet and include all W2s. Better to spend a few extra minutes now than deal with CP2000 notices and penalty calculations later. The IRS already has our employer's records anyway, so we're not really "hiding" anything - just delaying the inevitable paperwork headache. Thanks everyone for the reality check! Sometimes the "easy" path ends up being the most complicated one.

Has anyone successfully disputed a 1099-C amount? I received one last month that seems way too high compared to what I actually borrowed.

This is such a common situation that catches people off guard! I went through something similar with my grandmother a few years back. One thing I'd strongly recommend is gathering all of your aunt's financial records from right before each debt cancellation date - bank statements, credit card statements, any other debts, and documentation of her assets (home value, car, etc.). The insolvency calculation can be tricky but it's often the key to avoiding a big tax bill. Since your aunt is 79 and on fixed income, there's a good chance her total debts exceeded her assets when the cancellations occurred. Don't forget to include things like medical bills, utility bills, or any other outstanding debts in the liability calculation. Also, definitely double-check those 1099-C amounts against your records. Debt settlement companies sometimes include their fees in the cancelled debt amount, but those fees weren't part of the original loan your aunt received, so they arguably shouldn't be taxable. It's worth questioning every dollar on those forms. Given the complexity and the potential tax savings, this might be worth consulting with a tax professional who has experience with 1099-C issues, especially if the insolvency calculation gets complicated.

One thing to consider that I learned the hard way - does your fiancée qualify for any income-based benefits? When my girlfriend claimed our daughter, it lowered her AGI enough that she could stay on her income-based health insurance, which saved us WAY more than the extra tax refund I would've gotten by claiming our daughter. Sometimes the best tax move isn't just about who gets the bigger refund, but about how it affects other benefits like healthcare subsidies, student loan payments, childcare assistance, etc. Just something to think about.

Just want to add something that might help - make sure whoever claims your son also considers whether they qualify for the Child and Dependent Care Credit if you're paying for daycare or childcare. This credit can only be claimed by the parent who claims the child as a dependent, and it can be worth up to $2,100 for one child. Also, don't forget about the Child Tax Credit - it's worth up to $2,000 per qualifying child and has income phase-outs. If one of you makes significantly more than the other, the lower-income parent might get more benefit from these credits. The tax software suggestions others mentioned are great, but also consider running a quick calculation on who would benefit more from Head of Household status combined with these child-related credits. One last tip - if your fiancée does end up owing money because of the W-4 withholding situation, she can adjust her W-4 for next year to avoid the same problem, or you could coordinate your withholdings better as a couple to optimize your cash flow throughout the year.