Omg I didn't even think about the education credits! I did claim the American Opportunity Credit in 2022. So you're saying the $600 reduction in Box 4 might actually reduce my eligible expenses for the credit calculation? That seems like it could be a much bigger impact than just the scholarship income reporting.

Yes, that's exactly right. The AOTC gives you a credit of 100% of the first $2,000 in qualified expenses, and 25% of the next $2,000. So depending on your original expenses, a $600 reduction could change your credit by anywhere from $150 to $600. For example, if you originally had $4,000 in expenses, you would have qualified for the full $2,500 AOTC. But if that's reduced to $3,400, your credit would drop to $2,350 ($2,000 + 25% of $1,400). That's a $150 difference which would definitely warrant amending your return.

Yeah my school didn't even fill out those boxes properly! Had to call five different offices before someone could explain why they reported everything the way they did. The financial aid office kept transferring me to the bursar who transferred me to accounting who had no idea what I was talking about 🤦‍♀️

Does VITA help with W8-BEN forms though? I thought they only helped with actual tax returns, not bank forms.

VITA programs can vary by location, but many university-based VITA sites do assist international students with W8-BEN forms since it's such a common question. You're right that their primary purpose is helping with tax returns, but most VITA volunteers at universities are trained on the basic international student forms too. It's definitely worth checking with your specific university's VITA program to see what they cover. Even if they don't directly help with the W8-BEN form, they might be able to point you to resources that can help. They're generally much more knowledgeable about these issues than the front desk staff at international student offices.

Good advice about keeping copies! My roommate had issues because he submitted the form to his bank but then couldn't remember some of what he put when another organization asked for the same form later.

Do they look at your assets too or just income? I have some money in savings that I really don't want to touch because it's for emergencies, but I'm worried they'll make me use that to pay down the tax debt instead of continuing on a payment plan.

They look at both income and assets. The IRS uses standard financial guidelines to determine what they consider necessary living expenses versus disposable income. They typically expect you to use liquid assets (like savings) that exceed their allowable emergency fund threshold to pay down your tax debt. That said, they generally allow you to keep some reasonable emergency savings - but their definition of "reasonable" might differ from yours. If your total debt exceeds $25,000, preparing a detailed financial statement using Form 433-F before calling can help you understand where you stand.

Adding a new tax year doesn't reset the collection statute for the original tax debt. Each tax year has its own 10-year collection statute expiration date (CSED). Your 2022 taxes will still expire 10 years from when they were assessed, and your 2023 taxes will have their own 10-year period. However, certain actions like submitting an Offer in Compromise or leaving the country for an extended period can pause the clock. Simply modifying an installment agreement to add a new tax year won't extend the original CSED.

That's a really good point I hadn't considered. I was so focused on the federal tax bill that I didn't even think about how it might have affected state taxes or potential credits I could have qualified for. Do you know if there's a simple way to figure out what credits I might have been eligible for at my actual income level?

For a quick estimate, you can use one of the free tax calculators online - just input your correct income and basic situation for that tax year. The IRS's EITC Assistant can tell you if you would have qualified for the Earned Income Credit, which is often significant for lower/moderate income workers. When you file your amended return (Form 1040-X), your tax professional or software should automatically recalculate your eligibility for all credits and deductions based on your corrected income. Make sure to check for the American Opportunity Credit or Lifetime Learning Credit if you had education expenses, and the Child Tax Credit if you have dependents. These can make a huge difference.

What about requesting your wage and income transcript from the IRS? Wouldn't that show everything that was reported under your SSN for that year? Might help identify if there are other reporting problems too.

Thank you for this explanation! I just checked and my allowance is definitely being added as taxable income on my paystub. So it sounds like I could decline that taxable allowance and instead put the equivalent amount into the TRA pre-tax? Would I need to specifically tell HR I'm declining the allowance, or just sign up for the TRA?

You're exactly right - if it's currently being added as taxable income, you can decline that and instead direct those funds to the TRA pre-tax, which would save you money. You would need to specifically notify HR that you want to decline the taxable parking allowance and instead enroll in the TRA benefit. Make sure to confirm with your benefits administrator that this is allowed under your specific plan rules, as some employers have unique policies. Also verify the exact process for declining the allowance - some companies require a specific form or election during open enrollment, while others might need a simple email to HR.

Could you explain this a bit more? I'm not sure I understand how the Social Security wage base would affect the TRA benefits.