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Anyone know the best way to get a replacement social security card? Mine is so old and damaged I can barely read it, and I'm worried about getting my numbers mixed up when filling out forms.
Just adding that besides SSNs, there are other types of TINs too: - EIN (Employer Identification Number) for businesses - ITIN (Individual Taxpayer Identification Number) for non-citizens - PTIN (Preparer Tax Identification Number) for tax preparers - ATIN (Adoption Taxpayer Identification Number) for pending adoptions So while most people's TIN is just their SSN, not everyone's is!
This exact thing happened to me and my husband! It's SO frustrating how unclear the W-4 is. One thing nobody mentioned here yet - you can also just specify an additional dollar amount to withhold on line 4(c) of the W-4. For us, we calculated that we were underwithholding by about $400/month total, so we each put an extra $200 per month on line 4(c). So every paycheck (we get paid biweekly), we have an extra $92 withheld. You might want to also look at your state withholding forms too. We were underwithholding at both federal and state levels.
Thank you for this suggestion! Do you know if there's an easy way to calculate exactly how much extra we should withhold? I'm worried about overwithholding too much and giving the government an interest-free loan, but obviously don't want another tax bill shock.
The most straightforward way to calculate your additional withholding is to take the amount you owed this year ($3900), add any expected income increases for next year, and divide by the number of pay periods remaining in the year. For example, if you both get paid twice a month (24 pay periods per year), and you start in April with 18 pay periods remaining, you'd need approximately $217 additional withholding per pay period ($3900 รท 18). You could split this between your W-4s. If you're concerned about overwithholding, you can be a bit more conservative with the extra amount. Remember you can always submit a new W-4 partway through the year if you find you're still not withholding enough.
Everyone is making this more complicated than it needs to be. Just go back to withholding at the Single rate. That's what my wife and I do. We both select "Married but withhold at higher Single rate" and we get a small refund every year. The "Married" withholding rate assumes your spouse doesn't work or makes very little. So when both spouses work and make similar amounts, you're going to drastically underwithhold if you both select just "Married.
This is the correct answer! My wife and I both make around $100k and we've always used "Married but withhold at higher Single rate" without any issues. The regular "Married" option only works if one spouse doesn't work or makes significantly less.
One thing to consider is the timing of when you sell or transfer. If you sell in December 2025, you'll owe taxes by April 2026. If you sell in January 2026, you'd push the tax payment to April 2027. Might help with cash flow if you need time to adjust to US taxes. Also, don't forget currency exchange rates factor into your capital gains calculations. The IRS wants everything reported in USD, so if the euro has moved significantly since you purchased the funds, that alone could create taxable gains or losses even if the fund itself hasn't changed much in euro value.
Does that mean we calculate the original purchase price using the exchange rate from when we bought it years ago? How would anyone track that?
Yes, you need to convert the original purchase price using the exchange rate from the date you bought the investment, and then convert the sale proceeds using the exchange rate on the date of sale. Most people track this by keeping their original investment statements and looking up historical exchange rates online (the IRS accepts several official sources for historical rates). Some tax software and investment tracking apps can handle this calculation if you input the purchase dates and amounts in the original currency. Your broker might also provide this information on your annual tax statements, but foreign brokers often don't format their documents to US tax standards.
Whatever you do, make sure you file an FBAR form if your foreign accounts total over $10,000 at any point during the year. The penalties for not filing are ridiculous - like $10,000 per violation even if accidental! Also look into Form 8938 requirements which is separate from FBAR but also mandatory for foreign accounts.
i messed this up my first year as a tax resident and got hit with a penalty. ended up doing the streamlined filing procedures to get back on track. dont risk it, the foreign account reporting is the one thing IRS seems to really care about enforcing!
One thing nobody's mentioned is that being eligible for the American Opportunity Credit doesn't guarantee you'll get the refundable portion. The AOTC has two parts - up to $1,500 is non-refundable (only reduces tax you owe) and up to $1,000 is refundable (you get it even if you owe no tax). To get the refundable part, you need to meet additional requirements like not filing as MFS and having earned income. Make sure you have some income from a job to qualify for the refundable portion. Grants and loans don't count as earned income!
This is really helpful info. I had about $8,200 in income from my part-time job last year, so I should qualify for the refundable portion, right? I'm filing as single.
Yes, with $8,200 in earned income and filing as single, you should qualify for the refundable portion of the AOTC assuming you meet all the other requirements. Since you're not claimed as a dependent, paid qualified education expenses, and were enrolled at least part-time for one academic period, you're on the right track. Just make sure you complete Form 8863 correctly to claim the credit. The refundable portion will be calculated automatically and can be up to $1,000, which is 40% of your eligible credit. It's definitely worth claiming since that money comes back to you even if you don't owe any taxes!
Warning - be careful claiming the refundable portion of the AOTC! It's one of the most audited tax credits. Make sure your 1098-T supports your claim and you have records of ALL your qualified education expenses. I got audited last year over this and had to provide every receipt for books and supplies.
I've heard this too. Any tips for organizing the documentation? My school's financial aid office is horrible and I'm worried they reported things incorrectly on my 1098-T.
Omar Fawaz
my sister got a weird letter too last month abt some audit thing but when she called turns out it was for someone with a similar name!!! the irs mixed up her with another person who had like 1 letter different in their last name. maybe check if all ur personal info on the letter is 100% correct
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Chloe Martin
โขThis happened to me too! They had my address right but the last 4 digits of the SSN were wrong. I wouldn't have even noticed if I hadn't double-checked everything. Definitely look at all the identifying info carefully.
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Diego Rojas
Whatever you do, DON'T ignore the letter. The IRS will assume their position is correct if you don't respond by the deadline on the notice. Even if you think it's a mistake or doesn't apply to you, you need to respond. Also, check if it's actually from the IRS - there are a lot of scams out there. A real IRS letter will have a notice number and info about your rights as a taxpayer. If you're not sure, you can always call the main IRS number (not necessarily the one on the letter) to verify it's legitimate.
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Anastasia Sokolov
โขThis is so important - ignoring IRS notices is the worst thing you can do. My dad thought a letter was a scam and ignored it... ended up with a $2,500 tax bill that grew to over $4,000 with penalties and interest before he finally dealt with it. The IRS doesn't just "forget" about these things!
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