Thanks for sharing your experience! That's really helpful to know. I think I'll give H&R Block a try this year since I'd rather pay a bit more for a smoother experience, especially with something like backdoor Roth where the tax implications can be significant if reported incorrectly. Did you use their Deluxe or Premium version? I'm trying to figure out which tier I need.

I used their Premium version because I also had some investment income and rental property to report. For just the backdoor Roth, I believe their Deluxe version would be sufficient as it covers IRA contributions and Form 8606. Their website has a comparison chart that can help you determine exactly which features you need. The interface is pretty intuitive, with a dedicated section for IRA contributions where you specifically mark them as non-deductible. Then when you enter the 1099-R for the conversion, it connects the dots automatically. Just make sure you complete both sections for everything to calculate correctly.

This is such an important point that often gets overlooked! I nearly made this mistake myself. For anyone confused: with a backdoor Roth, you should NOT be deducting your Traditional IRA contribution at any point. The whole strategy only works tax-efficiently if you use after-tax dollars for the initial contribution. Otherwise, you'll end up paying taxes during the conversion step.

Thank you for bringing this up! I didn't deduct my Traditional IRA contribution on last year's taxes, so I should be okay on that front. But it's a really good reminder about ensuring consistency between tax years. I feel like there are so many gotchas with this strategy that the software doesn't really warn you about. Do you know if FreeTaxUSA has any special review checks for these kinds of issues?

Thanks for bringing up the different exemption periods for different visa types - I didn't realize J1 and F1 had different exemption periods! My university does have an international student office but their tax appointments are completely booked until after the filing deadline. I'll try emailing them though to see if they can at least point me in the right direction.

The different exemption periods definitely make things tricky! For F-1 students, it's generally 5 calendar years, while for J-1 students/scholars, it's generally 2 calendar years (though there are some nuances based on your specific J-1 category). That's unfortunate about the appointments being fully booked. Definitely email them - many international offices have specific tax resources they can share even without an appointment. Also check if they offer access to Glacier Tax Prep or similar software specifically designed for international students - these tend to handle the residency calculations more accurately than general tax software.

Absolutely right about the worldwide income issue! I made this mistake my first year - filed as a resident and reported all my foreign bank interest and a small rental property income from my home country. Ended up paying way more tax than I needed to! Non-resident status would have saved me over $2000.

Thanks for this perspective! I hadn't considered the stimulus payment angle. That's definitely something to look into. And yeah, I'm really worried about the dependent situation. I honestly don't know if my parents actually claimed me that year or if I just assumed they did. Is there a way to check if someone claimed me as a dependent?

You can find out if you were claimed as a dependent by looking at your tax transcript for 2021, which you can request from the IRS website. It won't tell you who claimed you, but it will indicate if you were claimed by someone else. For checking about stimulus payments, look for line items on your account transcript regarding "Economic Impact Payment" or "Recovery Rebate Credit." If there's confusion about how these were handled, it could definitely affect your tax situation. The tax professionals at places like H&R Block deal with these types of issues all the time and often provide free initial consultations, so it's worth a visit to understand your options before you spend money on more expensive help.

This is a really good point. I had my identity stolen a few years back and the first sign was a tax bill for income I never earned. The IRS has a specific department for identity theft cases and they're actually pretty helpful. If this is what happened, you'll need to file Form 14039 (Identity Theft Affidavit) with the IRS.

This is actually a really good idea. My company started offering this last year through our payroll provider. Employees can withdraw up to 50% of their earned wages before payday with minimal fees. Much simpler than changing tax forms.

I hadn't thought about a payroll advance! That's a great suggestion. I'll check with our HR department to see if this is something our company offers through our payroll provider. I've passed along the other suggestions about properly adjusting the W-4 versus claiming exempt status. He seemed appreciative of the information and is going to talk to our payroll team about his options. Thanks everyone for the helpful advice!

This is so true! I did this once when I was younger and completely forgot that I'd still owe the taxes eventually. Ended up with a huge tax bill in April that I wasn't prepared for. Make sure your employee understands this is just shifting when he pays, not reducing his total tax burden!

Exactly right. So many people don't realize this. The amount of tax you ultimately owe is based on your total annual income and deductions, not on how much was withheld throughout the year. The withholding system is just a way to pay your taxes gradually instead of in one lump sum. Adjusting withholding doesn't change your tax liability - it only changes the timing of your payments.

Thanks for this suggestion! I'm going to contact the bursar's office tomorrow and specifically ask for a student account statement with the payment dates clearly shown. Should I also ask them to provide any kind of explanation letter about why they didn't issue a 1098-T? Would that help my case with the IRS?

Yes, definitely ask them for an explanation letter! Request a formal letter on university letterhead that explains: 1) why no 1098-T was issued for 2021, 2) confirmation that you were enrolled in spring 2021, and 3) verification of when your payments were actually received by the university. Most bursar offices have dealt with this exact situation before and should have a standard letter they can provide. Make sure the letter specifically mentions the dates your payments were processed in January 2021, as that's what the IRS needs to see to verify your eligibility for the credit in tax year 2021.

This is critical advice! I made the mistake of missing the response deadline on a CP2000 notice once, and it was a nightmare to resolve after that. They automatically processed the adjustment and started collection activities.