Check if there might be a mistake with the "basis" tracking for your Roth. When I contributed to my Roth after doing a backdoor conversion from Traditional, my brokerage messed up the basis reporting and I got a similar penalty notice.

I've seen this exact situation before, and it's incredibly frustrating when you know you've done everything right! Based on your description, I'd strongly recommend getting a copy of Form 5498 from your IRA provider - this is the form they send to the IRS reporting your contributions. Sometimes there are discrepancies between what you think you contributed and what was actually reported. Also, double-check if you have any employer retirement plan contributions that might affect your eligibility. Even though the income limits for Roth IRAs are separate from 401(k) plans, sometimes people get confused about the interaction between different retirement accounts. One more thing to consider - if you received any unemployment compensation or other income that might not have been on your W-2, that could push your MAGI higher than expected. The IRS calculations can be tricky, and sometimes income sources we forget about can cause issues. Don't panic though - if this is truly an error, it's absolutely fixable. Document everything and be prepared to show your work. The IRS will correct legitimate mistakes, it just takes patience and proper documentation.

OMG I'm in the same boat! Filed 1040X on 3/15, received 3/22. Still nothing but "received" status on WMAR. Literally check it 2x daily lol. Hoping for movement soon bc need $ for summer vacation. Thx for posting this Q - makes me feel better knowing I'm not alone in the waiting game!

I'm experiencing a similar situation with my amendment. Filed 1040X on 3/12, received confirmation 3/19, and still showing "received" status on WMAR. What I've learned from researching this is that the IRS processes amendments in batches, and March filings unfortunately coincide with peak tax season volume. From what I've gathered, the "received" status can persist for 12-16 weeks before any movement occurs. One thing that helped ease my anxiety was calling the Taxpayer Advocate Service (TAS) at 1-877-777-4778 - they can't speed up processing but they can confirm if there are any issues preventing normal processing. Also, I'd recommend documenting everything for your records, including screenshots of WMAR status and dates, in case you need to escalate later. The honeymoon fund stress is real, but try not to let it consume your daily thoughts - the system is just overwhelmed right now.

I think people are making this way more complicated than it needs to be. The rule is simple - ALL income is taxable, whether you get a form for it or not. The 1099 thresholds are just about when companies have to REPORT the income to the IRS, not about when YOU have to report it. If you're trying to make money (which it sounds like you are), then it's a business and you need Schedule C. End of story. Doesn't matter if you made $10 or $10,000. The good part is you can deduct expenses, including part of that tablet. The "hobby vs business" thing only matters if you're showing losses for multiple years and the IRS thinks you're just trying to create artificial losses to offset other income.

Just want to add something important - if you file Schedule C and show a profit over $400, you'll also need to pay self-employment tax (Social Security and Medicare) which is about 15.3%. Since you said you made about $380 from commissions plus $790 from templates, that's $1,170 total, so you'd definitely owe SE tax. BUT! Don't forget expenses. If you bought that tablet this year, software subscriptions, maybe a portion of your internet bill if you use it for business, those are all deductible expenses that reduce your profit and potentially your tax. My advice - track EVERYTHING. Keep receipts. Log hours spent on business vs personal use for things like your tablet. It'll make tax time way easier and could save you money.

I think everyone's overcomplicating this. If you're making money from Only... I mean "selling pictures online" and it's not much, just don't report it? Use cash app or something that doesn't send tax forms. The IRS isn't going after small fish especially international students.

I went through almost exactly the same situation last year as an international student with online income! Here's what I learned: You definitely need to report this income - the IRS considers any money earned while physically present in the US as taxable, regardless of citizenship status. For digital art commissions, you'll be filing as self-employed using Form 1040NR and Schedule C. Regarding privacy, this was my biggest concern too. The good news is that ALL tax correspondence goes to whatever address you put on your return - just use your current US address and nothing will be sent to your home country. I also set up an online IRS account to access everything electronically, which minimized any physical mail. One thing that really helped me was checking if your home country has a tax treaty with the US. Many countries do, and it can significantly reduce what you owe or even exempt certain types of income. The IRS Publication 901 has all the details. Keep detailed records of any expenses related to your art business (software, supplies, equipment) - these are deductible and can really help reduce your tax burden. And if you're making over $400 net profit, you'll need to pay self-employment tax too. Don't stress too much about keeping it private from your family - the US tax system is completely separate from your home country's system, and there's no automatic information sharing for individual tax returns.

Just to add another perspective - if you're planning to stay remote long-term, it might be worth exploring whether you can transition some of your work to contractor status with your current employer or pick up additional freelance work in your field. Even a small amount of legitimate self-employment income (like $2,000-3,000 annually) can open up the ability to deduct a portion of your home office expenses including that laptop. I made this transition gradually - started doing some weekend freelance projects in my area of expertise, and now I can legitimately allocate about 25% of my home office costs (including my $1,800 computer setup) to my Schedule C business expenses. The key is that the freelance work has to be real and documented - you can't just create fake income to justify deductions. Even if you decide not to pursue self-employment income, definitely follow up on the employer reimbursement suggestion. Many companies are more open to this now than they were pre-2020, especially if you frame it as a retention and productivity benefit.

I went through this exact same situation last year and want to share what I learned after doing a deep dive into the tax code. The previous comments are absolutely correct - as a W-2 employee, you cannot deduct unreimbursed work expenses like your laptop anymore due to the TCJA changes. However, here are some practical steps you can take: 1. **Document everything now** - Keep receipts and records of when/how you use the laptop for work. If your employment situation changes (like picking up freelance work), you'll need this documentation. 2. **Ask about employer reimbursement** - Frame it as a business expense that benefits productivity. Many employers are more receptive now, especially if you can show the laptop will be used long-term for remote work. 3. **Consider the timing** - The TCJA provisions expire after 2025, so unreimbursed employee expense deductions may return for 2026 and beyond (though this depends on future legislation). 4. **Look into state taxes** - Some states still allow these deductions even though federal law doesn't. Check your state's specific rules. The frustrating reality is that right now, W-2 employees are in a tough spot with home office expenses. The tax code assumes employers will provide necessary equipment, which obviously doesn't match the remote work reality many of us face.