Another thing to consider - if you continue filing separately, and your wife has to itemize when she otherwise wouldn't want to, she might not have enough deductions to exceed the standard deduction amount. In that case, she would just list all her itemized deductions (even if the total is less than the standard deduction) and potentially pay more tax than necessary. This is why the married filing separately status can be so punitive - you get stuck with the worst of both worlds sometimes.

I'm a tax preparer and can confirm what others have said - this is a real rule that's often overlooked. The technical citation is IRC Section 63(c)(6)(A), which states that if one spouse itemizes deductions, the other spouse's standard deduction is zero, effectively forcing them to itemize as well. What's interesting about your situation is that you've been non-compliant for years without detection. This highlights a gap in IRS enforcement - their matching systems are sophisticated for things like W-2s and 1099s, but they don't routinely cross-reference deduction methods between married filing separately returns. However, I'd strongly recommend getting compliant going forward. If either of your returns ever gets selected for examination (audit), the first thing they'll check is whether you're both using the same deduction method. The penalties and interest on any additional tax owed could add up quickly. Also consider that your wife's father may not be aware of this rule - it's one of those technical requirements that even some preparers miss because it's not intuitive and the software doesn't always catch it when preparing returns separately.

same boat fam. filed march 2023 still nothing 😭

Have you tried requesting your account transcript from the IRS website? That'll show you if there are any hold codes or issues that aren't visible in the "Where's My Amended Return" tool. I was stuck for 18 weeks and found out through my transcript that they had flagged my return for additional review. Once I knew the specific issue, I was able to call with the right information and get it resolved much faster. The transcript is free and gives you way more detail than the basic tracking tool.

Has anyone done this this year? I'm afraid of getting hit with some penalty if I file for stimulus money this late... is there a deadline to claim these payments?

I'm in a similar situation - never received my third stimulus payment and have been putting off dealing with it because the whole process seemed overwhelming. After reading through everyone's experiences here, it sounds like filing the 1040-X amendment is definitely doable without paying a tax service. Quick question for those who have successfully done this: Do you need any special documentation to prove you never received the payment? I checked the IRS "Get My Payment" tool back in 2021 and it always said "Payment Status Not Available" but I don't have any screenshots or records of that. Will the IRS cross-reference their payment records automatically when they process the amendment, or do I need to provide some kind of proof that I never got it? Also, for anyone still on the fence about this - the deadline for amending 2021 returns (third stimulus) is April 15, 2025, so there's still time but probably better to get it done sooner rather than later given how long the IRS is taking to process amendments right now.

I'm currently dealing with a very similar situation as someone who became a resident alien in 2023. Reading through all these responses has been incredibly helpful, especially the detailed experiences from people who actually went through this process successfully. What strikes me most is how consistent the advice is across different approaches - whether using professional services, AI tools, or handling it yourself, the key seems to be thorough documentation and demonstrating good faith compliance efforts. The fact that you were already filing FBARs correctly really does show you weren't trying to hide anything. I'm leaning toward the approach that Alejandro Castro described - filing amendments with detailed reasonable cause letters and supporting documentation. The timeline he suggested makes a lot of sense: showing when you became a resident, when you discovered the requirement, and how quickly you took action to fix it. One thing I'd add is to keep screenshots or documentation of when/how you discovered the Form 8938 requirement (like if you found it through IRS publications or tax preparation software). This can further support your reasonable cause argument by showing you were actively trying to understand your obligations. The small amounts of unreported income you mentioned ($150-200) really do suggest this was an honest oversight rather than intentional non-compliance. Combined with your prompt action to correct it, I think you have a very strong case for penalty relief.

I'm going through something very similar right now! Just became a resident alien in late 2023 and realized I missed several international reporting requirements. Reading everyone's experiences here has been incredibly reassuring. What really helped me was creating a comprehensive timeline document that shows: - When my status changed from student to resident alien - When I first learned about Form 8938 (I screenshot the IRS page where I discovered it) - How quickly I'm taking action to correct everything I'm also documenting that I was filing FBARs correctly, which shows I wasn't intentionally hiding anything - just genuinely didn't know about the additional Form 8938 requirement. The amounts involved in my case are also relatively small (under $300 in unreported foreign income), and like several people mentioned, this clearly shows it was an honest oversight rather than willful non-compliance. Planning to file amendments with detailed reasonable cause letters following the approach that worked for @Alejandro Castro. The key seems to be being completely transparent about the mistake while demonstrating good faith efforts to comply once you learn about the requirements. Thanks to everyone who shared their experiences - it's made what felt like a terrifying situation much more manageable!

Does anyone know if we need to file form 1120 even if we had zero actual income (only stock purchases) and are showing a loss? My CPA wants to charge me $800 to file an "incomeless" return and that seems steep.

I went through this exact same situation last year with my startup! The confusion around stock purchases vs. income is super common for first-time corporate filers. Miguel's advice above is spot-on - the $52.32 from founders purchasing shares goes on your balance sheet as paid-in capital, not as income on your P&L. For your business expenses like Zoom and Google Workspace, those are absolutely deductible as ordinary business expenses. Don't worry about the "startup costs" issue - those rules mainly apply to expenses incurred before you're actually operating (like market research before incorporating). Once you're incorporated and actively running your business, software subscriptions and similar operational expenses are regular deductions. Your Form 1120 will likely show a net operating loss, which is totally normal and expected for a new startup. The IRS sees this all the time - you're definitely not going to raise any red flags by having expenses exceed your minimal activity in year one. Just make sure you do file the return even with zero income, as C-Corps are required to file annually regardless of activity level.