Has anyone here dealt with a partial rollover? My situation is similar but I only rolled over about 80% of my distribution and took 20% in cash. My 1099-R shows the full amount as taxable but I'm not sure how to report that only part of it should be taxed.

Just wanted to add another perspective here - I'm a former school district HR administrator and dealt with TRS rollovers frequently. The code "7" on your 1099-R is unfortunately common when retirement systems don't properly coordinate with the IRS about direct rollovers. What's important is that you have documentation showing it was a direct transfer. Keep any paperwork from both TRS and Fidelity showing the rollover instructions and confirmation. When you file your taxes, you'll report the 1099-R as received, but then correctly indicate it was rolled over to avoid taxation. Also, Fidelity should issue you a Form 5498 by May 31st showing the rollover contribution to your IRA. This form helps the IRS match up that the funds were properly rolled over even if the original 1099-R wasn't coded correctly. Don't panic about the immediate tax liability - just make sure you answer the rollover questions correctly in your tax software!

One more thing to consider: if your wife becomes a resident alien through the substantial presence test in the future (basically by living in the US long enough), you won't need to make the special election anymore, but you'll still file jointly. And heads up that you'll need to continue making the election every year until she either becomes a resident alien or gets a green card!

This thread has been incredibly helpful! I'm in a similar situation but with a twist - my husband is from Canada and we got married in December. I'm curious about one thing that hasn't been mentioned yet: does the timing of when you got married during the tax year affect anything? Also, for anyone who went through this process, how long did it typically take to get the ITIN approved? I'm worried about filing delays since we're cutting it close to the deadline. And a quick question about that FBAR reporting - if my husband has a joint account with his parents back in Canada that he's technically on but doesn't really use, does that count toward the $10k threshold? The account has way more than $10k but it's not really "his" money.

Don't panic yet! I've handled several S-Corps owned by trusts. Here's my checklist: 1. Get a complete copy of the trust document 2. Verify if it's a grantor trust (most living trusts are) 3. If grantor trust, confirm the grantor is a US citizen/resident 4. Check if ownership actually transferred (many clients say they did things their attorney hasn't actually completed yet) 5. If it's not a qualifying trust, file Form 2553 with a QSST or ESBT election 6. Document everything in case you need to request inadvertent termination relief Most living trusts are qualifying shareholders as grantor trusts. The biggest issue is often just documentation and making sure the proper tax ID is used on K-1s.

Just wanted to add one more thing that helped me in a similar situation - make sure to document the exact date of the stock transfer to the trust. This becomes critical if you end up needing to file for inadvertent termination relief or if the IRS questions the timing of any elections. Also, even if it turns out to be a qualifying grantor trust (which sounds likely based on your description), you'll want to make sure the K-1s for 2024 are issued correctly. If the transfer happened in August, you might need to issue separate K-1s - one to the individual for January-August and one to the trust for August-December, depending on how the stock certificates were handled. One last tip: if this client has other business entities or is considering the family management company you mentioned, this trust structure could actually work in your favor for future estate planning. Worth discussing with their attorney once you get the current situation sorted out!

According to the official IRS.gov appointment guidelines (https://www.irs.gov/help/contact-your-local-irs-office), you should bring: 1) Current year return, 2) Prior year return, 3) All supporting documents for current year (W-2s, 1099s), 4) Two forms of ID, and 5) Any IRS notices you've received. I was nervous about my appointment too, but having everything organized in separate folders really helped.

I went through this exact same process about 6 months ago and can confirm what others are saying - bring everything! The agent at my appointment specifically asked for my current year return (2023), the prior year (2022), and all supporting documents like W-2s and 1099s for the current year. They also wanted to see two forms of photo ID. The whole process took about 45 minutes, and they were very thorough in cross-referencing information between years. I'd recommend organizing everything in clearly labeled folders beforehand - it made the appointment go much smoother. With three kids, I totally understand wanting to get this right the first time. Better to over-prepare than have to reschedule!

FWIW it sounds like your husband's work might be using those new 2025 W-4P withholding tables incorrectly. I'm going through exact same thing with my payroll. New updated tables came out but our payroll company applied them in a way that's drastically reducing withholding for everyone. We literally had a company-wide meeting about it last week when everyone started noticing their withholding dropped to almost nothing overnight. Payroll is supposedly fixing it but said any underwithholding from earlier checks is basically our problem to deal with.

This is incredibly frustrating but unfortunately not uncommon right now. I work in HR for a mid-sized company and we've been getting similar complaints since the beginning of the year. What's likely happening is that your husband's employer's payroll system has a configuration error with the 2025 withholding tables. We discovered our system was incorrectly applying married filing status calculations that assumed significantly higher standard deductions than appropriate, resulting in dramatically reduced withholding amounts. A few immediate steps you can take: 1. Request that your husband's HR department provide documentation showing exactly how they calculated his withholding amount. They should be able to show the math. 2. File a new W-4 immediately with "Single" selected for withholding purposes (this won't affect how you file your actual return) and add extra withholding in step 4(c). 3. Document everything - keep copies of paystubs showing the incorrect withholding amounts, your communications with HR, etc. If HR continues to be unresponsive and multiple employees are affected, this may warrant a complaint to your state's Department of Labor. Employers have legal obligations to implement withholding correctly, and systematic errors affecting multiple employees can result in penalties for the company. Don't let them brush this off as "just how the system works" - withholding of pennies on thousands in wages is mathematically impossible under normal circumstances.