We got a bunch of papers from the insurance company but honestly we were so overwhelmed with grief and funeral arrangements I don't remember a 1099. We just saw the check and deposit instructions. Maybe we missed something important! Actually think I still have the folder with all the insurance papers. Going to dig through it tonight. Do you know if it would specifically say "1099" or could it be called something else?

It would definitely say 1099 on it, but could be different types like 1099-R (for retirement distributions), 1099-INT (for interest), or even 1099-MISC. Look for any form with numbers broken down into different boxes or categories. Also check if the policy had what's called a "Modified Endowment Contract" or MEC status. These are life insurance policies that have been funded with more money than tax law allows, which changes how they're taxed. If the policy was a MEC, then part of the payout could definitely be taxable.

I'm not OP but have a similar situation. If the policy was whole life and the death benefit was $200K but only $150K was the actual insurance (with $50K being cash value that built up), is only that $50K taxable? Or is it more complicated?

Not to hijack this thread, but what about if someone cashes out a life insurance policy before death? My uncle is considering this with his policy and I'm trying to help him understand the tax implications.

Thanks for sharing your experience! What exactly is an Acceptance Agent and how do I find one in Warsaw? Also, did ETH Denver (or equivalent in your case) actually agree to the extension when you asked?

An Acceptance Agent is someone authorized by the IRS to verify identification documents for ITIN applications. They can certify your original documents so you don't have to mail them to the IRS. You can find a list of international agents on the IRS website - search for "acceptance agents abroad" and filter for Poland. The tech competition in my case did agree to a 45-day extension. They were understanding once I showed them documentation that I had started the TIN application process. I found that being transparent about the timeline and keeping them updated regularly made them more willing to work with me. I sent them the receipt from the Acceptance Agent as proof that I had actually started the process, which helped a lot.

That's not correct advice at all. State ID numbers are completely different from federal taxpayer identification numbers and aren't recognized for federal tax treaty purposes. Either your cousin misunderstood what happened or the organizers made a mistake. Using a state ID in place of a TIN on W-8BEN could actually create bigger problems down the road when the IRS reviews the withholding.

Is that something we need to report separately on our tax return? I have a similar code but wasn't sure what to do with it.

For Roth 401k contributions, you generally don't need to report them separately on your tax return. The amount has already been included in your taxable wages (Box 1) on your W2. The code is mostly informational so you can verify the right amount was contributed throughout the year. Your 401k administrator will send you a separate Form 5498 showing your total contributions, but even that is just for your records.

If your employer subsidizes your parking as a qualified transportation fringe benefit, up to a certain monthly limit ($300/month for 2025) can be excluded from your taxable income. If that's the case, it's likely just listed in Box 14 for informational purposes and was already excluded from your Box 1 wages.

That's really good advice - I wouldn't have thought about the certified mail option. Did your roommate eventually get her refund after all that trouble? And did she have to pay any penalties for filing incorrectly the first time?

She did finally get her refund about 7 months after submitting the amended return, but the IRS actually adjusted the amount slightly based on some tax treaty provisions that applied to her specific country. They didn't charge any penalties or interest since it was clearly just a mistake about which form to use rather than trying to evade taxes or anything. One other tip she learned: call the IRS International Taxpayer line at 267-941-1000 instead of the regular number. They're more familiar with non-resident issues and J1 visa situations specifically. Though getting through is still a nightmare unless you use one of those line-cutting services mentioned above.

This is great advice! I work at a university international student office, and we offer free tax help specifically for situations like this. Most large universities with international programs have resources to help with non-resident tax issues. One thing I should clarify though - the 1040-X form is only for amending a tax return if you're a US citizen or resident alien. As a non-resident alien on J1, you actually need to file a 1040-NR with a statement attached explaining the error. The amendment process is slightly different for non-residents.

This is really interesting and I hadn't considered it before. A few questions: What kind of immediate tax deduction would I be looking at roughly? And how is the income stream taxed? Also, can I set up something like this quickly, or does it take months of planning? My acquisition is happening within the next 60 days.

The immediate tax deduction typically ranges from 20-50% of the value of the assets you contribute, depending on the payout rate you choose and the term of the trust. Lower payout rates and shorter terms generate higher deductions. For someone in your tax bracket, this deduction could be quite valuable. The income stream is taxed according to a four-tier system: ordinary income first, then capital gains, tax-exempt income, and finally return of principal. In your case, since the trust would be selling highly appreciated stock, much of your distributions in early years would likely be taxed as capital gains (still better than paying it all upfront). Regarding timing - 60 days is tight but doable. You'll need to work with an attorney who specializes in charitable planning to draft the trust documents, get an appraisal of the stock value, and coordinate with both the charity and your financial institutions. I'd recommend starting this process immediately if you're interested.

This is incorrect advice. You cannot 1031 exchange from stocks into real estate. Section 1031 only applies to "like-kind" exchanges of real property (real estate for real estate). Stock sales cannot be rolled into a 1031 exchange. This is a fundamental limitation of 1031 exchanges that hasn't changed with tax reforms.