Thanks for bringing this up! I did pay for my flight to Atlanta (about $350) plus the hotel for 3 nights (~$600) and the convention entry fee ($150). Would all of these potentially be deductible against the prize money? And where exactly would I list these on my tax forms?

Yes, those expenses would potentially be deductible against your prize money! The flight, hotel, and convention entry fee would all count as expenses directly related to winning the prize. You would list these as a reduction to the income on Schedule 1, Line 8z. For example, if your prize was $2,500 and you had $1,100 in related expenses, you would report "Gaming tournament prize income $2,500 less related expenses of $1,100 = $1,400" on that line. Make sure to keep all your receipts in case of an audit.

Yep, and if you won it while physically in Texas but live in North Carolina, you might need to file a non-resident tax return for Texas too if they require it for prize winnings. Tax rules vary by state!

Does this apply even if I'm not getting a refund? I usually end up owing a small amount but still claim the Child Tax Credit for my two kids.

If you end up owing taxes rather than receiving a refund, the PATH Act verification delays won't impact you. The delay only affects refunds being issued to taxpayers claiming these credits. Since you typically owe a small amount, you can file as early as January 23rd and the PATH Act won't cause any additional delays in your return processing. Just make sure you pay any amount owed by the filing deadline (April 18th this year) to avoid penalties and interest.

Yes, IRS Free File typically opens on the same day as the tax season starts! I've been using it for years. Just be aware that some of the participating companies sometimes add their own software to the mix a few days later than the official start date.

Thank you for mentioning that! I did claim treaty benefits under Article 20 for my country, but I didn't submit a Form 8833 because I thought it wasn't required for standard treaty exemptions. Is that form always required even for common treaty positions?

Form 8833 has some exceptions for common treaty positions, but the rules are quite specific. For students and teachers claiming benefits under Articles like 20, you often don't need Form 8833 for the standard exemptions. However, if your situation has any unusual aspects or if you're claiming benefits that reduce your tax by more than $10,000, then Form 8833 is required. If you're unsure, it doesn't hurt to complete and send Form 8833 even if it wasn't strictly required. The IRS would rather have more documentation than less. Include a copy of your relevant treaty article and explain your position clearly to avoid further delays.

Sprintax is the best for 1040NR btw... most regular tax software doesn't handle international situations well. I tried using TurboTax my first year and it was a disaster. Switched to Sprintax and haven't had issues since.

I just double-checked all my banking info and everything looks correct. My boss was super careful when entering everything. Is there any way to confirm with the IRS that they have the right account number on file?

Unfortunately, you can't verify the exact account details the IRS has on file through the Where's My Refund tool. The best way to confirm would be to speak with an IRS representative directly, which goes back to the challenge of reaching someone. If your return was e-filed through H&R Block, you could also contact them to verify what banking information was submitted with your return. They should have records of exactly what was sent to the IRS.

This is so true. The IRS sent me a letter asking for proof my kid lived with me, and it got lost in a pile of junk mail. I never responded and my refund was delayed for MONTHS.

Thank you - that's helpful! It was definitely a direct rollover, so I never actually touched the money. I was mainly confused because TurboTax kept asking me about IRA contributions and I wasn't sure if the rollover counted as one. Sounds like I don't need to enter anything about the rollover when filing?

You're welcome! Since it was a direct rollover, you generally don't need to report it on your tax return at all. Most tax software will ask if you made any "contributions" to an IRA, but a rollover isn't considered a contribution in the tax sense. The only exception would be if your 1099-R (which you should have received from Principal showing the distribution) has a distribution code that doesn't clearly indicate it was a rollover. In that case, you might need to clarify in your tax software that it was indeed a qualified rollover. But in most direct rollover cases, everything is properly coded and you don't need to take any action.

This is so important! I messed this up last year and accidentally reported my rollover as income. Had to file an amended return after realizing the mistake. Check that code box on the 1099-R carefully!