Did you need to provide any financial documentation to get on a payment plan? I'm worried they'll want to see all my expenses and bank statements.

For my situation (owed about $7k), I didn't need to provide detailed financial documentation. They just asked about my general monthly income and expenses over the phone. If you request a larger monthly payment amount than they initially suggest, they're less likely to request detailed financial info. For larger tax debts (over $10k I think), they might ask for more detailed financial information using Form 433-F. But even then, it's not as invasive as people fear.

That's a great tip! Does it work for state taxes too? My levy was from the state department of revenue.

Great point! I actually did this for my daughter and they were super helpful. They printed out a detailed breakdown of all her financial aid by semester and explained exactly why they had to make the adjustment. Saved me a lot of guesswork.

That's good to hear! Financial aid offices deal with these forms all the time, so they're usually pretty good at explaining what each box means. One thing I learned is that different schools handle these adjustments differently, so it's always worth checking with your specific school. Sometimes they can even provide documentation that explains the adjustment, which is helpful if you need to file an amended return or if you get questions from the IRS later.

Thanks for mentioning this! We filed last year's return in February, so it sounds like we have plenty of time to figure this out. Would you recommend filing the amendment before working on this year's taxes, or should we finish this year's taxes first and then go back to amend last year's?

I'd generally recommend completing your current year's taxes first, then circling back to the amendment. This way you have a clear picture of your current situation before making changes to past returns. Just make sure to keep good notes about what you need to amend while it's fresh in your mind. Write down the exact adjustment needed and set a reminder to come back to it after tax season. Many people intend to file amendments but forget about it once the immediate tax deadline passes.

I did have a pretty expensive health insurance plan that was coming out pre-tax, plus I was maxing out my 401k that year. Could those really account for almost $95k difference between box 1/5 and box 3 though? That seems like a massive gap!

Health insurance premiums and 401(k) contributions typically reduce your Social Security wages, but $95k is an unusually large difference. Even if you maxed out your 401(k) at the 2018 limit ($18,500 plus any catch-up contributions if you were over 50), and had expensive health insurance (let's say $15,000-20,000 for a premium family plan), that would still only account for maybe $40,000 of the difference. If there's still a $55,000 gap unaccounted for, it's likely there was a reporting error. Another possibility is if you had some deferred compensation or special bonus arrangement that was treated differently for Social Security purposes. Either way, I would definitely contact your former employer for clarification.

Check if you contribute to a 457(b) plan. Those reduce your Social Security wages but not your Medicare wages. My wife works for the state and has this exact situation - big difference between box 3 and boxes 1/5 because of her 457(b) contributions and healthcare FSA.

Thanks for mentioning this! Can you explain more about Form 8843? Does everyone who's a nonresident alien need to file it? And what happens if I should have filed it in previous years but didn't know about it?

Form 8843 is for "Statement for Exempt Individuals and Individuals With a Medical Condition." You need to file it if you're claiming an exemption from the substantial presence test because you're a student, teacher, trainee, or have a medical condition that prevented you from leaving the US. If you're a nonresident alien who doesn't fit those categories, you don't need to file Form 8843. But if you should have filed it in previous years and didn't, you should file it as soon as possible. There's generally no penalty for filing Form 8843 late if you don't owe any taxes, but it's important to get compliant.

This is so true! I was a resident alien federally but NY state considered me a nonresident. Made filing really confusing until I figured it out.

Did you claim any credits like EIC or child tax credit? I heard those automatically delay processing. I'm on day 25 of waiting and getting nervous...

No special credits at all, which is why I was surprised by the delay. Just a totally vanilla return with W-2 income and the standard deduction. From what I've gathered reading online, even the simplest returns seem to be taking longer this year. The IRS apparently prioritizes certain returns with credits for lower-income filers, which is understandable, but it means even simple returns can sit in the queue longer than usual.

Try calling the IRS directly at 1-800-829-1040. I was stuck in "still processing" for almost a month, called them, and found out there was a simple identity verification issue they never bothered to notify me about. After verifying my identity, I got my refund in 9 days.