Thank you so much for mentioning Form 8833! I just checked my 1042-S and they did apply a treaty benefit (there's something in Box 3 and 4). Will that form be available in regular tax software or do I need something special to file it?

Most major tax software packages like TurboTax, H&R Block, and TaxSlayer have Form 8833 available, but you might need to specifically search for it as it's not always included in the standard interview process. Some of the free filing options might not include this form. When you complete Form 8833, you'll need to reference the specific treaty article that applies to your situation. This information should be mentioned on your 1042-S in Box 13j typically. You'll also need to provide a brief explanation of the treaty benefit you're claiming. Don't worry too much about the technical language - just clearly state what type of income is covered (scholarship, fellowship, etc.) and which country's treaty applies to you.

Is that form 8843 required even if you're just getting a small amount on a 1042-S? I got one for a $500 prize from a contest but I'm a US citizen. Do i still need that form?

That's a really smart idea I hadn't considered! I do have student loans and I've been making payments. Would those interest deductions help in this situation? Also, is it too late to make retirement contributions that would count for last year?

Student loan interest can definitely help lower your MAGI, which is exactly what you want in this situation. You can deduct up to $2,500 in student loan interest depending on your income level. As for retirement contributions, you can still make IRA contributions for 2024 until the tax filing deadline in April 2025. If you have self-employment income, you might also be eligible for a SEP IRA which has higher contribution limits. Just make sure you specify that the contribution is for tax year 2024 when you make it. This is one of the few "retroactive" moves you can make that legally affects your previous year's taxes.

Yes! I successfully did this. The key is that you need to contact the marketplace and specifically request an "income adjustment review" for the previous year. The regular customer service reps often don't know about this process. Ask to speak with a supervisor or advanced resolution team. Explain that you made an honest mistake in reporting your income (confusing net vs. gross) and request the review. They may have you submit documentation of your actual income. In my case, they adjusted my 1095-A and issued a corrected one, which significantly reduced what I owed.

Does anyone know if the American Opportunity Credit can be claimed if you're going back to school for a second bachelor's degree? Or does the "first 4 years" rule mean your first degree only?

The "first 4 years" rule refers to the first four years of post-secondary education total, not just your first degree. So if you already completed a 4-year bachelor's degree, you generally wouldn't qualify for the American Opportunity Credit for a second bachelor's. In that case, you might still qualify for the Lifetime Learning Credit though, which doesn't have the "first 4 years" restriction. It's worth less (20% of up to $10,000 in qualified expenses), but still helps reduce your tax bill.

I used TaxSlayer last year and was able to claim the American Opportunity Credit without any extra fees. Their interface isn't as polished as TurboTax but it's definitely user-friendly and they walked me through all the education credit stuff pretty clearly.

I did mail paper returns for all three years because I had to include some supporting documentation. Did you do anything special to make the process go faster for the 2021 return?

I didn't do anything special for the 2021 return - it just happened to get processed faster. Paper returns are unfortunately at the mercy of whichever processing center they get sent to and how backed up that specific location is. One thing I learned later is that you can actually e-file amended returns for tax years 2019 and later using certain tax software, even with supporting documentation (you can scan and attach PDFs). E-filed amendments tend to process much faster than paper ones. For future reference, that might be a better option if you ever need to amend again.

I did this for my amended returns too. The in-person agent was WAY more helpful than phone support. She even spotted a mistake in my 2019 amendment that would have caused issues and let me fix it on the spot.

That's great to hear your experience was similar! The in-person assistance is definitely underrated. The agents at the Taxpayer Assistance Centers seem to have more time to thoroughly review your situation compared to phone agents who are trying to get through as many calls as possible. I've found they can also sometimes expedite processing if you have a legitimate hardship situation or if there's been an unusually long delay. Did they offer to help speed things up in your case?

That's a really good point I hadn't considered. Do you know if there's any way to "make up" for those missed Social Security contributions? Or am I just permanently losing those quarters of coverage for retirement calculations?

When you file your back returns with Schedule SE for each year, you'll essentially be making up those Social Security and Medicare contributions (albeit with penalties and interest). The good news is that once you pay these taxes, those quarters will count toward your coverage for Social Security benefit calculations. There's no permanent loss of credit. The bad news is that self-employment tax is a significant amount (about 15.3% of your net earnings) on top of income tax. This often catches people by surprise when filing back returns. Make sure your tax professional looks for all legitimate business deductions on Schedule C to reduce your net profit, which in turn reduces your self-employment tax liability.

This is solid advice. I did exactly this when dealing with my unfiled returns. Filed the current year on time, then worked backwards. The revenue officer specifically mentioned this showed "good faith" and it seemed to help during negotiations. Also helped psychologically to feel like I wasn't continuing to dig the hole deeper.