Whoa, I had no idea about the sunset provision! That could be a huge deal for my uncle. He's in Massachusetts if that makes a difference for state-level taxes. Would you recommend he talk to a specialized estate planning attorney rather than his regular attorney who handles his other legal matters?

Massachusetts has a state estate tax threshold of only $1 million with tax rates ranging from 0.8% to 16%, so yes, this is definitely something your uncle needs to address regardless of federal exemption amounts. Absolutely recommend a specialized estate planning attorney rather than a general practitioner. Estate planning, particularly with estates approaching the federal exemption and in states with their own estate taxes, requires specific expertise. The right attorney can potentially save your uncle's estate hundreds of thousands or even millions in taxes with proper planning. The fee for specialized advice will be well worth it given the potential tax savings.

This is such an important point. My mother did something similar and it was a nightmare. Are there any types of trusts that offer tax benefits but still maintain some flexibility?

Thank you so much for sharing this! That's really reassuring to hear that it didn't affect your green card application. Did you use a tax professional to help with the amended return? I'm worried about making another mistake if I try to fix it myself.

I actually used my university's international student office resources to help with the amended return. Most schools have free tax assistance specifically for international students dealing with exactly these issues. They helped me complete the 1040-X and 1040-NR forms correctly. If your school doesn't offer this service, consider asking an advisor who specializes in international student taxes. The key is making sure you're filing as a nonresident alien if you've been here less than 5 years and are on a student visa, since different rules and possibly beneficial tax treaties apply to your situation.

None of the mainstream tax software (TurboTax, TaxSlayer, H&R Block) properly handles nonresident alien tax situations. I learned this the hard way. They're designed for US citizens and residents. As an international student, you need something that specifically handles Form 1040-NR and tax treaties, like Sprintax or GlacierTax.

What happens if the amount on the W2 doesn't match what's on my 1095-A? My employer says they paid $4800 for my insurance but my 1095-A shows different numbers for the monthly premiums.

The W-2 and 1095-A show different information and won't necessarily match. Your W-2 shows what your employer paid toward your health insurance premiums, while Form 1095-A shows information about your Marketplace coverage, including total premiums and any advance premium tax credits. These forms serve different purposes in your tax return. The employer contribution on your W-2 represents their share of your health insurance cost, while the 1095-A helps you claim or reconcile premium tax credits. TurboTax will ask for both forms and guide you through entering the information correctly for each purpose.

This is really helpful thx! One question - do you happen to know if there's any income limit for this exemption? Like if you make over a certain amount does it become taxable?

That makes a lot of sense actually! The platform does take a percentage of earnings, so maybe the digital version showed net income while the paper shows gross? That would explain the difference. Should I still amend my return even if that's the case?

Yes, that's likely what happened. Regardless of the reason for the discrepancy, you should technically report what's on the official paper 1099 since that's what the IRS receives. Even if the digital showed post-fee income, the IRS expects you to report the gross amount and then deduct eligible fees as business expenses on your Schedule C. An amendment would be the proper course of action, though as others mentioned, the tax difference will be minimal. Just make sure if you're deducting business expenses that you include those platform fees as part of your deductions.

I wouldn't recommend ignoring it. Friend of mine ignored a $150 discrepancy and got a CP2000 notice about 18 months later. Ended up paying the extra tax plus interest. Not a huge deal but definitely more annoying than just fixing it upfront.

Wait, so if he enrolled in college classes the income limit wouldn't matter? Even at a community college? My daughter works part-time making about $8k but she's taking 3 classes each semester.

That's correct! If your daughter is under 24 and a full-time student (generally defined as taking a full course load for at least 5 months of the year), then the gross income test doesn't apply for determining if she's your qualifying child. She would need to meet the other tests: relationship (your daughter, so check), residency (lived with you for more than half the year), age (under 19 or under 24 if full-time student), and support (you provide more than half her support). The number of classes determines full-time status according to the school's definition, so 3 classes might qualify if her school considers that full-time.

Your friend is probably claiming her daughter as a qualifying child rather than a qualifying relative. If her daughter is a full-time student under 24, the income limit doesn't apply. The rules are different depending on which type of dependent they are.