


Ask the community...
14 Just FYI, the Free File Fillable Forms on the IRS website only work for the current tax year. For 2021 and 2022, you'll need to use tax software that offers prior year filing or download the PDF forms from the IRS and mail them in. I had to file a 2020 return last year and ended up using an older version of TurboTax I found on sale.
14 For prior years, you actually don't have a choice anymore - you have to file paper returns. The IRS only allows e-filing for current year and sometimes the year immediately before (during the beginning of filing season). Paper returns for prior years do take longer to process - typically 6-8 weeks minimum, and sometimes longer if there's a backlog. Make sure you send them via certified mail so you have proof of when you submitted them. Also, file each year separately in different envelopes to avoid confusion at the processing centers.
22 Has anyone tried contacting their employer for duplicate W2s? My old employer's HR portal only keeps them for 2 years and I need one from 2021.
16 Yes! I had to do this. Even if they're not in the portal, the payroll department should be able to generate a duplicate W2. I just called and explained the situation and they emailed me copies within a few days. If that doesn't work, you can also request a wage and income transcript from the IRS which shows all reported W2 info.
This isn't directly about the negative number, but make sure you also check if you qualify for the Recovery Rebate Credit for 2020. When I got a similar letter, it turned out I was missing both the Additional Child Tax Credit AND the Recovery Rebate Credit (stimulus payment). Ended up getting back almost $4,000 extra!
How do you know if you qualify for that Recovery Rebate thing? I filed in 2020 but honestly can't remember if I got all the stimulus payments or not.
The easiest way to check is to look at your 2020 tax return - there should be a Recovery Rebate Credit Worksheet or a line on the Form 1040 itself (Line 30). If that line is blank or zero, you might have missed out. You qualify if you didn't receive the full stimulus payments you were entitled to in 2020. The first payment was $1,200 per adult and $500 per qualifying child, and the second was $600 per adult and per qualifying child. If your income wasn't too high and you didn't receive these full amounts, you might be eligible for the credit.
Does anyone know the deadline for claiming this additional refund for 2020? I'm in a similar situation with a negative line 3 but I've been putting off dealing with it.
You generally have 3 years from the original due date to claim a refund for a given tax year. Since 2020 taxes were originally due May 17, 2021 (extended due to COVID), you have until May 17, 2024 to file an amended return or respond to an IRS letter about potential additional refunds. I wouldn't wait too long though - processing times can be lengthy, especially for amended returns or responses to IRS inquiries.
I think everyone's missing something important here. If you return money in the same tax year you received it, the company can adjust their books and not issue the 1099-NEC. BUT if you wait until next year to return it, they're still required to issue the 1099-NEC for this year's payment. I did bookkeeping for a small business and we had this exact situation. A contractor wanted to return payment for a project they couldn't complete. When they returned it in the same calendar year, we just reversed the transaction in our accounting system. No 1099 was issued because effectively no payment was made that year. Just make sure you get documentation from them showing the return of funds and confirmation they won't be issuing a 1099-NEC.
Thanks for this perspective! So if I understand correctly, I need to make sure I return the full $3,200 before December 31st, and get some kind of written confirmation from them that they won't issue the 1099-NEC? Is there any specific form or documentation I should ask for?
Yes, return the full amount before December 31st if you want to avoid the 1099-NEC entirely. Ask them for a receipt or formal acknowledgment of the returned payment that specifically states the date and amount returned, and that no 1099-NEC will be issued for this transaction. There's no specific IRS form for this situation, but you want something on company letterhead that clearly documents what happened in case you're ever questioned about it. Also, keep your own records - bank statements showing both the initial payment received and the return payment you made. Having a paper trail from both sides provides the best protection.
Just want to say that returning the $$ is probably more hassle than just dealing with the 1099-NEC. I freaked out the first time I got one too, but it's not that bad! Honestly TurboTax or whatever tax software you use walks you through it pretty easily. And the SE tax isn't as scary as it sounds - it's just 15.3% on top of your regular income tax. Plus you can deduct half of it! Don't overthink this. Keep the money, report the income, claim whatever legit expenses you had, and move on. Unless there's some other reason you need to return the money that you haven't mentioned?
This is the most sensible comment here. Plus if you return the money... you don't have the money anymore! Why give up $3,200 just to avoid some paperwork and maybe a few hundred in taxes? That makes no financial sense.
Just to add one more thing that nobody mentioned - if you're going to file a tax return with zero income just to maintain your capital loss carryover, you can e-file for free through the IRS Free File program regardless of your income level in previous years. No need to pay for tax software just to document your carryover.
That's really helpful, thanks! Do you know if I need to include any special forms besides Schedule D for the capital loss carryover? And will Free File guide me through that process?
You'll need Form 1040 (the main tax return), Schedule D (Capital Gains and Losses), and possibly Form 8949 (Sales and Other Dispositions of Capital Assets) depending on your specific situation. These forms work together to document your capital loss carryover. Yes, the IRS Free File program will guide you through completing these forms. Most Free File software will ask about capital losses from previous years and help you properly document the carryover. Just make sure you have your previous year's tax return handy so you can accurately enter the carryover amount.
I actually went through this exact scenario with capital losses a few years back. Make ABSOLUTELY SURE you file - I skipped one year thinking it didn't matter with no income and it caused a huge headache. The IRS flagged my return when I tried to use those losses two years later.
Did you end up losing the deduction completely or were you able to fix it somehow?
Freya Christensen
One additional thing to consider - if you had any income from your home country while studying in the US (like rental income, investments, etc.), you might still need to report it on your US tax return, even if you're paying taxes on it in Indonesia already. The US tax system is based on worldwide income for citizens and residents, but for nonresidents (which you likely are as an F-1 student in your first 5 years), you generally only pay US taxes on US-source income. However, you still need to disclose certain foreign accounts if they exceed $10,000 at any point during the year (FBAR requirements). I learned this the hard way when I almost got penalized for not reporting my home country savings account that my parents were contributing to while I was studying here.
0 coins
CosmicCowboy
ā¢Wait, I do have a savings account back home with about $12,000 in it. My parents put money in there for emergencies. Do I seriously need to report that? What form would I even use for that?
0 coins
Freya Christensen
ā¢Yes, if your foreign account(s) exceeded $10,000 at any point during the calendar year, you need to file a Foreign Bank Account Report (FBAR), which is FinCEN Form 114. This is separate from your tax return and filed electronically through the Financial Crimes Enforcement Network's BSA E-Filing System. This doesn't mean you owe taxes on that money - it's just a disclosure requirement. The deadline is typically April 15, but there's an automatic extension to October 15 if you miss the April deadline. The penalties for not filing can be severe, especially if they consider it a willful violation, so definitely take care of this!
0 coins
Omar Hassan
Don't forget about state taxes too! Federal and state taxes are separate in the US. Depending on which state your university is in, you might also need to file a state tax return. California (where UCLA is) definitely requires international students to file a state tax return if they earned income in California. You'll likely need to file Form 540NR. The state doesn't always honor the same tax treaty benefits that the federal government does, so you might end up owing state tax even if you're exempt from federal tax. State tax rules can vary widely, so check with your university's international student office for California-specific guidance.
0 coins
Chloe Robinson
ā¢This is so important! When I was at UC Berkeley, I filed my federal taxes correctly but completely forgot about California state taxes. Got a nasty letter about six months later with penalties. Don't make my mistake!
0 coins