Do you know if Vanguard's Solo 401k has similar fee structure to Fidelity? I've heard Vanguard has good low-cost index funds but wasn't sure about their 401k admin fees for small businesses.

Vanguard does have a similar fee structure with no setup or annual maintenance fees, and they definitely have excellent low-cost index funds. The main difference I found was that Fidelity allowed me to invest in a wider range of options including individual stocks within the Solo 401k, while Vanguard limited me to their funds. Both are solid choices though. The key is to avoid the providers that charge $200+ annual administration fees or have costly setup fees. Those can really eat into your returns over time, especially when you're just starting out with your retirement savings.

That's a really good point I hadn't considered. I don't have immediate plans to hire employees, but it's definitely possible in the next 2-3 years. So if I understand correctly, once I hire employees, I'd need to either: 1. Convert my Solo 401k to a regular 401k with all the additional compliance requirements 2. Or with a SEP IRA, I'd need to contribute the same percentage for employees as I take for myself Is there a clear better option between those two scenarios?

That's a good point - I did file a mail forwarding request with USPS but maybe the IRS notice didn't get forwarded correctly. I'm friendly with the new tenants so I could ask them to check if anything came for me. Any idea what these verification notices usually look like so I can tell them what to look for? And if they don't find anything, is there a way to request a copy of whatever notice was sent?

The identity verification letters are usually pretty obvious - they come in IRS envelopes and typically have "Action Required" or something similar printed on them. They're letter 5071C, 5747C, or 5447C usually. If your new tenants can't find it, you can request a copy of the notice by calling the IRS or checking your online account. If it's an identity verification issue, you might be able to complete the verification online through the Identity Verification Service without the original letter. Just go to the IRS website and search for ID verify. You'll need info from previous tax returns, so have that handy!

This actually works! My brother had a similar issue and after contacting his congressman's office, his refund was processed within 3 weeks. They have special liaisons that work directly with the IRS.

Thank you for the detailed steps! Did you have to do anything special for the state tax portion or was it pretty straightforward once you figured out the federal part?

The state part was actually pretty simple once I figured out the federal portion. I just entered the state withholding amount from my 1042-S in the state withholding section along with my W-2 state withholding. For the income, I reported it the same way on my state return as I did on my federal. FreeTaxUSA walks you through the state portion after you complete the federal section, and the state return automatically imports most of the information from your federal return. Just make sure to double-check that all the withholding amounts are correct before submitting.

This is incorrect advice. As a resident alien, you generally CANNOT claim tax treaty benefits. Those are mostly for nonresident aliens only. Once you become a resident for tax purposes, you lose most treaty benefits except for very specific exceptions.

You're right, I should have been more clear. Most tax treaty benefits are for nonresident aliens, but there are some specific provisions that continue to apply even after you become a resident alien. It depends entirely on the specific treaty and the specific type of income. For example, the US-China treaty has provisions for students that can continue for a limited time even after becoming a resident alien. But you're correct that in most cases, becoming a resident alien means losing treaty benefits.

Does it matter that her state return was already accepted with the married name? Won't that cause problems when the federal return has a different last name?

States operate their own tax systems separate from the federal IRS system, which is why one might accept a return while the other rejects it. Some states don't verify against the SSA database as rigorously or might batch their verification processes. Having different names on your federal and state returns isn't ideal but it's not catastrophic. When you file with your maiden name federally, include a brief statement explaining the situation with your state return. The key issue is ensuring your tax ID numbers (SSN) match on both returns. Most tax agencies understand that name changes happen and have procedures to handle these timing mismatches.

Thank you so much for sharing your experience! I was worried I was the only one dealing with this. I'll go ahead and refile with my maiden name tonight. Did you have any issues with your state return? Mine was already accepted with my married name.

My state return actually got rejected too, but I'm in Texas so we don't have state income tax - it was just for my property tax stuff. I had to fix that one separately. If your state return already went through with your married name, you might want to call your state tax agency and ask them what to do. Some states are more laid back about the name matching than the IRS is. The important thing is that your social security number is consistent on both returns!

Thanks for sharing this - makes me feel a bit better. Did you have to pay a lot in penalties when you amended for those stock gains? And how long did the whole amendment process take?

The penalty wasn't bad at all - I think it ended up being around $80 plus some interest on the unpaid tax. So all in maybe $120 extra beyond what I would have paid originally. The amendment took about 3-4 months to process completely, which I hear is actually pretty fast for the IRS these days. Just make sure you keep copies of absolutely everything you submit and proof that you sent it (certified mail is good).

This isn't always true - I tried to amend through TurboTax and they wanted to charge me for the "deluxe" version even though my original filing was free. Ended up having to pay like $60.