12 That's interesting! What country are you from? I'm wondering if this would apply to me too.

23 I'm from India, which has a comprehensive tax treaty with the US. Many countries have specific provisions for students and researchers in their tax treaties. The treaty provisions can sometimes override the general tax rules and provide more favorable treatment. You should definitely check if your country has a tax treaty with the US. If it does, read the specific articles that deal with students, teachers, and researchers. Form 8833 is used to disclose when you're taking a position on your tax return that's based on a tax treaty rather than regular tax law.

10 That's not completely accurate. For F-1 students, the exemption is for 5 calendar years, so days in the US don't count toward the substantial presence test for the first 5 calendar years. After that, F-1 days DO count. But for J-1 visa holders, it's only 2 years.

Thanks for this suggestion! Do you know how I would contact them or what qualifies as "financial hardship"? I'm definitely struggling financially because of this whole mess.

You can contact the Taxpayer Advocate Service by calling 877-777-4778 or by filling out Form 911 (Request for Taxpayer Advocate Service Assistance). Financial hardship can include things like being unable to pay basic living expenses, facing imminent eviction, or having utilities shut off due to inability to pay. In your specific situation with the earned income ban, if losing the Earned Income Tax Credit means you can't afford necessities, that would likely qualify. The TAS is particularly helpful in cases where normal IRS channels haven't resolved the issue or where there's an urgent need. They can sometimes expedite the appeals process too.

The IRS communication system is absolutely broken. I recommend requesting a detailed explanation by calling the number on your notice and specifically asking for the "examination report" that led to the determination. This usually contains more specifics than the initial notice.

Thanks for the tip! I'll tell my brother to ask for the examination report. Really appreciate it because we've been completely lost trying to figure out how to address something when we don't even understand what rules were supposedly broken.

Do you know if having unfiled tax returns (even when not required to file) can affect things like financial aid applications or student loans? I'm in a similar situation for 2017 and 2018.

Having unfiled tax returns typically won't affect financial aid if you weren't required to file in those years. Most FAFSA forms and financial aid applications have a checkbox indicating "not required to file" for this reason. However, if you were required to file (based on your income and status) but didn't, that could potentially create issues with financial aid verification processes. Some schools select students for verification and may ask for tax transcripts or non-filing letters from the IRS. If you're concerned, you might want to request a "Verification of Non-filing Letter" from the IRS for those years, which confirms you weren't required to file.

Yes, you were likely required to file for 2019. The filing requirement is based on your gross income, not your final tax liability. For 2019, dependents generally needed to file if they earned more than $12,200 in wages OR had unearned income over $1,100 OR if self-employment income was over $400. With $7,500 in wages, you technically may not have needed to file based on the earned income threshold alone. However, if you had any federal tax withheld (check your W-2 box 2), you would want to file to get that money refunded. The standard deduction would likely have eliminated your tax liability, meaning you'd get all withholding back.

Thank you for the clarification! I just checked my 2019 W-2 and I had about $850 withheld in federal taxes. So I guess I missed out on getting that back since it's now 2025 and the three-year window has passed? That really sucks... At least I know for the future.

That's really helpful - I just checked my 1099-B and you're right, the cost basis shown is way off! So I need to use Form 8949 and check box "B" to make this correction? Do I need to include any supporting documentation with my return to explain the adjustment?

You don't need to include any additional documentation with your return to explain the adjustment. The IRS is familiar with this situation for RSUs. Just make sure you keep records of your RSU grant documents, vesting schedules, and the fair market value on vesting dates in case you're ever audited. When completing Form 8949, you'll enter the information from your 1099-B in columns a through e, then in column f enter code "B" (for basis adjustment), and in column g enter the difference between your correct basis and what's reported on the 1099-B. This effectively adjusts the basis to the correct amount for calculating your gain or loss.

How far back can you amend returns for this kind of mistake? I think I might have done the same thing for the past 3 years 😬

I had no idea about these caps! I'll definitely look into that for our state. Do you know if these exemptions are something we can apply for retroactively? We bought in 2022 but never filed for any exemptions because we didn't know about them.

In most places, you can apply for exemptions like homestead retroactively, but usually only for the current tax year and maybe the previous year. It varies by location though. When you call your assessor's office, specifically ask about retroactive applications for exemptions. Also, if this is your primary residence and you've lived there since you purchased in 2022, make sure the county knows that. Sometimes they assess at a higher rate if they think it's a rental or second home. Just having the property correctly classified can make a big difference in your tax bill.

Good point. When I bought my house, the previous owner was a veteran with a disability exemption. My taxes were way higher than what they had been paying, but there was nothing wrong with the assessment itself. Just the exemptions changing.

That's really interesting and something I hadn't considered. The previous owners were an older couple who had lived there for about 15 years, so they might have had some exemptions we don't qualify for. I'll definitely ask about this when I contact the assessor's office!