Wait what's the difference between 8840 and 8843? I've been filing wrong for years maybe??

Form 8843 is for J visa holders, students, and certain other nonimmigrant statuses to explain your presence in the US. It's required for everyone on those visas regardless of how many days you were in the US. Form 8840 is only for people who would otherwise meet the substantial presence test (183+ days using the formula) but want to claim they have a closer connection to a foreign country and should still be treated as nonresidents. They're often confused because of the similar numbers, but they serve different purposes. If you're on a J visa, you definitely need to file 8843, but you only need 8840 if you meet that substantial presence test and want to claim the closer connection exception.

Thanks for sharing your experience! Did Sprintax handle direct deposit of refunds well? That's important to me since I'll be leaving the US soon and want to make sure I get my refund.

Do you think this would affect different types of restaurants differently? Like would high-end places where servers make $300+ per night handle it differently than diners where tips might be way smaller?

Absolutely. High-end establishments would likely see even more dramatic effects. In fine dining where servers can make $70,000-$100,000 annually primarily through tips, the impact on lending, retirement, and benefits would be catastrophic. Their reported income would suddenly appear to be just $15,000-$20,000 on paper. Smaller diners and casual places would still see negative effects, but the dollar amount difference wouldn't be as extreme. However, servers at these establishments often rely more heavily on programs like EITC and healthcare subsidies, which are all income-based. So while the absolute numbers might be smaller, the relative impact on their financial lives could actually be worse.

I did the calculations for my situation. Last year I made about $42k total, with $35k from tips. I paid roughly $4,800 in federal taxes on that income. But I received $2,300 in EITC and child tax credits. I also qualified for a $1,200/month apartment based on that income and got approved for a car loan at 5.9% interest. If only my hourly wage counted ($7k), I'd save $4,800 in taxes but lose $2,300 in credits. Plus my apartment application would be rejected (they require income 3x rent) and my car loan interest would jump to 18.5% as a "high-risk" borrower. Not worth it at all.

Thanks for this suggestion! I tried the online transcript option but couldn't get through the identity verification (apparently my phone isn't registered in my name for some reason). I'll try requesting by mail, but I'm in a bit of a time crunch - do you know if there's any way to expedite that?

Unfortunately there's no way to expedite the mail transcript that I know of. The 5-10 business days is the standard timeframe. If you're in a time crunch, you might want to try one of the other suggestions like the Claimyr service to speak with an IRS agent directly, or see if you can find a copy of last year's return somewhere in your records or email. If you used tax software last year, definitely try logging into that account first - most services keep your returns available for several years. Even if you don't remember which service you used, try the major ones (TurboTax, H&R Block, TaxAct, etc.) with your email to see if you have an account.

This is exactly right! I work seasonal tax prep and we tell clients this all the time. AGI is always on Line 11 of the main 1040 form (at least for current forms). And yes, most tax software keeps your returns for several years - TurboTax keeps them for 7 years I believe.

That's really helpful info! Did she have to go through multiple appeals or did they accept everything after the first detailed submission with the Form 8862?

It took two submissions. The first one was rejected with a form letter, but she called (after struggling to get through) and spoke with an agent who advised her to resubmit with even more documentation and a more detailed timeline of the birth certificate delays. The second submission included everything from the first plus school enrollment records, health insurance coverage documentation, and a more detailed letter citing specific sections of the tax code related to qualifying children. That one was finally approved, though it took about 4 months to process.

I second this! The Taxpayer Advocate Service helped me resolve a much simpler issue when regular IRS channels were going nowhere. They're specifically designed to help with situations where the standard process isn't working due to special circumstances.

Thank you for this suggestion! I didn't even know the Taxpayer Advocate Service existed. Did you need to provide special documentation to them, or just explain your situation?

I had to provide pretty much everything - bank statements, my complete Venmo transaction history, my tax return, and the deficiency notice. The more documentation you have ready, the faster they can help. Make sure to explain that this is causing you significant financial hardship (which I'm guessing it is, given the amount). That helps them prioritize your case. They're understaffed but they really do try to help if they can see clear evidence that the IRS made a mistake.

This 100%. Document EVERYTHING. I had to reference previous conversation IDs several times during my deficiency dispute. Also send everything via certified mail so they can't claim they never received your documentation.