Just wanted to add another data point for anyone reading this thread - I've been filing from Singapore for 5 years now and can confirm that foreign wages definitely go on Line 1a. One thing I learned the hard way is to make sure you're using the correct exchange rates when converting SGD to USD. The IRS requires you to use the Treasury Department's yearly average exchange rates (available on their website) rather than spot rates or your bank's conversion rates. This can make a meaningful difference in your reported income amount. Also, since you mentioned you're using tax software, double-check that it's properly handling the Singapore tax year vs US tax year difference. Singapore's tax year runs from January to December, but make sure you're reporting the right period's income on your US return. I made this mistake my first year and had to file an amended return. The Foreign Earned Income Exclusion should cover your full $58k income assuming you meet the physical presence test (330 days in Singapore during any 12-month period). Keep a simple spreadsheet tracking your days in/out of Singapore - it'll save you headaches later if the IRS ever asks for documentation.

Just want to echo what everyone else has said - your Singapore wages definitely belong on Line 1a of Form 1040, not Line 1h. I went through this exact same confusion when I first moved to Hong Kong for work. One thing that might help clarify the logic: Line 1a is for ALL wages and salaries, regardless of the source country. Line 1h is specifically for miscellaneous income that doesn't fit into any of the other defined categories on the form (like gambling winnings, jury duty pay, etc.). Your regular employment income from Singapore is still wages, just foreign wages. The fact that you'll be excluding it later with Form 2555 doesn't change where you initially report it. Think of it as a two-step process: first you report ALL your worldwide income in the appropriate sections, then you apply exclusions and credits to reduce your taxable amount. Since you're earning about $58k USD equivalent and have been in Singapore for 3 years, you should easily qualify for the full Foreign Earned Income Exclusion (assuming you meet the physical presence test). Just make sure your tax software is set up to handle foreign income properly - most major programs have specific workflows for expats that will walk you through both the initial reporting and the exclusion forms.

Have any of you seen cases where a disregarded entity was incorrectly issued a 1099 under its own EIN rather than the parent's? We did this accidentally last year and now I'm worried about potential penalties or issues when the parent files their return.

This is a really common source of confusion, and you're absolutely right to question this practice. What your client is doing - mixing disregarded entity EINs with parent W-9s - creates unnecessary complications and doesn't align with IRS requirements. The key issue here is that a disregarded entity, by definition, is ignored for federal tax purposes. Even if the disregarded entity has its own EIN (which it might need for state taxes, employment taxes, or banking purposes), for federal information reporting like 1099s, you must use the parent/owner's EIN. Your client should provide clean W-9s with: - Line 1: Disregarded entity name - Line 2: Parent/owner name - Part I: Parent/owner's EIN If they need you to track payments separately by disregarded entity for their internal purposes, that's fine - but the 1099s should still be issued under the parent's EIN. You might want to explain that using the disregarded entity's EIN could create matching problems when the IRS tries to reconcile the 1099s with filed tax returns, since the disregarded entity doesn't file its own return. I'd recommend having them provide corrected W-9s that follow standard IRS guidelines to avoid any compliance issues down the road.

Just want to point out something else - if he's receiving SSI (not SSDI), there's a very important distinction. SSI is not taxable and doesn't appear on tax returns at all. SSDI might be taxable depending on other income. Make sure you're entering his disability income correctly in the tax software. Also, depending on the twins' adoption situation, there might be an Adoption Tax Credit he could claim if this was a recent adoption. This credit has different rules than the Child Tax Credit.

This is such a frustrating situation that so many people face! I went through something similar with my brother who's on SSDI with two kids. One thing that really helped us was getting a clear understanding of ALL the credits he might qualify for, not just the big ones everyone talks about. Beyond what others have mentioned about the Credit for Other Dependents, there are sometimes state-level credits that have different requirements than federal ones. Also, double-check that TaxAct is calculating everything correctly. Sometimes tax software doesn't handle disability income situations well, especially when there are qualifying dependents involved. You might want to try running the same info through a different tax program (many offer free versions) to see if you get different results. The suggestion about earning just a small amount of income to cross that $2,500 threshold is really smart. Even something like selling items online occasionally or doing small odd jobs (within disability limitations) could make a huge difference in qualifying for credits. The math often works out where the tax credits far exceed any small reduction in benefits. Keep advocating for him - you're doing great by not just accepting the software's initial answer!

This thread has been incredibly informative! I'm dealing with a similar FSA/HSA overlap issue and wanted to share another resource that helped me understand the timeline complexities everyone's discussing. The IRS Publication 969 has a specific section on HSA eligibility that breaks down exactly how FSA coverage affects HSA contributions, including details about grace periods and carryovers that several people mentioned. What I found particularly helpful was the example scenarios they provide - one specifically addresses the situation where someone has FSA coverage for only part of the year. One thing I learned from Pub 969 that wasn't mentioned yet: if you're married filing jointly and your spouse has family HDHP coverage through her employer, you both need to be HSA-eligible for her to make family-level contributions. So even if she has the qualifying health plan, your FSA disqualifies the entire family from HSA contributions, not just you individually. This whole experience has definitely made me realize how complex these health account rules are. For 2025 enrollment, I'm planning to ask HR for a written summary of how our FSA options interact with HSA eligibility before making any decisions!

This is such a comprehensive discussion! I'm in a very similar situation and wanted to add one more consideration that might help others. If you're planning to drop your FSA for 2025 to allow HSA contributions, make sure to time any remaining 2024 FSA reimbursements carefully. Some employers require you to submit receipts by a certain deadline even if you have funds remaining, and you don't want to lose money you've already contributed. Also, I've seen some people mention they wish they had known about these rules earlier. For anyone reading this thread who might be in a similar situation for future years: many employers now offer "HSA-compatible" health plans alongside traditional options. If HSA eligibility is important to your family's tax strategy, it's worth asking your HR department during open enrollment if they offer high-deductible health plans that would make you HSA-eligible, even if your spouse has FSA coverage through her employer. The interaction between these accounts is definitely more complex than most people realize when they're just trying to save on healthcare costs!

Friendly reminder to everyone that the IRS is SEVERELY understaffed and underfunded! They're still dealing with backlogs from the pandemic and system limitations. The people answering phones are doing their best with limited resources. My sister works for the IRS and says amended returns are processed in the order received, but there are exceptions where returns get flagged for various reasons that require manual review. Sometimes these get stuck in queues waiting for available staff. Yes it's frustrating but the frontline employees aren't the ones creating these delays! They literally can't process returns any faster than the antiquated systems and staffing levels allow.

I completely understand your frustration - 9 months is definitely excessive for an amended return, especially when your 2020 amendment was processed quickly. Based on what others have shared here, it sounds like there might be a specific issue holding up your 2021 return that the phone reps aren't identifying. I'd strongly recommend trying multiple approaches simultaneously: 1. Request your account transcript online through the IRS website - this often shows processing codes and flags that phone reps don't mention 2. Contact the Taxpayer Advocate Service at 877-777-4778 - they're specifically designed to help with situations like yours where normal channels aren't working 3. Reach out to your Congressional representative's office - many have constituent services that can inquire directly with the IRS on your behalf The fact that you mentioned unemployment income and a change from HOH to married filing status might be relevant - sometimes these changes trigger additional reviews that can cause delays. When you call next, specifically ask if there are any "freeze codes" or "hold codes" on your account and request to speak with someone who can actually review your file rather than just check the general status. Don't give up - 9 months with no clear explanation is not acceptable, and you have legitimate options to escalate this beyond the standard phone support.