I've used both! TaxSlayer has a better interface imo and I never had the AGI verification issue with them. Their deluxe version is like $40 and includes one state return which is way cheaper than TurboTax or H&R Block. FreeTaxUSA is cheaper but TaxSlayer's extra guidance was worth it for me.

Thanks for sharing your experience! The interface quality is important to me, and $40 including a state return sounds reasonable. Did you find TaxSlayer's guidance helpful for more complex tax situations? I have some investment income and a side business I need to report.

Interesting to hear you've had such a good experience! Do you think there might be something specific about certain tax situations that causes the AGI verification issues for some people? Also, have you ever had to amend a return with them, and if so, how was that process?

I think the AGI verification issues might be related to specific scenarios like amended returns or returns with unusual adjustments. Since my tax situation is complex but consistent year-to-year, that might be why I haven't had problems. I did have to amend a return once due to a late-arriving K-1 form. The amendment process with FreeTaxUSA was actually pretty straightforward. They walk you through which forms need to be updated, generate the 1040-X, and provide clear instructions for mailing the paper amendment. They don't offer e-filing for amendments, but that's true for most tax software since the IRS only recently started accepting e-filed amendments.

Thanks for bringing this up! Would I qualify for an Offer in Compromise with only $2,400 owed? I always thought that was for people with massive tax debts. My financial situation isn't great, but I do have steady income - just not enough extra to pay this all at once.

There's no minimum amount required for an Offer in Compromise, but with only $2,400 owed, it might not be your best option. The application fee is $205 unless you qualify for low-income certification, and the process can take 6-24 months with no guarantee of acceptance. In your situation with steady income, a long-term payment plan is probably more practical. The IRS will likely approve a 72-month plan with payments around $40-50 per month on your balance. That's much easier to manage and doesn't require the extensive financial documentation an OIC needs.

This is so important. My roommate ignored a $1,500 tax bill for almost 2 years, and by the time they finally dealt with it, it had grown to over $2,800 with penalties and interest. The IRS even started garnishing their wages which was way worse than just setting up a payment plan would have been.

Thank you for this detailed information. I've been worried about the 5-year rule. Since I started school in Fall 2013 and left in March 2019, have I already exceeded the 5-year limit for the student exemption? Or does it work by calendar years rather than academic years?

The 5-year rule works by calendar years, not academic years. So if you were first present as a student in 2013, then 2013, 2014, 2015, 2016, and 2017 would be your five exempt years. Starting in 2018, you would need to count days toward the substantial presence test. However, there's an important exception - you can still claim the exemption beyond 5 years if you can establish that you do not intend to reside permanently in the US and you have substantially complied with the requirements of your visa. Since you left the US and canceled your OPT, you have a strong case that you didn't intend to remain permanently, which might allow you to claim the exemption for 2018 and the partial year 2019 as well.

I tried using TurboTax for my international student filing and it was a disaster. It's really not designed for nonresident aliens or Form 8843. I ended up having to do it manually. H&R Block has slightly better options for international students but still limited.

Thanks for mentioning the interest part - I wouldn't have thought of that! Do you typically include bank statements or something to prove when we called the SSA? I'm trying to figure out what kind of documentation would be most convincing.

For documentation, phone records are helpful if you have them, but emails are better since they show the content of the communication. If you have any confirmation emails from when you registered the new employee with the SSA, definitely include those. Screenshots of the registration process showing dates are also useful. The postmarked envelope that contained your PIN is excellent evidence - keep that if you still have it! What really helps is creating a simple timeline document that lines up all your actions chronologically so the IRS can easily see your good faith efforts. The clearer you make it for them, the better your chances.

I did this for a different tax issue. The online setup was pretty easy but there's a small setup fee. I think it was like $130 for the online application but would have been more if I'd done it by phone or mail. Just be aware that interest continues to accrue on the outstanding balance throughout the payment plan.

Thanks for mentioning this! I actually did do some freelance work last year that I reported on Schedule C. Would I need to open a specific type of account for this SEP IRA thing? And does the contribution have to be from the freelance income specifically or can it come from my savings?

You'll need to open a specific SEP IRA account at a brokerage like Vanguard, Fidelity, or Schwab. Most have simple online applications and you can designate it as a SEP IRA during the account creation process. The contribution can come from any of your personal funds - it doesn't have to be directly from your freelance earnings. The important thing is that your contribution can't exceed 25% of your net self-employment income (after deducting expenses and the self-employment tax deduction). If you made $10,000 in net profit from freelancing, you could contribute up to about $2,500 to a SEP IRA which would directly reduce your AGI by that amount.

Qualified Charitable Distributions (QCDs) only work if you're 70.5 years or older, and they're made directly from your IRA to the charity. They don't technically reduce your AGI but they do reduce your taxable income. If you're younger, regular charitable contributions won't reduce AGI either - they're itemized deductions that come after AGI is calculated.