Thanks for the suggestion! I don't think I qualify for EITC since I don't have kids and my income is a bit too high for a single person. I am taking the standard deduction though. It sounds like my real issue is the self-employment taxes on that gig income that I didn't plan for. Lesson learned for next year - I'll be setting aside money each month from my gig work.

Completely agree! TurboTax kept trying to upsell me to their $120 version to "maximize self-employment deductions." FreeTaxUSA found all the same stuff for like $15. And their interface actually explains things better too.

That's good to know! I felt like I was taking crazy pills when I switched and suddenly found all these deductions TurboTax never mentioned. Their basic version is practically useless for anyone with slightly complicated taxes. FreeTaxUSA actually walks you through the self-employment section with helpful explanations instead of dangling premium features in front of you constantly.

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 this! I've already gotten my Michigan driver's license, registered to vote, and changed my car registration. I kept my California bank account open though since they have locations in Michigan too. Should I still consider closing it to be safe?

You don't necessarily need to close the California bank account, but definitely make sure you've changed the primary address on the account to your Michigan address. Having a CA bank account with a CA address could be one factor they look at. The most important things are already done - driver's license, voter registration, and vehicle registration show your intent to permanently reside in Michigan. Also make sure your employer has your Michigan address for your W-2, and that any investment accounts are updated with your new address.

TurboTax Premium worked great for my CA to WA move. It walked me through allocating income between states and explained which income belongs where. It costs more than the basic version but worth it for multi-state situations.

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 bringing this up. I'm worried about how the 401K distribution might affect our Earned Income Credit. Do you know if retirement distributions count as income for calculating the EIC? We're really counting on that credit this year with our reduced income.

Yes, 401k distributions do count as income for calculating the Earned Income Credit, which is something to be aware of. The distribution could potentially reduce your EIC amount since it increases your AGI. However, it won't completely disqualify you if your overall income still falls within the EIC thresholds. For the Child Tax Credit, the same principle applies - the 401k distribution increases your income, which could affect the amount you receive if you're near a phase-out threshold. In your specific situation though, if you're truly below the poverty line even after counting the distribution, you'll likely still qualify for the full credits, but it's definitely something to watch when you're preparing your return.

Is fixing a foundation considered a qualified hardship though? I thought it was limited to preventing foreclosure, medical expenses, education, or first-time home purchases. I don't think home repairs qualify unless they were to repair damage from a federally declared disaster.