Thanks for bringing this up! I actually wasn't sure about Form 8833. Does everyone claiming treaty benefits need to file this form? The treaty amount isn't huge (around $6,500 total income with $1,950 withheld), so I wasn't sure if there's some minimum threshold.

Technically, not everyone needs to file Form 8833. There are exceptions based on the type of income and amount. Generally, if your treaty-based position is already disclosed on a W-8BEN form you submitted to the payer (which would normally be the case for standard treaty reductions on things like royalties, dividends, etc.), you might be exempt from filing Form 8833. However, there are specific situations that always require Form 8833 regardless of amount, such as certain business profits claims or if you're taking a position that's contrary to a U.S. regulation. In your case with $6,500 income and standard treaty withholding reduction, you might be exempt, but most tax professionals recommend filing it anyway to be safe. The penalties for not filing when required can be quite steep ($1,000 per position), so the safe approach is to include it.

This is actually incorrect information. The June 15th deadline is for US citizens and resident aliens living abroad, not for nonresident aliens. The 1040-NR is generally due on April 15th for most filers (or the next business day if it falls on a weekend or holiday).

You're right, I mixed up the rules. Thanks for the correction! Nonresident aliens filing Form 1040-NR generally need to file by April 15th (or the next business day if it falls on a weekend or holiday) for the previous tax year. The June 15th deadline applies to U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico. The important point still stands though - even if you missed the deadline, you can still file and claim a refund for up to 3 years from the original due date of the return.

Curious - how much more does a CPA typically charge compared to H&R Block?

It varies a lot based on complexity. When I just had W-2 income, my CPA charged about $350 compared to roughly $200 at H&R Block. Now with rental property and some business income, I pay about $750. The difference has been worth it though - my CPA found nearly $3,000 in deductions H&R Block missed the year before I switched. CPAs generally have more education and expertise, especially with complex situations. If your taxes are super simple, the price difference might not be justified, but with any complexity, a good CPA usually pays for themselves.

Thanks for sharing! How did you find your CPA? I'm nervous about just picking someone random.

What exactly counts as "active participation"? I handle most of the management stuff - finding tenants, dealing with maintenance calls, etc. But my brother handles most of the actual repair work. Do we both qualify?

Active participation is less stringent than material participation. For active participation, you need to make management decisions like approving tenants, deciding on rental terms, approving repairs, etc. You don't necessarily need to do the physical work yourself. Based on what you described, you would likely qualify since you handle the management aspects. Your brother would also likely qualify since he's involved in the actual maintenance work. Keep good records of the time you both spend and the decisions you make related to the properties. A simple log with dates and descriptions of rental-related activities is usually sufficient.

Is the QBI deduction still available? I thought that was part of the TCJA that was expiring soon?

That's terrifying! Did you end up actually having to pay the full $10k penalty? Were you able to get it reduced at all? I'm freaking out now because my accounts were inherited from my grandmother and I honestly didn't realize I needed to report them since the interest was only like $300.

I was eventually able to get the penalty reduced to about $1,200 after going through a formal appeal process and demonstrating it was an honest mistake. The key was that I voluntarily amended my return before they discovered it. In your case, with such a small amount of interest and the fact that you're correcting it immediately, you might qualify for a complete penalty waiver under their "reasonable cause" exception. Make sure you include a detailed letter explaining that you inherited the accounts, were unaware of the reporting requirements, and are now voluntarily correcting the oversight as soon as you discovered it. The IRS is more understanding with inherited accounts since many people don't realize the reporting requirements apply to those too.

That's actually incorrect advice. Form 14653 is only for U.S. persons who have been living abroad. Based on the original poster's mention of filing a California state return, they likely don't qualify for the Streamlined Foreign Offshore Procedures. They would potentially qualify for the Streamlined Domestic Offshore Procedures, which uses Form 14654, not 14653. However, even that program is generally for taxpayers who have failed to report foreign accounts for multiple years, not just a single oversight on a recently filed return. For a simple correction of a recent return where foreign interest was omitted, a standard 1040-X amendment is usually the appropriate approach, along with filing any required FBAR forms.

I tried to create an account but it wouldn't verify my identity because I don't have a credit card or loan history (I mostly use cash and debit). Is there another way to check?

You can request your transcript by mail if the online verification doesn't work for you. Go to IRS.gov and search for "Get Transcript by Mail" or use Form 4506-T. It takes about 5-10 days to arrive. Another option is to call the IRS automated transcript line at 800-908-9946. You won't speak to a person, but you can request that they mail your transcript. If you absolutely need to talk to someone, try calling the main IRS number (800-829-1040) early in the morning right when they open - that's usually when wait times are shortest.

They said in the post they filed electronically with H&R Block. Reading comprehension lol