I haven't checked that! My home country is Malaysia - would that make a difference even if I'm determined to be a nonresident alien? And how do I find out what the specific treaty provisions are?

Yes, tax treaties can definitely make a difference! Malaysia does have a tax treaty with the US, and it can affect how certain types of income are taxed even as a nonresident. The IRS has Publication 901 (US Tax Treaties) that summarizes the provisions, but they're not always easy to understand. The treaty might give you special treatment for scholarships, fellowships, or certain types of income. You can find the basics on the IRS website, but the actual treaty text is more detailed. When you file your taxes, you'd need to fill out Form 8833 to claim any treaty benefits.

I used Sprintax last year as an F-1 student and it was pretty good. It's specifically designed for nonresident aliens so it asks all the right questions about visa type, entry dates, and tax treaties. It's a bit pricey compared to some other options but the peace of mind was worth it for me.

Did you have to do anything special to add that explanation letter when e-filing? Or did you just mail it separately?

I e-filed my return and then mailed the explanation letter separately with a cover page that had my name, social security number, and tax year clearly marked. I included a brief note stating it was supplemental documentation for my already-filed return. If you're using FreeTaxUSA like you mentioned, they also have a section where you can add notes or explanations directly in your e-filed return, which might be sufficient without needing to mail anything separately.

The federal threshold for 2023 was actually supposed to be $600, but the IRS delayed implementation and kept it at $20,000 and 200 transactions. But some companies might have already updated their systems for the $600 threshold before the IRS announced the delay.

Does the Closer Connection Exception apply even if you're on a work visa? I thought that was mainly for people who are here temporarily like students or those on visitor visas who stay too long and risk becoming resident aliens.

You're right about the Closer Connection Exception having limitations - it primarily applies to those who meet the substantial presence test but want to claim they have stronger connections to another country. For work visa holders like those on H-1B, L-1, etc., this exception generally doesn't apply because your visa status already defines you as a Non-Resident Alien. The exception is more relevant for people who are in the US on visitor visas, business trips, or certain students who exceed the substantial presence thresholds but maintain stronger ties to their home country.

Don't use regular TurboTax for NRA taxes! They have a separate product called "TurboTax for Non-Residents" but even that missed several treaty benefits for me. I had better luck with Sprintax which is specifically designed for international taxpayers and Non-Resident Aliens.

Thanks for the tip about Sprintax! I was about to buy regular TurboTax not realizing they had different versions. Did Sprintax help you understand why you owed taxes or just complete the forms? I'm trying to avoid a big tax bill next year.

Thank you so much for sharing this! It helps knowing someone else in a similar situation got a comparable refund. Did you have to provide any extra documentation when you filed? I'm still nervous about getting flagged for review.

Nope, didn't need any special documentation when filing. Just make sure you have everything on hand in case they do request verification later. For me, that meant keeping my kids' social security cards, school records showing they live with me, receipts for education expenses, and all my income documents in a folder. I filed in early February and already received my full refund by direct deposit about 2 weeks later with no issues. The system is designed to help working parents like us - these aren't loopholes, they're intentional benefits we qualify for!

This is good advice. I've seen people get excited about huge refunds only to find they entered $12,000 withholding instead of $1,200 by accident.

Thanks for the suggestion - I just doubled checked all my W-2 entries and the withholding amounts. Everything looks correct! My total federal withholding was about $4,800 for the year, so most of the refund is actually coming from the credits, not from over-withholding. It's still hard to believe though!

Thanks for confirming this! So what would you recommend I do now? Should I just request an amended return or should I also file a complaint? I don't want to overreact but I'm also pretty upset about this.

You should definitely request an amended return with the additional information you have. This is your right and will get you the full refund you're entitled to. Regarding filing a complaint, that depends on how the preparer responds when you confront them about this issue. If they acknowledge their mistake, take responsibility, and fix it promptly without charging you additional fees, you might give them a second chance. However, if they're defensive or dismissive, then yes, I would file a complaint with the appropriate body depending on their credentials (IRS, state board, or professional organization).

Same happened to me, but I used FreeTaxUSA for the amended return and it made the process a lot easier. Their interface walks you through exactly what changed from the original return.