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Just want to add, if you do get the Wage and Income Transcript from the IRS, be aware that it won't show your state tax withholding! I made this mistake last year and had to go back and amend my state return. Make sure you still try to get the actual W2 copies from your employers for complete state tax information.
Same thing happened to my cousin with OneClickLife. They quoted him some ridiculously low refund amount. He ended up going to H&R Block instead and got over $800 more. These online services can be sketchy sometimes. Has anyone compared the fee structures? I wonder if OneClickLife is taking a percentage rather than charging a flat fee like most services do.
I used them last year and noticed they had a "processing fee" buried in their terms that was like 25% of the refund amount! Total ripoff. Read the fine print, folks.
For anyone looking for alternatives, I've been using FreeTaxUSA for the past few years and have been really happy with it. Federal filing is free and state is like $15. Super straightforward and they don't try to upsell you on stuff you don't need.
Thanks for the suggestion! I'll check that out. Have you ever had any issues with them calculating returns incorrectly or missing deductions?
I've never had issues with incorrect calculations. They walk you through everything step by step and explain what deductions you qualify for based on your inputs. They also have a comparison feature that shows how your return differs from last year so you can spot any major discrepancies. It's been super reliable for me even when my tax situation got more complex with some freelance work and investments.
Just want to add some context about international inheritance. If your uncle is a US citizen, he's required to report worldwide income and assets regardless of where he lives. The Foreign Bank Account Report (FBAR) requirements might also apply if he has financial accounts outside the US that exceed $10,000. Also, South Korea has its own inheritance tax which can be quite high (up to 50% for large inheritances). If he's avoiding taxes in both countries, that's a serious issue. If you decide to file Form 3949-A, focus on factual information about the unreported inheritance, estimated values, and timeline. The IRS is interested in the tax implications, not the family dispute aspects.
Thanks for this insight! Do you know if the IRS typically shares information with tax authorities in other countries? Like would they notify South Korean tax authorities if they find evidence of tax evasion related to property there?
Yes, the IRS does share information with many foreign tax authorities through tax treaties and information exchange agreements. The US and South Korea have a tax treaty that includes provisions for sharing tax information. If the IRS investigates and finds evidence of tax evasion involving South Korean properties, they may very well share that information with South Korean authorities. This is especially true for larger cases where significant tax revenue is at stake. Many countries have become much more cooperative in recent years to combat international tax evasion.
Don't forget that filing Form 3949-A is confidential, but not anonymous if you want to be eligible for a potential whistleblower award. If your info leads to collection of unpaid taxes, you might be eligible for a percentage. But be prepared for family fallout if they ever find out you reported them. I reported my brother-in-law years ago for not reporting a huge inheritance from his grandfather's estate in Italy, and while the IRS did follow up, our family hasn't spoken since.
One thing nobody's mentioned about WOTC - make sure you understand the overlap with Disabled Access Credit and Barrier Removal Deduction if you're making workplace accommodations for employees with disabilities. You can potentially stack these tax benefits! For high-skilled workers with disabilities, the WOTC is just one piece of the puzzle. When we hired a software engineer who uses a wheelchair, we claimed: - $2,400 WOTC credit - $5,000 Disabled Access Credit for workplace modifications - Significant deduction for removing architectural barriers The combined tax benefits far outweighed the costs of accommodations, plus we got an amazing developer.
This is super helpful! Can you use these credits every year or only in the year you hire someone? And do the accommodations have to be specifically for that employee or can they be general accessibility improvements?
The WOTC is only available for the first year of employment (and potentially the second year for certain veterans and long-term family assistance recipients). For the Disabled Access Credit, you can claim it every year you make eligible accommodations, up to the annual limit. The accommodations don't have to be for a specific employee - they can be general accessibility improvements that help multiple employees or customers. Things like wheelchair ramps, accessible restrooms, or adaptive technology can all qualify. The Barrier Removal Deduction similarly can be claimed whenever you make qualifying improvements to remove physical barriers. It's not tied to a specific employee but rather to making your business more accessible overall.
My company literally ONLY uses WOTC for low paying positions because it's more beneficial compared to the salary. For a $15/hour position, getting $2,400 back is significant. For a $150k developer, it's a drop in the bucket. We have a specific program targeting WOTC-eligible groups for our call center but not for engineering.
Zoe Stavros
14 Has anyone had success using H&R Block online for filing 1042-S as a resident alien? TurboTax seems to be failing me completely.
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Zoe Stavros
β’2 I tried H&R Block last year for my 1042-S and it was just as confusing as TurboTax. Ended up having to go to their physical office and pay extra for an international tax specialist. Not worth it imo.
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Zoe Stavros
β’14 Thanks for the feedback! That's disappointing to hear. Seems like the mainstream tax software just isn't equipped to handle these international student situations properly. I might need to look into some of the specialized services mentioned in this thread instead.
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Zoe Stavros
19 Quick side note that might help - check if there's a VITA (Volunteer Income Tax Assistance) program at your university. Many universities with international students have special VITA volunteers trained specifically on handling 1042-S forms and residency status changes. It's completely free and they might save you a lot of headaches!
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