Thanks for the suggestion! How did you find your EA? Did you just google local tax professionals or is there a specific directory I should look at?

I found mine through the National Association of Enrolled Agents directory (naea.org). You can search by location and even by specialties like "back taxes" or "IRS representation." I'd recommend calling at least 3-4 of them for quotes and asking specifically about their experience with unfiled returns. Some will also offer free initial consultations where they can give you a ballpark estimate of what you might owe before you commit to hiring them.

This is a really important point. The failure-to-file penalty is 5% of unpaid taxes per month up to 25%, while failure-to-pay is only 0.5% per month. So filing even if you can't pay saves you 4.5% per month!

Are you saying I should just avoid French investment options entirely? That seems extreme just to avoid some paperwork. Are there any decent investment options that are compatible with both French and US tax systems?

I'm not saying avoid French options entirely, but you should be selective. The main investments to avoid are foreign mutual funds and similar pooled investments that get classified as PFICs. Look into individual stocks, bonds, or ETFs that are listed on US exchanges even if bought through a French broker (though finding one that accepts US citizens can be challenging). Some French banks have created US-compliant investment products specifically for Americans living in France. Another option is to use a US brokerage while living abroad. The paperwork is much simpler for US tax purposes, though you'll still need to report the investment income on your French taxes. The US-France tax treaty prevents double taxation in most cases.

This isn't relevant to the OP's situation. They said they were born in France and have lived there their whole life. There's no prior state residency to worry about.

Did you get your full refund eventually? And did they contact you during those 3 months or was it just radio silence while they were verifying?

Yes, I did get my full refund including the excess Social Security tax amount. They didn't adjust anything once they verified my information. During those 3 months, it was mostly radio silence. I kept checking the "Where's My Refund" tool, and it just said "Your refund is being processed" the entire time. I called once after about 2 months and was told it was in the verification department and I just needed to wait. Then one day the status suddenly changed to approved, and I got the deposit a few days later.

Thanks so much for this! I just checked my tax software and found the Schedule 3 section. You're right - there's a specific line for "Excess social security tax withheld" and it was really straightforward to enter. I was definitely overthinking this. After entering the information, my refund increased by the exact amount of my excess withholding. No need for Form 843 or contacting employers at all!

Just to add - make sure you keep good records showing your calculation of the excess amount. A friend of mine got audited for this (bad luck I guess) and needed to show how she calculated the excess amount from her multiple W-2s.

That's a really good point, I didn't even think about the company deducting it on their end. I'll definitely tell him to keep all the settlement paperwork and document everything. Would you recommend he send in any specific documentation with his tax return, or just keep it all on hand in case of questions?

I wouldn't send any extra documentation with the return itself. The IRS doesn't want that unless they specifically ask for it. Just have him keep all the settlement documents, correspondence, and proof of the payment amount in a safe place for at least 7 years (the extended audit timeline). Also, when he reports it on Schedule 1, Line 8z, he should write a brief description like "Breach of contract settlement" next to it. That shows transparency and makes it clear he's not trying to hide anything.

Sometimes companies refuse to issue 1099s for settlements because they don't want to admit liability. I had this happen and my accountant said to just report it anyway. The IRS cares more that YOU report income than whether THEY issued the proper form.

Can I even open my own bank account at 17 though? I thought you had to be 18 to do that without a parent.

Most major banks offer teen checking accounts starting around age 13-16, but they typically require a parent as a co-owner until you're 18. However, some credit unions and online banks have better options for minors with more privacy. Even with a joint account, your dad would technically be violating the account agreement if he took money that was clearly yours (like a tax refund) for his own use. You could also consider asking another trusted adult (like an aunt, uncle, or grandparent) to help you open an account instead of your dad.

What tax software did you use? I'm in the same situation and need something simple.