That's really helpful to know! Do you happen to remember what that special rule for the Earned Income Credit was called? I'd like to look it up so I can mention it specifically when I talk to another tax preparer.

The special rule relates to disability benefits that are taxable in the year you reach minimum retirement age. If you receive disability benefits from an employer plan and report them as wages, those can count as earned income for the EITC until you reach minimum retirement age. It's in IRS Publication 596 under "Disability Benefits and the EIC." The exact wording gets technical, but basically, if you're getting taxable disability benefits and haven't reached retirement age, you might qualify. It made a huge difference for my sister's refund.

I used FreeTaxUSA last year with SSDI and a dependent. It worked well and asked all the right questions about my disability income and how it was reported. They had specific sections for disability benefits and walked through all the potential credits. Don't use the totally free version though - spend the extra $7 or whatever for the deluxe version which gives you better support for credits and deductions. Saved me way more than that $7 in the end.

Thanks for the recommendation! I'll check out FreeTaxUSA. The $7 upgrade sounds worth it if it helps find all the credits. Did they handle state taxes well too or just federal?

9 months?! That's insane. Do you think there's anything that can be done to speed up the process? I was really hoping to get this refund before summer.

Unfortunately there's not much you can do to speed it up. International tax treaty claims get additional scrutiny because they're considered more complex. You can check the status of your amended return on the IRS "Where's My Amended Return" tool, but it just gives basic tracking info. If it's been more than 16 weeks since you filed, you can call and ask about the status, but they'll usually just tell you it's "in process." If you absolutely need the money sooner, you could look into getting a Tax Refund Advance loan from some tax preparation companies, but those usually have fees attached.

This is really important advice. I'd recommend looking at IRS Publication 901 (U.S. Tax Treaties) which breaks down the common provisions by country. The India-US treaty has specific provisions for students, teachers, and various types of income that all have different requirements.

I amended a return through TurboTax last year. If you used TurboTax for your original 2021 return, it's pretty straightforward - you can access your old return and make the amendment. If you used a different service originally, it gets more complicated. For something this specific, might be worth talking to a pro.

This is so true. Same thing happened to me but with medical bills. Had to put a $2,200 procedure on credit at 24% interest while my money was sitting with the government earning me exactly 0%. Never again!

That's a really good way to put it. I'm going to remember that one. Do tax preparers generally help with figuring out the right withholding amount?

Most definitely! A good accountant or tax preparer won't just file your return - they should help with tax planning throughout the year. Mine sends quarterly checkup emails to make sure my withholding is still on track based on any life changes (marriage, new job, etc). Just remember that their advice is only as good as the information you give them. If your situation changes significantly during the year (big bonus, side income, etc.), you should reach back out to adjust accordingly.

Is it better to track actual expenses or just use the standard mileage deduction? I've been keeping gas receipts but not sure if that's enough.

For most gig drivers, the standard mileage deduction is simpler and often more beneficial than tracking actual expenses. The standard rate (58.5 cents per mile for 2024) is designed to cover gas, maintenance, depreciation, and insurance, so you don't need to keep all those individual receipts. If you choose actual expenses, you need to track EVERYTHING - gas, oil changes, repairs, car washes, depreciation, insurance, etc., and then figure out the business percentage of use. You also need to keep meticulous records. For most people doing Instacart or Uber Eats part-time, the standard mileage rate is the way to go. Just make sure you keep a detailed mileage log with dates, starting/ending locations, miles driven, and business purpose.

Same thing happened to my boyfriend! Door dash sent him a 1099 even though he only made like $600, and he ignored it. Got a scary letter from the IRS six months later and ended up owing the original tax plus penalties. Not worth the stress.