Just want to add a quick point - make sure you file your state tax return too if you worked in a state that collects income tax! People often forget this part. The camp was probably in a specific state that might have its own filing requirements separate from the federal return.

I work for a tax resolution firm and deal with these situations regularly. The good news is that your case is very straightforward and won't impact your ability to travel on ESTA. For a $160 tax liability from 2018, you're looking at roughly $300-400 total after penalties and interest - still very manageable. The key is getting this resolved proactively rather than waiting for the IRS to come after you (which honestly might never happen for such a small amount). Here's what I'd recommend: File Form 1040NR for 2018 as soon as possible. You'll need your W-2 from the camp, so definitely contact them or CCUSA first. If you can't get it, request Form 4506-T from the IRS to get a wage transcript. Most importantly - small tax debts like this are NOT immigration issues. The State Department and IRS are completely separate systems. I've never seen anyone denied entry over a resolved tax matter of this size. Just make sure you have documentation showing you've addressed it when you travel. The depression and financial hardship you mentioned might even qualify you for some penalty relief if you can document those circumstances. The IRS has "reasonable cause" provisions that can reduce penalties in situations like yours.

Just wanted to add another perspective here - I'm a CPA who specializes in small business tax compliance, and I see this confusion all the time. The key thing many business owners miss is that your state's rules on surcharges can be very different from federal guidelines. A few important points to consider: 1. **Documentation is crucial** - Whatever method you choose, make sure you can clearly explain your calculation methodology to auditors. Keep records of your state's specific guidance. 2. **Merchant agreement compliance** - Your credit card processor's terms may have specific requirements about how surcharges are calculated and disclosed. Some processors don't allow surcharges on the tax portion at all. 3. **Regular rate updates** - Tax rates change, and if you're hardcoding calculations, make sure you have a system to update them promptly. 4. **Consider the administrative burden** - Sometimes the simplest compliant method is worth more than trying to optimize every penny of processing costs. I'd strongly recommend getting written confirmation from your state tax authority about your specific calculation method before implementing it. The peace of mind is worth the effort, especially if you're processing significant volume.

As someone who's been through this exact headache, I want to emphasize what Emma mentioned about merchant agreement compliance - this is HUGE and often overlooked! I spent weeks figuring out the perfect tax calculation only to discover my payment processor (Square) actually prohibited surcharges on the tax portion entirely. Had to completely restructure my approach. Here's what I learned the hard way: **Before you implement ANY surcharge method:** 1. Read your merchant agreement thoroughly - some processors have specific rules about what can be surcharged 2. Check if your state allows surcharges at all (Connecticut, Massachusetts, and a few others still prohibit them) 3. Verify disclosure requirements - some states require specific wording, font sizes, or placement **My current setup (after trial and error):** - Product price: $100 - Sales tax (8.25%): $8.25 - Subtotal: $108.25 - Processing fee (3% on product only per my processor): $3.00 - Final total: $111.25 Yes, I don't fully recover processing costs on the tax portion, but it keeps me compliant with both state law and my merchant agreement. The small loss is worth avoiding potential fines or account termination. The cash discount approach Malik mentioned is brilliant if you can make it work logistically. Wish I'd known about that option earlier!

I just wanted to add some reassurance here - I received my Austin letter about 3 weeks ago and it was indeed a 5071C verification notice. The whole experience was much less stressful than I anticipated! A few practical tips based on my recent experience: 1. When you get the letter, don't panic if the deadline seems tight - they actually give you 30 days from the letter date, not the date you receive it 2. I recommend trying the online ID.me route first since it's available 24/7, unlike the phone lines 3. Have your tax return handy during verification - they might ask you to confirm specific amounts from your filing 4. If you're married filing jointly, only the primary taxpayer needs to complete the verification My verification was completed online in about 35 minutes (including multiple attempts at getting decent photos), and I saw the 570 hold code removed from my transcript exactly 6 business days later. Refund hit my account 3 days after that. The IRS has definitely streamlined this process compared to previous years. While it's frustrating to have the delay, the actual verification steps are pretty straightforward now. Good luck and try not to stress too much about it!

Based on your timeline and description, this is very likely to be a 5071C identity verification letter from the IRS. The Austin Service Center is indeed one of the main facilities that handles identity verification correspondence, and your 15-day timeframe from acceptance to letter generation is pretty typical for these cases. A few things to prepare for while you wait: 1. **Gather your documents now**: You'll likely need a government-issued photo ID (driver's license or passport), your Social Security card, and a copy of the tax return in question 2. **Check your transcript one more time**: Look for any new transaction codes that might have appeared since your last check - specifically TC 971 with Action Code 522 or 524, which would confirm identity verification requirements 3. **Consider your verification options**: Online through ID.me is usually fastest (available 24/7), but you can also verify by phone or schedule an in-person appointment at a Taxpayer Assistance Center The good news is that this process has become much more streamlined over the past couple of years. Most people who complete online verification see their refund released within 7-10 business days. While the delay is frustrating, it's become a fairly routine part of the process for many taxpayers. Don't stress too much - the letter will have very clear instructions on exactly what you need to do. Keep us updated on what you receive!

Great question! I went through this same situation a couple years ago. You absolutely can split the mortgage interest deduction when filing separately, but documentation is key. Since you're paying from a joint account that you both contribute to equally, a 50/50 split should be fine. Just make sure you keep good records showing your equal contributions to that joint account - bank statements, pay stubs, etc. The IRS wants to see that you can substantiate your portion of the payments. Also keep in mind that even though the Form 1098 might only show one of your names, you can both claim your respective portions as long as you can prove you both paid. One tip: consider using tax software that can handle MFS situations properly, or at least double-check your work. The interaction between splitting deductions and the requirement that both spouses must itemize if one does can get tricky to navigate correctly.

This is exactly the situation my husband and I were in last year! We also pay from a joint account and were really worried about getting it wrong. After doing a ton of research, we ended up splitting our mortgage interest 50/50 on our separate returns since we contribute equally to the joint account. One thing I'd definitely recommend is running the numbers both ways (joint vs separate filing) before you commit to MFS. We almost lost money overall because of all the credits and deductions you can't take when filing separately. In our case, filing separately only made sense because of some specific income-based student loan considerations. Also, keep really good records! We created a simple spreadsheet showing our deposits to the joint account throughout the year, just in case. The IRS never questioned it, but having that documentation gave us peace of mind. Your accountant's advice sounds right to me - splitting based on actual contribution is the correct approach.

Has anyone used TurboTax for this? Do they handle HSA excess contributions properly? I'm in a similar situation with about $45 in excess contributions.

I went through something very similar last year with multiple HSA accounts due to employer changes. For your $16 excess, you're absolutely making the right call to just pay the 6% tax - it's only going to cost you about $0.96. One thing to keep in mind: if you don't correct the excess contribution, you'll technically owe that 6% tax each year until the excess is removed. However, given how small the amount is, even paying it for several years would cost less than the time and hassle of trying to coordinate distributions from closed HSA accounts. For future reference, if you ever have a larger excess contribution, you can also "absorb" it by contributing less than your annual limit in a subsequent year. The excess essentially gets offset against your unused contribution room. But again, for $16, just paying the tax is definitely the path of least resistance. Make sure to keep good records of this excess contribution and the tax payments in case the IRS ever asks about it down the road.