The 60-month calculation can be tricky, but it's worth getting right since it could save you hundreds or even thousands of dollars. You need to track your actual days of physical presence in the US, not just calendar time. Start with your initial entry date on F1 status and count forward 60 months (1,826 days), but subtract any days you were outside the US during that period. Those summer trips home definitely count against your presence, so if you were gone 3 weeks each year for 5 years, that's about 105 days total that would extend your exemption period. You can request your I-94 travel history from CBP's website (i94.cbp.dhs.gov) to get exact entry/exit dates if you don't have detailed records. This will give you the precise date when your FICA exemption ended. Given that your employer is just now discovering this issue, I'd be surprised if they did the calculation correctly the first time. Most HR departments just assume calendar years rather than doing the actual day-by-day count. Definitely worth double-checking their math!

This is such a common issue with F1 visa holders! I work in payroll for a university and we see this mistake happen frequently, especially with smaller employers who aren't familiar with the 5-year exemption rules. A few additional things to consider that haven't been mentioned yet: 1. If your employer is calculating interest or penalties on what you "owe" them, push back on this. The IRS penalties and interest are their responsibility since they made the withholding error, not yours. 2. Make sure they're using the correct wage base for FICA calculations. There's a Social Security wage base cap each year (it was $142,800 for 2021, $147,000 for 2022, etc.), but Medicare has no cap. If you earned above these amounts, the calculation gets more complex. 3. Your employer should also be correcting their quarterly 941 forms for each affected period. This isn't just about getting money from you - they have compliance obligations to the IRS that need to be addressed properly. 4. Consider asking for documentation showing exactly how they calculated your exemption end date and the amounts owed. Given the complexity around the 60-month physical presence test that others mentioned, there's a good chance their initial calculation is wrong. The good news is this is fixable, and you have more leverage than you might think since it was their mistake to begin with!

I want to emphasize something that hasn't been mentioned enough in this thread - the importance of getting the EXACT assessment dates for each tax year from the IRS. Many people assume the CSED is calculated from when they filed their return or when the IRS sent notices, but it's actually calculated from the assessment date, which can be different. Your aunt should request Account Transcripts for each tax year (2017, 2018, 2019) directly from the IRS. These will show the precise assessment dates and any tolling events that have already occurred. You can get these online at irs.gov, by calling the IRS, or by mailing Form 4506-T. Given the complexity of her situation with multiple properties and an ex-husband involved, there's a real possibility that some years have different CSEDs due to amended returns, audit adjustments, or other factors. I've seen cases where people thought they had 2-3 years left to wait, only to discover that one tax year was actually expiring much sooner or had already been extended. Another critical point: if your aunt passes away before the CSED expires, the tax debt becomes a claim against her estate. At her age, this is unfortunately something to consider in the planning process. The liens would attach to her assets and could force the sale of her home to satisfy the debt. Before committing to any strategy, I'd really recommend she get those transcripts and have a qualified tax professional review them. The peace of mind from knowing exactly where she stands timeline-wise is worth the effort.

The advice about getting Account Transcripts is absolutely critical, and I want to build on that with some practical guidance. When you receive the transcripts, look for specific transaction codes that indicate tolling events: - TC 520/521: Bankruptcy filing (extends CSED) - TC 560: Offer in Compromise submission (suspends CSED) - TC 971 with Action Code 063: Collection Due Process hearing request (extends CSED) - TC 922: Installment agreement that waives statute (extends CSED) The transcripts don't always make tolling events obvious to non-professionals, so having someone experienced review them is crucial. I've seen cases where people missed a 2-day bankruptcy filing from years ago that added 2+ years to their collection period. Given your aunt's age and the stress this is causing her, I'd seriously consider the Currently Not Collectible route that others have mentioned. The emotional and health costs of living with this uncertainty for 6+ more years at her age may outweigh the financial benefits of waiting it out. CNC status would give her immediate relief from collection activities while still allowing the natural expiration of the liens. Also, since she's still on mortgages for multiple properties, the IRS has significant leverage. They could potentially force sales or demand payments from any refinancing proceeds. Getting proactive control of the situation through CNC status or a settlement might be preferable to hoping nothing triggers more aggressive collection action during the waiting period. The key is making an informed decision based on her actual timeline and circumstances rather than assumptions.

As someone who just went through this exact situation last year, I can definitely confirm what everyone else has said - you absolutely qualify as a full-time student for tax purposes! Your spring semester from January to May already meets the 5-month requirement, and the fact that your school maintained your full-time enrollment status during the internship semester (hence the full tuition) just solidifies your case. I was in a similar boat with a co-op program where I alternated between classroom semesters and work terms. The IRS really does go by your school's official classification, not whether you were physically sitting in lectures. Since your internship was school-registered and you were classified as a full-time student, you're completely in the clear. Don't let TurboTax's sometimes confusing prompts make you second-guess yourself - the software isn't always great at handling non-traditional academic programs. Trust the guidance from this thread and your school's classification. You've got this!

Just wanted to add my perspective as someone who works in university financial aid - we see these questions constantly during tax season! Your situation is actually very common with internship programs, and you're definitely overthinking it. The IRS full-time student test is pretty generous: you just need to be enrolled for what your school considers full-time for any part of 5 calendar months during the year. Your spring semester (January-May) already covers this completely, so even if there was any question about your fall internship status (which there isn't), you'd still qualify. The fact that you were charged full tuition during your internship semester is the clearest indicator that your school classified you as a full-time student throughout the year. Universities don't charge full-time tuition rates unless you're officially enrolled full-time in their system. For future reference, if you ever need documentation of your enrollment status, you can request an official enrollment verification letter from your registrar. This will clearly state your full-time/part-time status for any semester, which is exactly what the IRS would want to see if they ever had questions. But honestly, your situation is so straightforward that I wouldn't worry about it!

Has anyone successfully claimed both the lifetime learning credit AND used 529 funds in the same year? My wife is in grad school and we're trying to figure out the most tax-efficient way to pay for it since the AOTC isn't available for graduate education.

This is exactly the situation I was in last year! The key thing to remember is that you can't use the same dollar for multiple tax benefits, but you CAN strategically allocate your expenses. Since your 529 covered $7,800 in tuition, you can't claim the tuition deduction (Form 8917) on that amount. However, if you had ANY other qualified education expenses that you paid out-of-pocket - like required textbooks, lab fees, course materials, or even additional tuition beyond what the 529 covered - you can absolutely use those for the American Opportunity Tax Credit. The AOTC is usually much more valuable than the tuition deduction anyway (up to $2,500 credit vs. up to $4,000 deduction), so focus on maximizing that if you have any out-of-pocket expenses. Even if you only spent $500 on books, that could still get you a $500 credit through the AOTC. Make sure to keep all your receipts and document which expenses were paid by which source. The IRS is pretty clear about this in Publication 970 - you just need to show that you're not "double-dipping" on the same expenses.

Hey Gisselle! 😊 I'm dealing with almost the exact same situation right now and totally feel your stress! Filed back in February, went through the whole verification nightmare, and just recently got those same 570/971 codes after my transcript finally moved off that dreaded N/A status. From everything I've learned lurking in this community and talking to others going through this, the 570 code basically means they've put a temporary hold while doing additional review, and the 971 means you should be getting a notice in the mail soon explaining what's happening. The fact that your transcript actually updated and is showing real codes now is honestly huge progress - it means you're officially back in their system! Since you already completed verification (which is honestly the hardest part), they're probably just doing their final checks on your return - could be income verification, reviewing credits, or just standard post-verification processing. From what I've seen, the timeline after these codes can be super variable - anywhere from 2-10 weeks unfortunately, but most people seem to see movement within 4-6 weeks. Keep checking your transcript weekly for any new codes - you're looking for that beautiful 846 (refund issued) to eventually show up! I know the waiting game is absolutely brutal when you've already jumped through all their hoops, but you've gotten through the worst part already. Hang in there - you're definitely moving in the right direction! 🤞✨

Hey Gisselle! 😊 I totally understand how stressful those 570/971 codes can be after going through verification - the uncertainty is honestly the worst part! The good news is that your transcript updating from N/A to showing actual codes means you're officially back in their system and making real progress. The 570 code indicates they have a temporary hold for additional review, and the 971 means you should receive a notice in the mail soon explaining what they're looking at. Since you've already completed verification (which is honestly the hardest hurdle), they're likely doing their final review process - could be income verification, checking credits you claimed, or just standard post-verification processing. From what I've seen in this community, the timeline after these codes appear can vary quite a bit - anywhere from 2-8 weeks typically. I know that's a frustrating range, but it really depends on what specific review they're conducting. Keep checking your transcript weekly for any updates - you're looking for that magical 846 code (refund issued) to eventually show up! The notice should give you more specific details about what they're reviewing and any timeline. I know the waiting game is brutal when you've already done everything they asked, but you've cleared the biggest obstacle with verification. You're definitely on the right track - hang in there! 🤞💪