Just completed my ID verification yesterday after getting the CP01 letter. Reading through everyone's experiences here, it sounds like I should expect 2-3 weeks based on the current backlog. @Sofia Rodriguez thanks for explaining the two-phase process - that really helps understand why it takes so long even after verification is "complete." Going to start checking my transcript daily for that 571 code you mentioned @Ava Thompson. Fingers crossed it doesn't take the full month that some people are experiencing!

I'm in the exact same boat! Just verified last Tuesday and checking my transcript obsessively. Based on what everyone's sharing here, it sounds like we're all part of the same frustrating waiting period. The two-phase explanation makes total sense - wish someone had told me that upfront instead of just saying "9 business days" like the letter implied. Has anyone found that calling actually speeds things up, or is it just a waste of time? Seems like @Dylan Hughes had some luck with that callback service, but I'm hesitant to pay extra when I've already been waiting this long.

Has anyone considered the potential gift tax implications here? If the interest rate you're charging is below market rates, the IRS could view the difference as a gift subject to gift tax. Though at 10% that's probably not an issue in this case.

One thing I haven't seen mentioned yet is the passive activity loss rules. Since you're essentially operating as a lender for profit, you need to consider whether this qualifies as a passive activity under IRC Section 469. If the IRS classifies your lending activity as passive, it could limit your ability to deduct the interest expense against other types of income. The key factor is whether you're "materially participating" in the lending activity. For a single loan like this, you probably won't meet the material participation tests, which means any net loss from the activity (your $8,125 interest expense minus your $12,500 interest income) would be subject to passive activity limitations. In your case, since you're making a profit ($4,375 net), this shouldn't be an issue. But it's worth understanding these rules in case you expand into more lending activities or if your interest rates change. You might want to consult with a tax professional who specializes in investment activities to make sure you're structuring this correctly from the start.

One thing I haven't seen mentioned yet is that you should also consider any other income sources when setting up your W-4. If you receive alimony, have freelance work, investment income, or even unemployment benefits from your recent job gap, that could affect your withholding needs. Since you mentioned being unemployed for a few months, make sure you account for any unemployment compensation you received this year when figuring out your withholding. Unemployment benefits are taxable income, but taxes aren't automatically withheld unless you request it. This could mean you need slightly more withheld from your new job to cover the tax on those benefits. The IRS has a withholding calculator on their website (irs.gov) that can help you factor in all income sources, but honestly the third-party tools others mentioned might be easier to use. Just make sure whatever you use accounts for your full year income picture, not just your new job salary. Congrats on the new job, by the way! Getting back to work after unemployment can be stressful enough without having to worry about tax withholding too.

Just want to echo what others have said about selecting HOH on your W-4 - you absolutely should since you qualify! I made this switch last year and saw an immediate difference in my take-home pay. One additional tip I haven't seen mentioned: make sure to keep documentation that proves your kids lived with you for more than half the year. This includes school enrollment records, medical records showing your address, any custody agreements, etc. I know it seems obvious since you have full custody, but it's good to have this stuff organized just in case. Also, don't forget that as HOH with two kids, you'll likely qualify for the Child Tax Credit and possibly the Earned Income Tax Credit too, depending on your exact income. These credits can be worth thousands, so it's definitely worth getting your withholding right to avoid a big tax bill or giving the government an interest-free loan. The fact that you're thinking about this proactively with your new job shows you're on the right track. So many people just fill out the W-4 once and never revisit it, even when their life situation changes dramatically!

I'm also a non-resident alien dealing with 1040NR filing, and this thread has been a goldmine of information! I'm from Australia and have US-source rental income from a property I inherited. The rental income situation seems more straightforward than consulting work, but I'm still nervous about getting the depreciation calculations right and understanding how the US-Australia tax treaty applies to rental income. One question for the group - has anyone dealt with reporting rental income as a non-resident? I'm particularly confused about whether I can deduct property management fees and repairs the same way US residents can, or if there are different rules for non-residents. The IRS publications aren't super clear on this distinction. Also, I see several people mentioning getting connected to IRS agents for specific questions. Given that I'm calling from Australia, the time zone difference makes this even more challenging. Has anyone from Australia or similar time zones had success with the Claimyr service that was mentioned?

This thread has been incredibly helpful for understanding the current landscape of 1040NR filing options! As someone who's been following this space closely, I wanted to add a few additional considerations that might help others: For those dealing with multiple income sources (like combining W-2, 1099, and rental income), make sure whatever service you choose can handle the complexity. Some of the newer AI-powered tools are getting better at this, but it's worth testing with a simple scenario first if you're unsure. Also, don't forget about state tax obligations! Several states have specific rules for non-residents that can be quite different from federal requirements. California, New York, and a few others are particularly strict about sourcing rules for non-resident income. One thing I'd emphasize is keeping detailed records of your time in the US if you're anywhere close to the substantial presence test threshold. Even if you're clearly a non-resident this year, having good documentation helps if your status changes in future years or if there are any questions during an audit. For those mentioning VITA services - this is a great free option, but do call ahead to confirm they have volunteers trained on non-resident returns. The training requirements are more specialized, so not every location offers this service. Thanks to everyone who shared their experiences with specific services and tools. It's really helpful to hear real-world feedback rather than just marketing claims!

Anyone using a particular tax software that handles rental property improvements well? I've been using TurboTax but it doesn't seem to give much guidance on the "placed in service" questions for multi-unit properties with different renovation timelines.

Just wanted to add one more consideration - if any of your renovation work included accessibility improvements (like widening doorways, installing grab bars, or making units wheelchair accessible), those costs might qualify for immediate deduction under the disabled access credit rather than being capitalized as improvements. Also, since you mentioned electrical work for safety issues, be sure to document which repairs were done to bring the property up to local code requirements versus cosmetic upgrades. Code compliance work done immediately after purchase often has different treatment than general improvements. The documentation is key for all of this - keep photos of before/after conditions along with your receipts, especially for that upstairs unit where work spans tax years. The IRS likes to see clear evidence of when work was completed and when units became available for rent.