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Based on what you've described, your dad is likely not required to file taxes. VA disability benefits are completely tax-free, and Social Security benefits are only taxable if total income exceeds certain thresholds (which seems unlikely given his situation). However, I'd strongly recommend having his situation reviewed just for peace of mind. Even if he's not required to file, there might be refundable credits he's missing out on - like the Additional Child Tax Credit if he has qualifying dependents, or potential refunds from any withholding on other small income sources. The key thing to remember is that the IRS doesn't penalize people who aren't required to file. If his income truly consists only of Social Security and VA benefits below the filing threshold, he's in the clear. But getting an official determination would eliminate your worry and potentially uncover any benefits he's entitled to claim.
This is really helpful information! I'm dealing with a similar situation with my elderly neighbor who's been worried about this exact issue. One thing I'm curious about - if someone has been receiving Social Security and VA benefits for several years without filing, and it turns out they weren't required to file anyway, is there any benefit to going back and filing those previous years' returns now? Or would it just be unnecessary paperwork at this point? I'm thinking about situations like what others mentioned - needing documentation for benefit applications or mortgage situations down the road. Would filing previous years help establish that paper trail, or is it better to just start fresh going forward?
Great question about filing previous years' returns! If your dad wasn't required to file and doesn't owe any taxes, filing previous years is generally optional but can be beneficial in certain situations. The main advantages of filing back years would be: 1) Creating an official income record for future benefit applications (as others mentioned), 2) Claiming any refunds or credits he might have missed (you generally have 3 years to claim refunds), and 3) Establishing a clear paper trail showing compliance. However, if his situation is straightforward - just Social Security and VA benefits below filing thresholds - the IRS already has records of his Social Security income from SSA reporting. The main decision point would be whether he needs those official tax documents for any current applications or peace of mind. I'd suggest starting with determining his current year filing requirement first, then decide about previous years based on whether there are specific benefits to gain. No rush on this decision since there are no penalties involved when no taxes are owed.
3 weeks is definitely frustrating but not unusual this year. The "Still Being Processed" message without a tax topic code usually means they're doing a manual review of something on your return - could be income verification, credits, or just random quality control. I've seen people wait anywhere from 4-10 weeks with this message. Try checking your account transcript online if you can access it - that'll give you more specific info about what's happening behind the scenes.
22 Has anyone dealt with the filing requirements for the French individual in this situation? Would they need to file a US tax return even though they're receiving dividends through a US LLC? I'm in a similar position (but from UK) and wondering what my obligations are.
8 Yes, the French individual would likely need to file Form 1040-NR (U.S. Nonresident Alien Income Tax Return) to report the dividend income, even though it's received through a disregarded LLC. They would also need to include Form 8833 if they're claiming treaty benefits that reduce the tax below what would otherwise apply. This is particularly important if they're claiming the 5% rate mentioned above instead of the standard 15% under the treaty.
I've been dealing with similar withholding complexities for our international shareholders and wanted to add a few practical considerations that might help. First, make sure you get the W-8BEN from the French individual well before the dividend payment date. The IRS requires that you have valid documentation in hand before you can apply the reduced treaty rate. If you don't have it, you're required to withhold at the full 30% rate, and then the individual would need to claim a refund later. Second, regarding the potential 5% rate mentioned above - be very careful here. The treaty language specifically refers to companies owning the required percentage, and there's ongoing debate about whether individuals can qualify for this rate even when owning through business entities. I'd strongly recommend getting professional advice before applying the 5% rate to avoid potential penalties. Finally, keep detailed records of your withholding analysis and the documentation you relied on. The IRS can review withholding decisions years later, and you'll want to be able to demonstrate that you made a reasonable, good-faith effort to apply the correct rate based on the information available at the time.
This is really solid practical advice, especially about getting the W-8BEN documentation in advance. I learned this the hard way when I had to withhold at 30% and then deal with the refund process, which was a nightmare for both me and the shareholder. One question though - what's the typical timeframe for getting a refund if you do end up over-withholding? And does the French individual need to file the 1040-NR in the same tax year as the dividend payment, or can they wait until they have all their documentation together?
Hey so random question but what software did you use to e-file your return originally? If you used TurboTax, TaxAct, etc. instead of just going through H&R Block, those services usually keep your returns available for download for several years!
I went in person to H&R Block and had them prepare everything. I didn't use any software myself, just handed them all my documents and they did it all. I don't think I have access to any software portal, just their customer website which isn't showing my complete return. I think I'm going to try the transcript route first before paying for the Form 4506, since several people mentioned that the transcripts might actually have all the info I need.
This is a really good point! I always recommend people file using one of the major software programs themselves rather than going to tax prep services. Not only do you save money, but you maintain access to your full returns typically for 5-7 years depending on the service. I've been using FreeTaxUSA for years and can still download complete returns with all schedules from 2016!
I went through this exact same frustrating experience last year! The IRS website definitely doesn't provide complete tax returns - only transcripts. But here's what worked for me as a fellow self-employed person needing documents for a mortgage: First, try getting both the Tax Return Transcript AND the Wage & Income Transcript from the IRS website. The Tax Return Transcript should show your Schedule C information (business income/expenses), while the Wage & Income shows all the 1099s and other income documents reported to the IRS. Before going the Form 4506 route (which takes forever and costs $43), call your mortgage lender and ask if they'll accept these transcripts instead. Many lenders actually prefer transcripts because they come directly from the IRS and can't be altered. If your lender insists on the full return, you might also try calling the IRS directly to ask about expedited processing for the Form 4506 due to your mortgage timeline - sometimes they can prioritize these requests. Just be prepared for long hold times when calling! Good luck with your mortgage application!
This is really helpful advice! I'm actually in a similar situation - just started the mortgage process and I'm self-employed with multiple 1099s. Quick question: when you got your transcripts, did they show all the details from your Schedule C like individual expense categories, or just the summary numbers? My lender specifically mentioned wanting to see the breakdown of business expenses, so I'm wondering if the transcript will be detailed enough or if I'll definitely need the full return.
Liam Mendez
I'm dealing with the exact same issue - filed on February 15th and it's been stuck on "still being processed" for over 6 weeks now. What's really frustrating is that I claimed the Child Tax Credit this year, which I've read can trigger additional reviews. I tried the transcript route that others mentioned, but like someone else said, the identity verification process is a nightmare. The credit card verification kept failing even though I was using the right information. At this point I'm wondering if I should just accept that it's going to take months, or if there's actually something wrong with my return that I need to address. The lack of transparency from the IRS is incredibly frustrating when you're depending on that money. Has anyone who had similar delays with child tax credits eventually gotten their refunds? I'm trying to figure out if this is just normal processing time or if I need to take action.
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Dylan Hughes
β’I'm in almost the exact same boat as you! Filed on February 18th with the Child Tax Credit and Additional Child Tax Credit, and I've been stuck on "still being processed" for about 5 weeks now. From what I've been reading on various forums, CTC claims are definitely getting flagged for extra review this year - apparently the IRS is being super cautious after all the fraud issues from previous years. I managed to get through to an IRS agent last week (after many failed attempts), and they told me that returns with child tax credits are taking anywhere from 8-12 weeks to process right now. The agent said this is unfortunately "normal" for this filing season, which is incredibly frustrating when you're counting on that money. The good news is that everyone I've talked to who had similar delays eventually did get their refunds - it just took way longer than expected. Hang in there, it sounds like we're both in the same processing queue!
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GalacticGuardian
I've been going through the exact same thing - filed on February 8th and have been stuck on "still being processed" for what feels like forever. The most frustrating part is how the tool gives you absolutely zero useful information beyond that generic message. After reading through all these comments, I'm actually feeling a bit better knowing I'm not alone in this. It sounds like the IRS is just completely overwhelmed this year and their systems aren't keeping up with providing real-time updates. What's really helped me is setting a reminder to check only once a week instead of obsessively checking daily like I was doing. The constant checking was driving me crazy and clearly wasn't going to make my refund appear any faster. For anyone else in this situation - it seems like patience is unfortunately our only option right now. The refunds are eventually coming through, just taking way longer than the advertised 21 days.
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