One important thing nobody's mentioned - be careful with the date you claim it became worthless. The IRS is very specific that you must claim it in the year it actually became worthless, not when you discovered it was worthless. From my experience, the reorganization transaction date (your Oct 17) is typically when the broker is recognizing it as worthless, but you should check if that's actually when the company bankruptcy was finalized or if something else happened on that date.

Based on your situation with HealthPlus (HPIQ), it sounds like you're dealing with a classic worthless security scenario. The "Reorganization - 950" transaction on 10/17/2024 is likely when your broker processed the stock as worthless following the bankruptcy proceedings. Here's what you need to do: 1. **Documentation is key** - Contact Schwab immediately and request a letter confirming that HPIQ became worthless on 10/17/2024. Also ask for account statements showing the stock before and after that date. Save any bankruptcy court documents or news articles about HealthPlus's final liquidation. 2. **Report on Schedule D and Form 8949** - You'll need to manually report this since it won't appear on your 1099-B. Use 10/17/2024 as your sale date (not 12/31/2024 as some suggest - use the actual date it became worthless), $0 as the sale price, and your original cost basis. Enter code "W" in column (f) on Form 8949. 3. **Capital loss treatment** - Your $15,800 loss will first offset any capital gains you have this year. Any remaining loss can be deducted up to $3,000 against ordinary income, with the rest carried forward to future years. The fact that HPIQ doesn't appear in Schwab's worthless securities lookup actually supports that it's been officially deemed worthless. Just make sure you have proper documentation before filing, as the IRS scrutinizes worthless security claims closely.

I went through this exact same situation last year and it was such a headache! What finally worked for me was getting everything in writing from the IRS about my specific treaty benefits before approaching my employer. I actually ended up calling the IRS International Tax line (though it took forever to get through) and had them send me a written confirmation of which treaty article applied to my situation and the exact exemption amount. When I brought this official documentation to my payroll team along with my completed Form 8233, they were much more willing to make the necessary ADP adjustments. One thing that caught me off guard - make sure your employer knows they need to keep a copy of your Form 8233 on file and that they're supposed to provide you with a copy of what they sent to the IRS. Some payroll departments just submit it and don't think to document it properly. Also, double-check your first few paychecks carefully after they make the changes. In my case, they initially set up the withholding incorrectly and were still taking out too much federal tax. It took another round of corrections to get it right. The learning curve is steep, but once it's set up correctly, it makes a huge difference in your take-home pay!

Based on everyone's experiences here, it sounds like there are several key steps for handling NRA tax treaty benefits in ADP: 1. **Start with Form 8233** - This is essential for claiming treaty benefits, not just the W4 2. **Get official IRS documentation** - Having written confirmation from the IRS about your specific treaty benefits gives you much more credibility with your employer 3. **Find the right department** - Look for a dedicated tax team rather than general HR/payroll 4. **Check for ADP's Treaty Benefits module** - Many companies don't even know this exists 5. **Document everything** - Keep records of all communications and forms submitted 6. **Monitor your paychecks closely** - Initial setups are often incorrect and need adjustment For those struggling to get through to the IRS, the services mentioned like Claimyr seem helpful for actually connecting with specialists who understand international tax treaties. The most important thing seems to be persistence and having the right documentation. Don't let your HR department tell you "they don't know how to handle it" - this is a common situation that they should be equipped to deal with, even if it requires some research on their part. Thanks everyone for sharing your experiences - this thread is going to help so many people navigate this confusing process!

As someone who works in tax preparation, I see this confusion about Notice 703 Line C come up constantly! You're definitely not alone in being confused by this. The key insight that helps my clients is understanding that the IRS is essentially asking two separate questions: 1. "How much Social Security did you receive?" (Line A, with Line B being half of that) 2. "What other taxable income did you have?" (Line C) Line C is exclusively for non-Social Security income sources. So when it says "total income that is taxable (excluding line A)," it's telling you to exclude ALL Social Security-related amounts - which includes both Line A AND Line B since Line B is derived from Line A. Your other income for Line C would include things like: - W-2 wages - 1099-R pension/retirement distributions - 1099-INT interest income - 1099-DIV dividend income - Self-employment income - Rental income - Capital gains The reason the IRS structures it this way is because Social Security has special taxation rules. They need to calculate your "provisional income" (Line E = B + C + D) to determine what percentage of your Social Security benefits will actually be taxable. This is completely different from how regular income is taxed. Hope this helps clarify the distinction! The form design is definitely not intuitive, but once you understand the underlying logic it makes more sense.

I'm so grateful for this thread! I've been staring at my Notice 703 for weeks trying to figure out this exact same Line C issue. Reading through everyone's explanations, I finally understand that Line C is ONLY for non-Social Security income sources. The "bucket" analogy from Lily really helped me visualize it, and Jacob's professional breakdown about the two separate questions the IRS is asking makes perfect sense. I was definitely overthinking it by trying to include Line B in Line C just because it's "taxable income." Now I see that the whole point is to keep Social Security calculations (Lines A and B) separate from everything else (Line C) so they can properly calculate provisional income. It's like the IRS needs to know "here's your Social Security" and "here's your other stuff" as distinct categories, then they combine them in their own special way to figure out taxation. Thanks to everyone who shared their experiences and explanations - this community is amazing for helping navigate these confusing IRS forms!

Reading through all these responses, I'm really glad I found this thread before submitting my forms! I was actually in the middle of reaching for the white out when I decided to search online first. Based on everyone's advice here, I'm definitely going to switch to e-filing. It sounds like the time I'll save avoiding potential IRS delays and complications will more than make up for the hour or so it'll take to re-enter my information into tax software. One question for those who've made the switch from paper to e-filing mid-process - did you find that the software asked for any information you hadn't already gathered for your paper forms? I want to make sure I have everything I need before I start so I don't have to stop halfway through to hunt down additional documents. Thanks everyone for saving me from what sounds like it could have been a major headache with the IRS!

I've been lurking in tax forums for years but had to create an account to chime in here. I work as a volunteer tax preparer through the VITA program, and I see this white-out question come up constantly during tax season. The short answer: absolutely do NOT use white-out on tax forms. The IRS processing systems are designed to scan forms cleanly, and correction fluid can cause your return to be automatically flagged for manual review, which adds weeks or months to your processing time. What I tell people in your situation: if you're comfortable posting questions online and following detailed advice, you're definitely capable of e-filing. The software will walk you through everything step by step, catch errors you might not even notice, and you'll get your refund in a fraction of the time. One pro tip - if you do switch to e-filing, don't just transfer your numbers blindly. Let the software guide you through the interview process because it often finds additional deductions or credits that people miss when filling out paper forms manually. I've seen people discover they qualified for credits worth hundreds of dollars that they would have missed otherwise. Your transposed W-2 income is exactly the kind of error that benefits most from e-filing - the software will verify your entries against common ranges and flag anything that looks unusual before you submit.

Don't forget to look into whether you qualify for the self-employed health insurance deduction! Even though your wife's employer provides the insurance, if you're paying any portion of the premiums (either directly or indirectly by reimbursing your wife), you may be able to deduct that amount on your Schedule C. I'm in a similar situation and was able to deduct about 40% of our family premium last year because that was determined to be "my portion" of the coverage. Talk to a tax professional about how to calculate and document this properly.

I've been following this thread closely since I'm in an almost identical situation - sole proprietor with coverage through my spouse's employer plan. Just wanted to add a few things that might help: First, definitely pursue the FSA option that Leo mentioned. We've been using one for three years now and it's been great for predictable expenses like glasses, dental work, and prescriptions. The key is to be conservative with your contribution since you can't roll over much to the next year. Second, on the self-employed health insurance deduction - this is real but requires careful documentation. You'll need a letter from your wife's HR department breaking down the premium allocation. In our case, the employer contributes $200/month toward employee-only coverage, but we pay an additional $450/month to add me and our kids. I can deduct a portion of that $450 as a self-employed person. One thing I haven't seen mentioned is that you can also deduct qualified medical expenses as business expenses if they're directly related to your work. For example, if you need ergonomic equipment for your home office due to a medical condition, that could be deductible. Obviously consult a tax pro for specifics. The bottom line is that while you can't get an HSA in your situation, there are still several ways to get tax advantages for healthcare costs as a self-employed person. It's worth spending some time (or money on professional advice) to make sure you're maximizing all available options.