One more thing to consider is state taxes! Depending on which state you moved to, the rules for residency and taxation of foreign income can be completely different from federal. Some states don't recognize the federal first-year election and will still treat you as a part-year resident regardless.

This is such a helpful thread! I'm in a very similar situation - moved from Mexico to the US on a TN visa in August 2023. I've been trying to figure out whether to make the first-year election or file as dual-status. One thing I'm wondering about that hasn't been mentioned yet: how does the timing of when you moved affect the decision? Since I only had 5 months as a US resident vs Brianna's 8 months, would that change the math significantly? I'm thinking the shorter period might make dual-status more favorable since I'd have less worldwide income to report during the resident portion. Also, for anyone who's used the tax analysis tools mentioned above - do they take into account the different tax brackets and how your income distribution throughout the year affects the optimal choice? My income was higher in Mexico during the first 7 months compared to my US salary for the last 5 months, so I'm trying to figure out if bunching all that higher income into the US return (with the first-year election) would push me into higher brackets unnecessarily.

One thing nobody mentioned yet - if you're looking at MAGI for premium tax credits (healthcare.gov stuff), the calculation is slightly different again! For that version of MAGI, you take your AGI and add back: - Tax-exempt interest - Excluded foreign income - Non-taxable Social Security benefits I learned this the hard way when I miscalculated and had to repay some premium tax credits at tax time. Make sure you're using the right MAGI calculation for what you're trying to figure out!

Don't forget that 401k traditional contributions reduce your MAGI (they're pre-tax), but Roth 401k contributions don't (they're after-tax). This tripped me up last year. If you're close to the Roth IRA phase-out threshold, you might want to put more in your traditional 401k to lower your MAGI and stay eligible for the Roth IRA. Kinda counter-intuitive but it works!

Same boat here. 570/971 gang rise up lololol

The two 570 codes with the same date is definitely unusual - I've been following tax stuff for years and typically see just one 570 when there's a hold. This could indicate your return triggered multiple review flags simultaneously. The 971 notice will be key to understanding what specific documentation they need. In my experience, EIC reviews with dependents usually focus on verifying custody/residency requirements. Check your mail daily and respond quickly to any IRS correspondence - that's the fastest way to get these holds released. The April date for your EIC suggests they're planning to process it, they just need to complete their verification first.

Has anyone used TurboTax to figure this out? I'm in a similar situation and wondering if the software will help determine what "year" I'm in or if I need to figure it out myself beforehand.

This is such a common confusion! I went through the exact same thing a few years ago. The key thing to understand is that the IRS doesn't care about how many calendar years you've been taking classes - they care about your academic progress. Since you mentioned you've never claimed education credits before and have been taking classes "here and there" without a formal degree program, you're likely still eligible for the American Opportunity Credit if you haven't completed the equivalent of 4 academic years (roughly 120 semester credits). I'd recommend getting a transcript from your community college that shows your total completed credits. Then you can use the rough guideline: 0-30 credits = 1st year, 31-60 = 2nd year, 61-90 = 3rd year, 91-120 = 4th year. Even if you've been taking classes for 6+ calendar years, if you're only at 60 credits, you'd be considered in your 2nd year for tax purposes. The American Opportunity Credit is worth up to $2,500 per year and is partially refundable, so it's definitely worth figuring out if you qualify rather than defaulting to the Lifetime Learning Credit!

Just want to add that capital losses from collectibles can offset capital gains from collectibles. So if you sold some items at a loss and others at a gain, you might end up owing less tax. The hard part is proving what you originally paid if you don't have receipts.

I've been dealing with this exact situation and wanted to share what I learned from my research and talking to a tax professional. The key thing to understand is that there's a difference between selling personal items at a loss (which most garage sale items are) versus selling collectibles that have appreciated in value. For your garage sale items, if you're selling personal belongings for less than what you paid, there's generally no tax consequence. The IRS considers these personal losses, which aren't deductible but also aren't taxable income. For collectibles that have increased in value, you do need to report the gains. The tricky part about not having receipts is real, but the IRS allows "reasonable estimates" of your cost basis. You can research what similar items sold for when you originally bought them using price guides, auction records, or inflation calculators. One thing that surprised me: collectibles are taxed differently than stocks - they're subject to a maximum 28% rate rather than the lower long-term capital gains rates. So it's worth tracking these separately. As for whether the IRS will "come after you" for small amounts - while technically all income should be reported, enforcement resources are typically focused on larger discrepancies. That said, with new 1099-K reporting requirements lowering to $600 in 2025, there will be more paper trails for online sales.