I've been through a similar situation with my stepdaughter, and one thing that helped us avoid confusion was creating a simple spreadsheet to track both the nights she stayed with each parent and all the expenses. For the residency test, remember that college dorm time is treated as "temporary absence" - so those 5 months she's in university housing actually count toward whichever parent she would have lived with if not at school. Since you mentioned she splits break time based on her preference, you'll want to document where she actually stays during Thanksgiving break, winter break, and any other school holidays this year. The fact that you're covering 100% of her support from May forward is significant, but as others mentioned, you need to calculate the total yearly support from both parents. College expenses can add up quickly - tuition, room & board, books, personal expenses - so even though your ex had her for 4 months, if you're covering the major college costs for 8 months, you'll likely meet the support test. One suggestion: if possible, have a conversation with your ex about this before you both file taxes. It's much easier to sort this out between yourselves than to deal with IRS notices if you both claim her.

As a tax preparer who's dealt with many divorced parents claiming college students, I want to emphasize one crucial point that could save you headaches: get everything in writing with your ex BEFORE either of you file. The IRS has a specific tiebreaker rule for divorced parents - if both parents could technically claim the child, the custodial parent (whoever the child lived with for more nights during the year) gets priority UNLESS they sign Form 8332 releasing that right to the non-custodial parent. In your case, you need to determine two things: 1) Who had your daughter for more nights when she wasn't at school (college dorm time counts as temporary absence), and 2) Who provided more than 50% of her total yearly support. Even if you meet both tests, if your ex also meets them and is considered the "custodial parent" under IRS rules, she has the right to claim your daughter unless she signs Form 8332. Given the complexity of your situation with split custody during breaks, I'd strongly recommend either using one of the services others mentioned to get a definitive analysis, or contacting a tax professional before filing. The education credits alone (up to $2,500) make this worth getting right the first time rather than dealing with amended returns and IRS correspondence later.

This is an incredibly thorough discussion! As someone who works with international tax compliance, I want to add a few additional points that might help other Canadian developers: 1. **Documentation retention**: Keep copies of your submitted W-8BEN-E and any correspondence with Apple. The IRS can request these during audits, and having proper documentation of your treaty claim is crucial. 2. **Quarterly estimated taxes**: Don't forget that as a Canadian corporation earning US-source income, you may need to make quarterly estimated tax payments to the CRA. The reduced withholding from the treaty means less tax is being withheld upfront, so plan accordingly. 3. **Transfer pricing considerations**: If you have any related entities or if your business structure becomes more complex, be aware of transfer pricing rules. This isn't usually an issue for simple owner-operated corporations, but it's worth understanding if you plan to expand. 4. **State tax implications**: While the federal W-8BEN-E handles federal withholding, some US states have their own sourcing rules for digital products. Most don't tax foreign corporations on royalty income, but it's worth researching if you have significant revenue. The resources mentioned in this thread (taxr.ai for form guidance and Claimyr for IRS contact) seem to have helped several people navigate this successfully. Good luck with your incorporation!

Great thread! I went through this exact same process about 6 months ago when I incorporated my Canadian app development business. One thing I'd add that helped me immensely is to make sure you understand the difference between "beneficial owner" and "account holder" on the W-8BEN-E form. As a small Canadian corporation where you and your wife are the only shareholders, you're both the account holder (the corporation) and need to identify the beneficial owners (you and your wife as individuals). This distinction tripped me up initially because I thought I only needed to provide corporate information. Also, when filling out Part I of the form, make sure your corporation's legal name matches exactly what's on your Articles of Incorporation - not your "doing business as" name if you have one. Apple's system will flag any discrepancies. The whole process seems overwhelming at first, but once you get the W-8BEN-E submitted and accepted, it's smooth sailing. The 0% withholding rate makes a huge difference compared to the default 30%!

Anyone know if state taxes are automatically withheld from 401k distributions too? My mom in Florida doesn't worry about it but my aunt in California is retiring and wondering about state withholding on her 401k.

One thing that might help your mom is to understand that the W-4R form doesn't get filed anywhere - it's just her instructions to the 401k company about how much tax to withhold. Think of it like setting up automatic bill pay, but for taxes. Since she's new to retirement, I'd suggest she be conservative and have them withhold a bit more than the default 10%, especially if she has other income sources. It's better to get a refund than owe money at tax time. She can always adjust the withholding later once she gets a feel for her total tax situation. Also, don't forget that 401k withdrawals might affect how much of her Social Security benefits are taxable, so the tax picture can be more complex than it first appears. The IRS has some good publications on retirement income taxation that explain all this stuff in detail.

I've been battling this exact 428 error for about 6 days now and stumbled across this thread - what a lifesaver! After reading through everyone's detailed experiences and solutions, I decided to try the comprehensive approach that's emerged from this community. Last night I set up transcript access following Hattie's instructions, and this morning I tried the early morning strategy at 6:10 AM that Miguel, Sofia, Freya, and so many others have had success with. While I still got the 428 error on WMR, the transcript showed my return has been received and is processing with code 150 - what a relief! What's really impressed me is how this community has reverse-engineered better solutions than anything in the official IRS documentation. The pattern is so clear now: the 428 error is purely a system capacity issue during peak hours, not a problem with our actual returns. The transcript method provides the real status while WMR struggles with traffic. I'm going to keep trying the early morning window (seems like 5:30-6:30 AM EST is the sweet spot), and I'll also try the different network suggestion that ElectricDreamer mentioned - I've been using my work VPN which might be part of the problem. For anyone new to this thread: don't panic about the 428 error! Set up transcript access first for peace of mind, then try the early morning approach. This community has figured out what actually works when the official system fails us. Thanks everyone for sharing such practical solutions!

I've been dealing with error 428 for the past 3 days and this thread has been absolutely invaluable! Reading through everyone's experiences has completely changed my understanding of what's happening. Like many others here, I was starting to panic that something was wrong with my return, but seeing the consistent pattern of system capacity issues during peak hours is so reassuring. I just set up transcript access using Hattie's detailed method and found that my return shows code 150 - processing normally - even though WMR has been giving me 428 errors non-stop. What a relief! I'm definitely going to try the early morning approach tomorrow (planning for 5:45 AM based on all the success stories from Miguel, Sofia, Freya, and others). The network switching tip from ElectricDreamer is something I want to try too - I've been attempting this mostly from my work laptop which uses a corporate VPN, so switching to my personal device on home WiFi or cellular might help. It's honestly incredible how this community has developed more effective troubleshooting strategies than anything in the official IRS documentation. The combination of transcript monitoring for actual status plus strategic timing for WMR access is brilliant. Thank you all for turning what was becoming a really stressful situation into a manageable one with clear solutions to try!

Has anybody used the "Get Transcript" feature on IRS.gov? I know OP mentioned they couldn't verify online, but for anyone else reading - it worked great for me. Just needed to answer some identity verification questions about my credit history, and I was able to download all my transcripts right away.

I went through this exact same nightmare last year! The IRS online verification system is so finicky - it rejected me three times before I finally got through. Here's what worked for me: Try accessing your H&R Block online account first. Even if you don't remember your login, you can use the "forgot password" option with your email or SSN. They keep your returns accessible for several years, and you can view/download your 2023 return which will have your AGI right on line 11. If that doesn't work, you can also try Form 4506-T to request a tax return transcript by mail, but that takes 5-10 business days which might not help if you're trying to file soon. As a last resort, TurboTax does allow you to enter $0 for prior year AGI if you absolutely can't access it, though this might trigger additional verification from the IRS later. But at least you can get your return filed and get your refund process started. The moving situation makes everything so much harder - been there! Next year definitely scan everything to cloud storage before packing those boxes.