Have you considered speaking to your brokerage firm? I had a similar issue with excess contributions and my brokerage (Fidelity) had a specific department that handled excess contribution removals. They calculated the attributable earnings for me and could process the removal in a way that was properly coded for the IRS. Also, don't forget that if you're using the money for qualified education expenses as you mentioned, you might qualify for an exception to the 10% early withdrawal penalty on any earnings (though you'd still owe income tax on those earnings). This is separate from the 6% excise tax issue, but could help reduce the overall financial impact.

I'm really sorry to hear about this stressful situation, but you're not alone - many international students make this mistake because the IRA rules aren't always clearly explained when you open accounts. A few additional points that might help: 1) Since you mentioned you're an F1 student, make sure you understand your tax treaty benefits if your home country has one with the US. Some treaties have provisions that could affect how penalties are calculated, though this probably won't eliminate the excess contribution issue. 2) Consider timing your withdrawal strategically. If you're planning to graduate and potentially work in the US (OPT, etc.), you might want to coordinate the withdrawal with a year when you'll have some US income to potentially offset the tax impact of any earnings withdrawal. 3) Keep detailed records of everything - all your contribution dates, account statements, and any correspondence with the IRS or your brokerage. This will be crucial if there are any questions later. 4) Don't let this discourage you from retirement planning once you do have eligible earned income! You clearly have good financial instincts, just got tripped up by the eligibility rules. The $6K in penalties is painful but manageable, and fixing this now will prevent it from getting worse. You've got this!

Has anyone had success just skipping the electronic import altogether? I wasted 3 hours trying to figure out this box d nonsense last year and finally just entered everything manually, which took like 15 minutes. Sometimes the "time-saving" features waste more time than they save.

I had this same exact issue with H&R Block last year! Box d is indeed the control number on your W-2, but here's the thing - many employers either leave it completely blank or use such light printing that it's nearly impossible to see. What worked for me was looking at my W-2 under bright light or even taking a photo with my phone and zooming in on the top section. Sometimes the control number is there but printed so faintly it's basically invisible to the naked eye. If you still can't find anything in box d, try entering "N/A" or just skip the electronic import entirely. I know it's frustrating when they advertise these "convenient" features that end up being more trouble than they're worth. Manual entry honestly only takes about 10-15 minutes and you'll have better control over making sure everything is accurate anyway.

Code 766 is definitely a step in the right direction! 🎉 It means they've applied a credit to your account (your refund amount), but you're still waiting for the magic 846 code that actually means "refund issued." I totally get the frustration after waiting since February - that's way beyond reasonable! I've been seeing everyone mention taxr.ai and honestly it sounds like a game changer. For $4.99 you get a full breakdown of what every code means and a timeline for when to expect your money. After months of staring at those cryptic numbers and getting nowhere with WMR, it seems worth it for the peace of mind alone. Hang in there - seeing that 766 means you're finally in their system and moving forward! Hopefully that 846 shows up soon! 🤞💰

Code 766 is definitely good news! 🎉 It means the IRS has applied a credit to your account - essentially they've calculated your refund amount. But I totally understand your frustration after waiting since February, that's absolutely ridiculous timing on their part. The key thing to watch for next is code 846, which means your refund is actually being issued with a specific date. There can sometimes be a gap of a few days to a couple weeks between these codes appearing. After 5+ months of this stress, I'd honestly recommend trying taxr.ai like so many people here are suggesting. For $4.99 it analyzes your entire transcript and gives you a clear timeline instead of playing the guessing game with all these codes. Way better than that useless "Where's My Refund" tool that just keeps saying "processing" forever! You're finally making progress though - hang in there! 🤞

Another option is to just use the "Multiple Jobs Worksheet" on the W4 form. My husband and I both work, and doing this worksheet helped us figure out the exact amount for extra withholding. We just put this amount on Line 4(c) of the W4. If you're filing jointly, you'll need to coordinate with your spouse so you don't double-count the extra withholding. We decided to put all the extra withholding on my W4 and just did the normal "Married" option on his. For state withholding, we just do Single or Married filing separately status even though we file jointly for federal. Not sure if that's technically right but it's worked for us to avoid owing.

Quick tip - I'm an accountant (not giving professional advice tho) and I always tell friends to just put "single" on their W4s if both spouses work similar incomes. It's not technically correct, but it's the easiest way to avoid owing. If your incomes are very different (like one person makes 80% of the money), then do "married" but add extra withholding. The IRS doesn't actually check or care what you put on your W4 as long as you don't severely underwithhold. They just want their money eventually lol.

Don't forget about the Child Tax Credit in this situation! For 2025, each qualifying child under 17 can get you up to $2,000 in credit. The parent who claims the child as a dependent is the one who gets to claim this credit. If one child has more medical expenses or childcare costs than the other, you might want to coordinate who claims which child to maximize tax benefits. The parent with higher income might benefit more from certain credits if they're phased out at lower income levels.

One thing I'd add is to make sure your son and his ex document their agreement in writing, even if it's just a simple text or email. The IRS doesn't require a formal custody agreement, but having some record of who agreed to claim which child can save headaches later. Also, they should both double-check that they meet all the dependency tests for their respective children - not just the residency test, but also that each child is under 19 (or under 24 if a full-time student), didn't provide more than half their own support, and is a U.S. citizen or resident. Since they're 8 and 10, age shouldn't be an issue, but it's good to verify all the requirements. The arrangement they're considering (each parent consistently claiming one child) is actually often better than alternating years with both kids, since it provides more predictable tax planning for both parents.