I'm dealing with a similar situation but with a different twist - I moved from Hong Kong to the US in early 2024 and my MPF provider is telling me I can only withdraw after being outside Hong Kong for 12 months. So I won't be able to access my funds until early 2025. From what I'm reading in this thread, it sounds like the tax treatment will be the same regardless of when I actually receive the money - it'll be taxable income in the year I receive it (2025 in my case). But I'm wondering if there are any planning opportunities since I have advance notice of when this income will hit. For example, would it make sense to try to keep my other income lower in 2025 to stay in a lower tax bracket when the MPF distribution comes in? Or are there any strategies for spreading the tax impact across multiple years? My MPF balance is pretty substantial after working in Hong Kong for 8 years, so I'm worried about the tax hit all coming at once. Has anyone dealt with the 12-month waiting period requirement and found any useful planning strategies for managing the eventual tax impact?

Just wanted to add some perspective as someone who went through MPF withdrawal taxation a couple years ago. One thing that really helped me was getting a letter from my MPF provider in Hong Kong that specifically broke down the tax treatment of my contributions there. This documentation was crucial when my US tax preparer was trying to determine what portions might qualify for different treatment. The key insight for me was understanding that Hong Kong salaries tax had already been paid on the mandatory employee contributions going into the MPF, but the employer contributions were made pre-tax. This distinction mattered for US tax purposes, though as others mentioned, any investment growth is still fully taxable here regardless of the source. Also, don't overlook state tax implications if you're in a state that taxes income. Some states have different rules for retirement distributions that might affect your overall tax situation. California, for example, generally follows federal treatment but you'll want to confirm based on your specific state. The complexity really justified getting professional help for me - between federal taxes, state considerations, and potential FBAR reporting, there were too many moving pieces to risk getting wrong on a DIY approach.

stuck in the same boat waiting for fed but got my NY state refund already deposited last week

anyone else notice the irs website is down AGAIN? 🤡

Has anyone actually gone through an audit on this kind of situation? I claimed my girlfriend's daughter last year and now we're being audited. The biological father also claimed her even though she only sees him every other weekend. I'm terrified we'll have to pay back the child tax credit.

I went through a similar situation a few years back and learned some important details that might help you. The key thing to understand is that when multiple people could potentially claim the same child, the IRS has "tiebreaker rules" to determine who has priority. Since you're not married to your girlfriend, you'd need to qualify under the "qualifying relative" rules rather than "qualifying child" rules. This means you need to provide more than 50% of the child's total support AND the child's gross income must be less than the exemption amount (which isn't an issue for a 7-year-old). The tricky part is that if the biological father is eligible to claim the child but chooses not to, that doesn't automatically make you eligible. However, if you truly provide more than half the support and meet the other tests, you may have a valid claim. My advice would be to carefully calculate exactly what percentage of the child's total annual support you're providing (housing, food, clothing, medical, education, etc.) and document everything. If it's genuinely over 50% and the child lives with you more than half the year, you likely have a stronger claim than the biological father, regardless of the child support he pays. Just make sure to communicate with all parties involved to avoid duplicate claims, which can trigger audits for everyone.

Has anyone used a third-party service to help with the ERO application? I'm in a similar boat and wondering if it's worth hiring someone or if I should just apply directly.

I actually went through this exact situation about 2 years ago with a DUI from 6 years prior. I was terrified that it would prevent me from getting ERO status, but it turned out to be much less of an issue than I expected. The key things that helped me were: 1) Being completely honest on Form 8633 - I disclosed everything upfront, 2) Including a brief letter explaining the circumstances and what I learned from the experience, and 3) Emphasizing my clean record and professional conduct since then. My application was approved without any follow-up questions. The IRS seems much more concerned with recent issues or patterns of behavior rather than isolated incidents from several years ago. Your 9 years of experience as a tax preparer with an active PTIN actually works strongly in your favor - it shows you've been trusted with tax preparation responsibilities and maintained good standing. Don't let the DUI stop you from pursuing your business goals. Just be honest, provide complete information, and let your professional track record speak for itself.

Has anyone successfully resolved this error by creating an IRS online account? I've heard sometimes you can pull your exact AGI from their transcript system.

I had this exact same reject code last week and it was driving me crazy! After reading through all these suggestions, I ended up trying the IRS transcript approach that Carmen mentioned. Created my online account at IRS.gov and pulled up my 2023 tax transcript - turns out the AGI I had been using was off by exactly $1! Must have been a rounding error somewhere. Used the exact number from the transcript and my return was accepted within minutes. Definitely recommend checking your transcript first before trying the other methods - it's free and might save you a lot of time and stress. Thanks everyone for all the helpful advice in this thread!