Anyone else notice that tax software doesn't always handle this situation correctly? I used TurboTax and had to manually hunt for the checkbox about having capital gain distributions but not needing Schedule D. It wasn't presented as an obvious option during the interview process.

This thread has been incredibly helpful! I'm dealing with the exact same IRS rejection error (Business Rule IND-114) for a small capital gains distribution from my Vanguard target-date fund. Just to confirm my understanding: since I only have the $8 capital gains distribution reported on my 1099-DIV and no other stock sales or capital transactions, I can check the box on Form 1040 indicating I have capital gain distributions but don't need Schedule D, correct? I've been going in circles with my tax software trying to figure out where this checkbox is located. It sounds like different software platforms handle this differently - some make it obvious, others bury it in the settings. Thanks everyone for sharing your experiences with the AI tools and callback services too. It's reassuring to know there are options if I can't get this sorted out on my own!

Has anyone here tried getting a tax transcript by mail as a minor? The IRS website says they'll mail it to your address on file, but I'm wondering if they'll still send it if you're under 18? My brother is in a similar situation.

Another option worth mentioning - if you filed through a tax preparer last year (like H&R Block, Jackson Hewitt, etc.), they're required to keep copies of your return for at least 3 years. Even if you went to a small local office, they should have your 2022 return on file. You can call or visit the same location where you filed and request a copy. They'll need to verify your identity (usually with your SSN and some basic info), but this might be easier than dealing with the IRS systems that aren't designed for minors. Also, just to clarify something from earlier comments - even if your parents claimed you as a dependent, you would still file your own separate 1040 if you had income over $400 (or $5 if it was unearned income like interest). So at $3800 from your job, you almost certainly did file your own return last year, it just wouldn't affect your parents' ability to claim you as a dependent.

these clowns at the IRS need to get it together fr fr... been waiting since february with the same code 🤡

Code 420 can definitely be stressful! From my experience, it's usually just a routine review rather than a full audit. The IRS computer system flags returns for various reasons - could be income matching, deduction verification, or even just random selection. Most of these resolve automatically once their systems finish cross-checking your info with third-party documents (W-2s, 1099s, etc.). Try not to worry too much unless you receive an actual notice requesting documentation. The waiting is the worst part but it's typically just their backlog processing through.

One thing no one has mentioned - if your OIC gets approved, you'll be on a compliance period for 5 years. You have to file all returns on time and pay all required taxes when due, or they can revoke the OIC and reinstate the full original debt plus interest. Also, any tax refunds you would get during the year your OIC is accepted will be kept by the IRS.

Lucas, I was in a very similar situation - owed about $18k from a 1099 mix-up and was paying $300/month that felt like it was going nowhere. The OIC process is definitely worth exploring, but you need to be realistic about your chances. The key thing is your "reasonable collection potential" - basically what the IRS thinks they can realistically collect from you over the next 1-2 years through your current payment plan. If you're healthy, employed, and can maintain that $250/month payment, they might not see you as a good OIC candidate. That said, if your financial situation has changed since you started the installment plan (lower income, increased necessary expenses, health issues, etc.), you might have a stronger case. The IRS approved my OIC for about 40% of what I owed, but my income had dropped significantly due to a job change. Before you dive in, I'd suggest getting on the phone with the IRS to discuss your options. They can sometimes modify your existing installment agreement to lower payments if your circumstances have changed, which might be easier than going through the whole OIC process. Just be prepared for the phone system nightmare - it took me multiple attempts to get through to someone who could actually help.

Has anyone successfully used H&R Block online instead of FreeTaxUSA for 1042-S reporting? I'm trying to decide which software to use this year.

I went through this exact same situation last year as a grad student with a research fellowship! After trying several approaches, here's what worked for me in FreeTaxUSA: 1. Go to Income → Other Income → "Other Income Not Reported Elsewhere" 2. Enter the taxable portion of your 1042-S (remember, amounts for tuition/fees are typically not taxable, only living stipends) 3. In the description, write "Fellowship income from Form 1042-S" 4. For withholding, go to Federal Withholding → "Other Federal Withholding" and enter the amount from Box 7 of your 1042-S One thing that caught me off guard was that my university had withheld taxes on the full amount, including the tuition portion that wasn't actually taxable. This meant I got a nice refund! Since you mentioned you're married filing jointly with W-2 income, investment income, and HSA contributions, make sure you understand how the fellowship income affects your AGI calculations - it can impact HSA contribution limits and other deductions. The good news is that as a tax resident, you don't need to worry about the complexity of non-resident tax treaties or forms like 8843. FreeTaxUSA should handle everything once you get the income entered correctly.