Anyone using any specific workpapers to handle the disconnect between the GILTI inclusion and the Sec 250 deduction? I'm trying to create a reconciliation schedule for our audit team that clearly shows why the full GILTI amount flows to the 5471 without the corresponding Sec 250 deduction.

This is a great discussion that really clarifies the conceptual framework. I've been dealing with a similar situation and was getting confused by the mechanics, but reading through these responses really helps. One follow-up question: when the CFC eventually makes an actual distribution of these earnings that created PTEP through the GILTI inclusion, is that distribution tax-free to the extent of the full GILTI inclusion amount, or only to the extent of the net amount after the Section 250 deduction? I'm thinking it should be tax-free up to the full GILTI inclusion amount since that's what created the PTEP in the first place, but I want to make sure I'm not missing something about how the Section 250 deduction might affect future distributions.

I haven't personally experienced this situation, but I know the Department of Education has had various pause periods on collections activities. It's worth checking directly with the IRS about your specific refund status too - you can call them at 1-800-829-1040 or check "Where's My Refund" on their website. Sometimes there can be delays even when offsets are paused. Also, make sure to get any pause information in writing from your loan servicer if possible. Hope you get your refund soon!

This is such a helpful thread! I'm dealing with a similar situation but with a twist - my spouse came here on a K-1 fiancé visa in late 2023, we got married in December, and now he's adjusting status to permanent resident. From reading all these responses, it sounds like the substantial presence test would still apply to determine his tax residency status, even though he entered on a different type of visa. He's been here about 4 months total in 2023, so probably doesn't meet the 183-day threshold for this year. But I'm curious about that "first year choice" election that @Zara Perez mentioned - would that apply to K-1 visa holders who get married and adjust status? It seems like it could be really beneficial for couples in our situation where someone arrives late in the year but will clearly be a resident going forward. Has anyone else navigated the W-4 question with a K-1 to adjustment of status timeline? I want to make sure I'm filling out my work forms correctly!

I went through this exact situation last year with my husband who was adjusting status from a tourist visa overstay (don't judge - we got married and filed everything properly!). The substantial presence test calculations can be really confusing, especially when you're trying to figure out partial years. One thing that helped me was keeping a detailed calendar of exactly which days my husband was physically present in the US. The IRS counts ANY part of a day as a full day for the substantial presence test, so even if someone arrives late at night or leaves early in the morning, those count as full days. For your situation with your husband arriving permanently in July 2023, make sure you're counting ALL days from July through December 31st, plus the brief January visit. That should put you well over the threshold when combined with the weighted days from 2022. Also, just a heads up - when you eventually file your 2023 tax return, you might want to consider making the "dual-status" election if it would be more beneficial. This lets you treat part of 2023 as non-resident (January through July) and part as resident (July onwards). Sometimes this can be better than treating the entire year as resident, depending on your income situations. The good news is that once someone meets the substantial presence test, the W-4 question becomes much clearer for future years!

Based on what I've seen in this community: • Disappearing tax topic = processing movement (usually good) • Can't access transcripts = separate issue (verification problem) • 3 weeks processing = still within normal timeframe • Student filers often see faster processing in May • Most refunds with standard deductions/credits arrive within 21-30 days Don't panic yet! But if it goes beyond 30 days with no updates, then consider taking more action.

I went through the exact same thing about 6 weeks ago! Tax topic disappeared, couldn't access transcripts online, and I was convinced something was wrong. Turns out it was just the normal processing flow. My refund showed up exactly 23 days after filing. The transcript access issue is super common - I had moved apartments and apparently my phone number wasn't updated in their system properly. Once I called the automated transcript line (1-800-908-9946) instead of trying online, I could actually get through and see my account transcript which showed everything was processing normally. For what it's worth, disappearing tax topics during weeks 3-4 after filing is actually pretty typical, especially if you have any credits or deductions that need additional verification. Since you need this for summer tuition, I'd suggest checking your bank account daily too - sometimes the deposit appears before WMR updates with the official date!

Something nobody's mentioned yet - if you have a lot of dividend income, you might need to file state tax returns too, even as a non-resident alien. Some states like California are aggressive about taxing investment income with any connection to their state. I learned this the hard way when I got a letter from California FTB even though I've never set foot in California. Apparently my brokerage has an office there, which was enough for them to claim nexus. Check if your broker is based in a state with income tax.

I've been filing 1040NR for several years now and can confirm that TaxAct handles dividend reporting correctly. Your dividends should definitely go on Schedule NEC as non-effectively connected income, which is exactly what TaxAct is directing you to do. The key thing to remember is that you'll need to manually enter your tax treaty information to get the reduced withholding rate. Don't expect the software to automatically know your country's treaty provisions - you'll need to look up the specific article that covers dividend income and enter that information yourself when claiming treaty benefits. One tip: keep a copy of your country's tax treaty handy while filing. You'll need the exact article number and language for Form 8833. Also, make sure your 1099-DIV shows the correct amount of tax withheld - sometimes brokerages make errors that you'll need to catch and correct on your return. The dividend reporting process can seem confusing at first, but once you understand that most investment income for non-residents goes on Schedule NEC rather than the regular dividend schedules, it becomes much clearer.