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Did u verify ur identity on id.me? That's usually step 1 for these freezes
Code 810 freezes are frustrating but usually resolve within 9-16 weeks from the freeze date. Since yours was placed March 2nd, you're getting close to that timeframe. The good news is your transcript shows no math errors or adjustments - just the freeze preventing release of your $10,712 refund. With self-employment income that high and such a large refund, they're likely doing income verification or checking for potential fraud patterns. The fact that you already completed ID.me verification is good, but sometimes they need additional documentation. I'd recommend calling the Taxpayer Advocate Service number mentioned above, but also try calling the regular IRS line early morning (7-8am) for better chances of getting through. Ask specifically about timeline for code 810 resolution and if they need any additional docs from you. Keep checking your transcript weekly - when it updates you'll see a code 846 (refund issued) with your direct deposit date. Hang in there, the money is definitely there waiting for you!
Another option to consider is TaxAct - I used it last year for my 1042-S and it was much more straightforward than FreeTaxUSA. They have a specific section for "Income from foreign sources" where you can directly enter the 1042-S information. Just be aware that the federal withholding shown on your 1042-S is sometimes at a different rate than regular withholding, so double-check those amounts when you enter them. My university withheld at 14% rather than the standard rate because of how fellowships are classified.
Thanks for suggesting TaxAct! Does it handle joint filing well when one spouse has 1042-S income? And did you find it accommodated HSA contributions properly alongside the fellowship income?
TaxAct handles joint filing quite well when one spouse has 1042-S income. The system lets you clearly designate which spouse received the fellowship income, and it carried that designation throughout the return correctly. For HSA contributions, yes, it worked perfectly alongside the fellowship income. TaxAct has a dedicated HSA section that's separate from the income reporting, so there's no confusion between the two. The software correctly calculated my HSA deduction while properly reporting the 1042-S income as non-earned income (which is important since HSA eligibility depends on having a qualifying high-deductible health plan, not on the type of income you receive).
I'm an international student advisor and see this issue constantly. For tax residents who've been here 5+ years, here's what you need to know about reporting 1042-S fellowship income: 1) If you're using FreeTaxUSA, report Box 2 amounts under "Other Income" and write "Fellowship" in the description 2) If your fellowship was for research services you actually performed (not just studying), it might be reportable as earned income instead 3) Box 7 of your 1042-S shows the income type code which is crucial for correct reporting 4) Box 10 shows withholding - make sure this gets properly credited on your return Most commercial software struggles with 1042-S. While Glacier is focused on nonresidents, it actually works fine for residents with 1042-S forms too - you just need to indicate your status correctly at setup.
Sometimes my university splits my funding between regular payroll (W-2) and fellowship (1042-S). Is there a good way to explain this to the tax software so I don't end up double-reporting?
This is a common situation! When you have both W-2 and 1042-S income from the same institution, make sure you're reporting them in their respective sections - W-2 income goes in the regular "Wages" section, while 1042-S fellowship income goes under "Other Income" as mentioned. The key is to check that the total amounts don't overlap. Your university should have clearly separated what's considered employment compensation (W-2) versus fellowship/scholarship funding (1042-S). If you're unsure about the split, your student financial services office or payroll department should be able to provide a breakdown of how they classified your funding. Most tax software will automatically prevent double-counting as long as you enter each form in its correct section, but it's always good to do a sanity check that your total reported income makes sense compared to what you actually received.
Be aware that you'll need to track these business expenses carefully throughout the year! Im a freelancer and spent hours at tax time trying to figure out which Amazon purchases were business vs personal. Now I use a separate credit card for all business stuff which makes it way easier!
Great question about timing! I went through this exact same situation when I started freelancing. The IRS generally allows you to deduct business expenses as long as they're "ordinary and necessary" for your business, even if purchased before you officially start earning income. The key is being able to demonstrate business intent. Keep documentation showing you were actively preparing to start your business - save emails with potential clients, research you did about setting up your business, any business registration paperwork, etc. This helps establish that your January purchases were legitimate business preparations, not just personal shopping. One tip: consider formally establishing your business entity (LLC, sole proprietorship registration) before making major purchases. This creates a cleaner paper trail and helps establish your business start date for the IRS. Also, if any equipment will have mixed personal/business use, be conservative with your business use percentage estimates and keep detailed logs to support your claims. The fact that you're thinking about this ahead of time shows you're taking the right approach!
This is really helpful advice about establishing business intent! I'm curious about the LLC vs sole proprietorship angle you mentioned. Does forming an LLC before making purchases actually provide better protection for deductions, or is it more about having cleaner documentation? I'm trying to decide if it's worth the extra paperwork and fees upfront, especially since I'm not sure how much I'll actually earn in my first year.
My brother was actually stationed at the Amundsen-Scott South Pole Station as an engineer for 14 months back in 2019-2020. He said the tax situation was handled by their employer (a contractor for the national science foundation) and they just used their permanent US address for tax purposes. He never had to select Antarctica as a country code for anything. The whole system is set up to handle the unique situation of Americans working in a place with no actual government. The funniest part was that he was there during the first COVID lockdowns and said it was the only place on Earth that remained completely COVID-free (since no one could come or go during the winter season). Talk about extreme social distancing!
This is such a fascinating thread! I had no idea there were so many people with actual Antarctica work experience. Reading about your brother's experience at the South Pole Station is incredible - I can't even imagine being that isolated, especially during COVID when the rest of the world was in lockdown. It's really interesting how the tax system handles these unique situations where Americans are working in places that technically don't belong to any country. The fact that they just use their permanent US address makes total sense from a practical standpoint. Thanks for sharing that story!
Nia Harris
Why not just get the two workers to chip in for gas? I know several carpooling arrangements at my workplace where passengers pay the driver a small amount to cover gas and wear on the vehicle. It's not a tax deduction, but it's a practical solution.
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Mateo Gonzalez
β’This is what we do at my warehouse! We have a few reliable employees who don't have transportation, so we created an informal carpool system. Drivers get $5-10 per person per day depending on distance. Not perfect but it helps offset costs without getting into tax complications.
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Dmitry Smirnov
I work in HR and have dealt with this exact situation before. One thing that might help is proposing a "qualified transportation fringe benefit" program to your employer. Under IRS Code Section 132, employers can provide up to $315 per month (2024 limit) in tax-free transportation benefits to employees. This could cover things like transit passes, parking, or even vanpooling arrangements. If your company set up a formal vanpool program where you're the designated driver, they could potentially reimburse your vehicle costs tax-free up to that monthly limit. The key is making it a formal company program rather than just you driving people around. Your employer would need to document it properly, but it could solve both the tax issue and get you reimbursed. Worth bringing up when you make your business case about retention costs!
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