Thanks for the advice on the tiebreaker rules. I didn't know parents get priority over non-parents. That's really helpful. I definitely have plenty of documentation showing my daughter doesn't live with the boyfriend full-time. Our custody is actually 60/40 with me having the 60%, so I have her more than half the year anyway. So even if my ex was trying to claim her in her years, sounds like I'd win the tiebreaker?

Yes, with 60% custody, you definitely have the stronger claim under the IRS residency test since your daughter lives with you for more than half the year. And you're right - biological parents do have priority over non-parents in tiebreaker situations. The fact that you have majority physical custody actually means you could technically claim your daughter every year under IRS rules, regardless of what your custody agreement says. However, be aware that violating your custody agreement (even if IRS rules would allow it) could potentially lead to family court issues. Some judges take tax provisions in custody agreements very seriously.

I'd also recommend getting the custody agreement clarified through the court if possible. My ex tried pulling something similar, and we ended up going back to court to get specific language about tax benefits added to our custody order.

Thanks for sharing your experience! How complicated was it to file the amendment? I've never done one before and I'm worried I'll mess it up somehow.

Filing the amendment through TurboTax was pretty straightforward. Since you already filed with them, you just log in, choose the option to amend your 2023 return, and follow the prompts. It'll ask what you're changing, and you'd select "income" and then add the 1099-R information. The system recalculates everything automatically. Just review the changes carefully before submitting. If your situation is simple like mine was (just adding a missed form), it shouldn't take more than 30-45 minutes. The hardest part is waiting for processing - paper amendments can take 6+ months to process currently.

Not the OP, but I think that's what they meant by "Form G" - they were referring to the distribution code in box 7. That's super important for determining the tax treatment.

You're right - it does have code G in box 7. I just double-checked the form. Does that change anything about how I should handle this?

Does the primary residence exclusion apply to nonresident aliens too? I thought that was only for US citizens and residents.

You're right to question this - the primary residence exclusion actually doesn't apply to nonresident aliens. I should have been more clear about that. While US citizens and resident aliens can exclude up to $250k/$500k of gain on a primary residence, nonresident aliens generally cannot take advantage of this exclusion. However, the reduced withholding rate (10% instead of 15%) for properties under $1 million that will be used as the buyer's residence still applies regardless of the seller's status. This is just for the withholding amount though, not the final tax liability.

Can u file the 8288-B yourself or do u need a tax preparer to do it?

5 Would filing a complaint with the state tax board help in this situation? I've heard they sometimes intervene in collection disputes.

14 Filing a complaint with the state tax board might help, but it usually takes time - often weeks or months. It's worth doing if other approaches fail, but I'd try direct negotiation first. That said, some states do have specific regulations about what collection agencies can charge for tax debts. Check your state's department of revenue website for information about third-party tax collectors. Some states require these agencies to register and follow specific guidelines, which might include limits on fees they can charge.

9 Absolutely! Document everything and take it to your employer first. When this happened to me, my HR department initially brushed me off, but when I escalated to the company controller and showed the withholding discrepancy on my pay stubs compared to the tax requirement, they covered the penalties. Companies have insurance for payroll errors for exactly this reason.

Thanks so much for breaking this down! This makes way more sense now. I found my tax return and my AGI was actually $48,500, so my adjustments were about $7,500 and then the standard deduction took me down to the $35k taxable income. Do you know what the income limits are for those education credits? I'm hoping to qualify next year.

For 2025 (taxes you'll file in 2026), the American Opportunity Credit begins to phase out at $80,000 MAGI for single filers and $160,000 for married filing jointly. It's completely phased out at $90,000/$180,000. The Lifetime Learning Credit has the same phaseout ranges. With your AGI around $48,500, you should be well within the limits to claim either credit as long as your income doesn't increase dramatically. The American Opportunity Credit is worth up to $2,500 but can only be claimed for the first 4 years of undergraduate education. The Lifetime Learning Credit is worth up to $2,000 and can be used for any level of education, including graduate courses or professional development.

Mortgage lenders will almost always look at your gross income (before any deductions) and sometimes specifically at your AGI, not your taxable income. They want to know your actual earnings capacity, not the number after all your deductions. They'll typically ask for 2 years of tax returns and recent pay stubs to verify your income.