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Just want to add, if you do get the Wage and Income Transcript from the IRS, be aware that it won't show your state tax withholding! I made this mistake last year and had to go back and amend my state return. Make sure you still try to get the actual W2 copies from your employers for complete state tax information.
Same thing happened to my cousin with OneClickLife. They quoted him some ridiculously low refund amount. He ended up going to H&R Block instead and got over $800 more. These online services can be sketchy sometimes. Has anyone compared the fee structures? I wonder if OneClickLife is taking a percentage rather than charging a flat fee like most services do.
I used them last year and noticed they had a "processing fee" buried in their terms that was like 25% of the refund amount! Total ripoff. Read the fine print, folks.
For anyone looking for alternatives, I've been using FreeTaxUSA for the past few years and have been really happy with it. Federal filing is free and state is like $15. Super straightforward and they don't try to upsell you on stuff you don't need.
Thanks for the suggestion! I'll check that out. Have you ever had any issues with them calculating returns incorrectly or missing deductions?
I've never had issues with incorrect calculations. They walk you through everything step by step and explain what deductions you qualify for based on your inputs. They also have a comparison feature that shows how your return differs from last year so you can spot any major discrepancies. It's been super reliable for me even when my tax situation got more complex with some freelance work and investments.
Just to add another perspective - I've been using TurboTax for 7 years now. The regular version (not Live) is usually enough if your tax situation is straightforward. But last year I had some questions about deducting my home office since I started freelancing, so I upgraded to Live. The upgrade cost me about $70 extra at the time, but having an expert review my return and confirm I was doing the home office deduction correctly gave me peace of mind. They even found a deduction I missed related to my business expenses. So while it does cost more, sometimes it's worth it if you're uncertain about parts of your return.
Did you have to schedule the Live help in advance or could you just click and get someone right away? I'm trying to finish my taxes tonight and wondering if I can get help immediately if I upgrade.
When I used it, I didn't need to schedule in advance. I just clicked the "Get expert help" button that appears throughout the TurboTax interface, and I was connected with someone within about 5-10 minutes. They do show you the current wait time before you connect, and I imagine it might be longer during peak filing times (like early April). But generally the experience was pretty seamless - once connected, the tax expert could see my screen and walk me through exactly what I needed to do.
Am I the only one who thinks all these tax preparation services are a racket? The government already has all our W-2 and 1099 information. In other countries, they just send you a completed form and you verify it. Here we have to pay companies like TurboTax to "help" us do something that should be simple and free. And then they nickel and dime you for every little "premium" feature. Sorry for the rant, but it's frustrating.
You're definitely not alone! I've been saying this for years. TurboTax and H&R Block actually lobby against tax simplification so they can keep charging us. It's ridiculous that we have to pay to comply with laws that are mandatory.
Just want to add some context about international inheritance. If your uncle is a US citizen, he's required to report worldwide income and assets regardless of where he lives. The Foreign Bank Account Report (FBAR) requirements might also apply if he has financial accounts outside the US that exceed $10,000. Also, South Korea has its own inheritance tax which can be quite high (up to 50% for large inheritances). If he's avoiding taxes in both countries, that's a serious issue. If you decide to file Form 3949-A, focus on factual information about the unreported inheritance, estimated values, and timeline. The IRS is interested in the tax implications, not the family dispute aspects.
Thanks for this insight! Do you know if the IRS typically shares information with tax authorities in other countries? Like would they notify South Korean tax authorities if they find evidence of tax evasion related to property there?
Yes, the IRS does share information with many foreign tax authorities through tax treaties and information exchange agreements. The US and South Korea have a tax treaty that includes provisions for sharing tax information. If the IRS investigates and finds evidence of tax evasion involving South Korean properties, they may very well share that information with South Korean authorities. This is especially true for larger cases where significant tax revenue is at stake. Many countries have become much more cooperative in recent years to combat international tax evasion.
Don't forget that filing Form 3949-A is confidential, but not anonymous if you want to be eligible for a potential whistleblower award. If your info leads to collection of unpaid taxes, you might be eligible for a percentage. But be prepared for family fallout if they ever find out you reported them. I reported my brother-in-law years ago for not reporting a huge inheritance from his grandfather's estate in Italy, and while the IRS did follow up, our family hasn't spoken since.
Zoe Stavros
14 Has anyone had success using H&R Block online for filing 1042-S as a resident alien? TurboTax seems to be failing me completely.
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Zoe Stavros
β’2 I tried H&R Block last year for my 1042-S and it was just as confusing as TurboTax. Ended up having to go to their physical office and pay extra for an international tax specialist. Not worth it imo.
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Zoe Stavros
β’14 Thanks for the feedback! That's disappointing to hear. Seems like the mainstream tax software just isn't equipped to handle these international student situations properly. I might need to look into some of the specialized services mentioned in this thread instead.
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Zoe Stavros
19 Quick side note that might help - check if there's a VITA (Volunteer Income Tax Assistance) program at your university. Many universities with international students have special VITA volunteers trained specifically on handling 1042-S forms and residency status changes. It's completely free and they might save you a lot of headaches!
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