What counts as "substantially identical" though? I've heard different things from different sources. Like if I sell an S&P 500 ETF (like SPY) at a loss, can I buy a different S&P 500 ETF (like VOO) within 30 days? They track the same index but are technically different funds.

Substantially" identical is unfortunately one of those gray areas in tax law. The IRS'hasn t provided extremely clear guidelines, which is why it can be confusing. For ETFs tracking the same index, like SPY and VOO both tracking the S&P 500, many tax professionals consider them substantially identical because they have nearly identical performance and holdings. So swapping between them would likely trigger wash salerules.

I used TurboTax Premier last year and it did identify some wash sales when I imported my 1099-B from my broker. But I noticed it missed some wash sales that spanned December to January (across tax years). I had to manually adjust those. Make sure you're checking transactions that happened in January 2024 against any December 2023 sales at a loss.

21 What's the typical price range for a CPA who knows about nonresident taxes? I'm worried it would be crazy expensive compared to software.

3 The cost typically ranges from $200-500 for a nonresident return with HSA components, depending on your location and the complexity of your overall tax situation. Some universities also have partnerships with local CPAs who offer discounted rates for international students. While it is more expensive than software, it can be worth it for peace of mind, especially if you have multiple complications like an HSA, investments, or multiple state filings. Many CPAs also offer free consultations where you can ask about their experience with nonresident returns before committing.

11 Did you have any issues with the state return using H&R Block? I heard some tax software can do federal ok for nonresidents but mess up the state part.

But if it's a hobby and not a business, can you still deduct expenses? I thought the Tax Cuts and Jobs Act eliminated hobby expense deductions?

You're absolutely right about the Tax Cuts and Jobs Act eliminating hobby expense deductions - which is precisely why it's actually beneficial for the original poster to treat their teaching as a business activity on Schedule C rather than a hobby! When you report income on Schedule C as self-employment, you can deduct ordinary and necessary business expenses against that income. If you were to classify it as hobby income, you'd still have to report all the income but couldn't take any deductions against it at all, which would result in paying more tax.

Try FreeTaxUSA instead! I switched last year and it's much more straightforward for handling these small 1099-NEC situations. It asks for the essential info without making you feel like you need an MBA to file your taxes.

So wait, if your amended return actually gets processed and accepted, you have to keep amending going forward? You can't just call the IRS and say "nevermind, use my original"? That seems weirdly inflexible.

Exactly - once the IRS processes and accepts an amended return, it becomes your official return of record. Your original return is essentially overwritten in their system. The IRS doesn't have a "just kidding, go back to the original" option. They can only move forward with processing additional amendments. It's one of those bureaucratic things that makes sense from a record-keeping perspective but is super frustrating for taxpayers who realize they made a mistake on their amendment.

I ignored a rejected amended return in 2023 and nothing bad happened. My original return remained in effect, got my refund from that with no delays, and never heard anything from the IRS about it. Just make sure you actually got a formal rejection and not just a math error notice or something else.

Thanks for mentioning the code M thing - I had no idea about that. Is that something I need to include in my response to the CP2000, or is that only relevant for filing my tax return?

For responding to the CP2000 notice, you don't necessarily need to reference code M specifically, but it's helpful to understand that's how it should have been reported. What's most important for your CP2000 response is to clearly show your original cost basis for the CERN shares and the conversion value. If you're disputing the amount on the CP2000, you'll want to complete the response form they provided, attach your supporting documentation from Morgan Stanley showing your purchase history and the conversion details, and provide a clear explanation of why you believe the notice amount is incorrect. If you're not disputing the amount and just paying it, you can simply follow the payment instructions.

This is really good advice. I went through a similar situation with Adobe acquiring another company and initially got a CP2000. After digging through all the paperwork, I found documentation that it qualified as a tax-free reorganization. Saved me thousands in unexpected taxes!