Does the Closer Connection Exception apply even if you're on a work visa? I thought that was mainly for people who are here temporarily like students or those on visitor visas who stay too long and risk becoming resident aliens.

You're right about the Closer Connection Exception having limitations - it primarily applies to those who meet the substantial presence test but want to claim they have stronger connections to another country. For work visa holders like those on H-1B, L-1, etc., this exception generally doesn't apply because your visa status already defines you as a Non-Resident Alien. The exception is more relevant for people who are in the US on visitor visas, business trips, or certain students who exceed the substantial presence thresholds but maintain stronger ties to their home country.

Don't use regular TurboTax for NRA taxes! They have a separate product called "TurboTax for Non-Residents" but even that missed several treaty benefits for me. I had better luck with Sprintax which is specifically designed for international taxpayers and Non-Resident Aliens.

Thanks for the tip about Sprintax! I was about to buy regular TurboTax not realizing they had different versions. Did Sprintax help you understand why you owed taxes or just complete the forms? I'm trying to avoid a big tax bill next year.

Thank you so much for sharing this! It helps knowing someone else in a similar situation got a comparable refund. Did you have to provide any extra documentation when you filed? I'm still nervous about getting flagged for review.

Nope, didn't need any special documentation when filing. Just make sure you have everything on hand in case they do request verification later. For me, that meant keeping my kids' social security cards, school records showing they live with me, receipts for education expenses, and all my income documents in a folder. I filed in early February and already received my full refund by direct deposit about 2 weeks later with no issues. The system is designed to help working parents like us - these aren't loopholes, they're intentional benefits we qualify for!

This is good advice. I've seen people get excited about huge refunds only to find they entered $12,000 withholding instead of $1,200 by accident.

Thanks for the suggestion - I just doubled checked all my W-2 entries and the withholding amounts. Everything looks correct! My total federal withholding was about $4,800 for the year, so most of the refund is actually coming from the credits, not from over-withholding. It's still hard to believe though!

Thanks for confirming this! So what would you recommend I do now? Should I just request an amended return or should I also file a complaint? I don't want to overreact but I'm also pretty upset about this.

You should definitely request an amended return with the additional information you have. This is your right and will get you the full refund you're entitled to. Regarding filing a complaint, that depends on how the preparer responds when you confront them about this issue. If they acknowledge their mistake, take responsibility, and fix it promptly without charging you additional fees, you might give them a second chance. However, if they're defensive or dismissive, then yes, I would file a complaint with the appropriate body depending on their credentials (IRS, state board, or professional organization).

Same happened to me, but I used FreeTaxUSA for the amended return and it made the process a lot easier. Their interface walks you through exactly what changed from the original return.

Doesn't filing an amended return increase your chances of getting audited though? I've always heard you should avoid amendments if possible.

That's actually a common misconception. Filing an amended return doesn't automatically increase your audit risk. The IRS understands that people need to make corrections or additions to their returns for legitimate reasons. What increases audit risk is when the amendment drastically changes your tax situation or seems inconsistent with your original return. In this case, adding education credits later is a common and understandable amendment that wouldn't raise any red flags.

In my experience, state returns are processed independently from federal returns, even if you file them together. Each state has its own processing system. That's why your state return was accepted while federal was rejected.

I've done both calculations for my last two tax years. For me, the regular method was WAY better - I got almost $2,200 in deductions versus $500 with the simplified method. But I live in a high-cost area with expensive rent and utilities. The simplified method is obviously easier, but worth running both calculations before deciding.

Thanks for sharing your experience. That's a huge difference! I'll definitely calculate both ways. I'm in a higher cost area too so maybe the regular method will be better for me as well, even with the extra record keeping.

Also, if you're a W-2 employee who can't take the federal home office deduction, some states still allow it on state returns! I know Massachusetts and New York have provisions for this. Definitely worth researching your specific state rules.