Just went through this exact same process 2 weeks ago and I totally understand the stress! The CP63 verification really isn't as bad as it seems once you're prepared. Here's what worked for me: **Call timing**: Set multiple alarms and call EXACTLY at 10:00am - I'm talking right on the dot. I made the mistake of calling at 10:20am the first day and couldn't get through at all. When I called right at 10am the next day, I was connected in about 28 minutes. **Have these ready**: Your current tax return, previous year's return, Social Security card, ID, and the CP63 notice. Write down your previous addresses and employers from the last 4-5 years before calling - this saved me when they asked about where I lived in 2021. **The questions**: They asked me about my previous address, my 2022 employer, and the approximate amount of a car loan I had in 2020. I wasn't exactly right on the loan amount but they were cool with me being in the ballpark. **Timeline**: The agent said 6-9 weeks but my refund actually hit my account 16 days later, so don't lose hope! The agent was actually really helpful and patient. If you're not sure about an answer, just be honest about it - they have other ways to verify. You've got this! It's way more routine for them than it feels for us going through it.

I went through the CP63 verification process about 6 weeks ago and I completely understand your anxiety! Here's what really helped me succeed on the first try: **Call at exactly 10:00am** - I cannot stress this enough. I tried calling at 10:15am on my first attempt and got the "too busy" message. Called right at 10am the next day and waited only 19 minutes. **Have everything organized beforehand**: Current and last year's tax returns, Social Security card, driver's license, and your CP63 notice. I also wrote down all my addresses from the past 5 years and previous employers - this preparation was clutch. **The questions they asked**: My previous address from 2022, my employer from last year, and the balance on a credit card I opened in 2019. When I wasn't exact on the credit card limit, I said "I believe it was around $X but I'm not completely certain" and they moved to a different question. **Timeline**: They said 6-9 weeks but my refund was deposited exactly 18 days later. The agent was actually really understanding and professional. Don't guess if you're not sure - just be honest about your uncertainty and they'll ask different verification questions. This process happens thousands of times per day, so it's totally routine for them even though it feels nerve-wracking for us. You've got this! Set that alarm for 9:55am and call right at 10. Good luck tomorrow!

I completely understand your confusion! When I first started working, I had the exact same reaction seeing all those mysterious deductions. The good news is that everyone here has given you spot-on advice about what those abbreviations mean and how to fix your withholding situation. Just to add one more perspective - I actually keep a simple spreadsheet where I track my gross pay, each deduction, and net pay for every paycheck. It sounds nerdy, but it's helped me catch a couple of payroll errors over the years and really understand where my money goes each month. Plus, when I used the IRS withholding calculator (which is seriously a lifesaver!), having all that data organized made it super easy to input accurate information. Your $392 federal withholding on $2300 gross definitely seems high - I make similar money and mine's closer to $280. Once you get that W-4 updated, you'll probably see a nice boost to your take-home pay. And hey, at least you're learning all this stuff early in your career! Many people don't figure out proper withholding for years and end up giving the government free loans without realizing it. Welcome to the working world - it gets less confusing once you get the hang of all these acronyms and tax basics!

I went through the exact same shock when I started my first job! Those abbreviations are absolutely confusing - I remember staring at "OASDI/EE" for the longest time trying to figure out what it meant. Everyone's given you great explanations, but I wanted to add that your federal withholding does look quite high for your income level. When I was making around $60k annually, my federal withholding was closer to $300 per paycheck, not $392. You might want to double-check your W-4 - I made a similar mistake where I accidentally selected options that caused extra withholding because I was nervous about owing taxes. The IRS withholding calculator that others mentioned is definitely worth using. It helped me realize I was over-withholding by about $150 per month! The good news is that if you have been having too much withheld, you'll get it back as a refund when you file taxes. But it's definitely better to have the right amount taken out so you can use that money throughout the year instead of giving the government an interest-free loan. Don't feel bad about being confused by all this - the tax system is genuinely complicated and those paycheck abbreviations are not intuitive at all. Welcome to the working world!

Have you considered just partitioning your space? I had a similar issue and my accountant recommended physically dividing the room. I put up a small divider wall and now I have my "business only" area that meets the exclusive use test (about 60% of the room) and my personal area with a separate computer for non-business stuff. IRS Publication 587 doesn't actually require the space to be a separate room - just an "identifiable space." My accountant said this approach is compliant as long as you're very clear about which section is exclusively for business and can demonstrate that with photos and measurements.

I appreciate everyone's insights here! As someone who's dealt with this exact situation, I want to emphasize what several others have mentioned - the IRS really is strict about the "exclusive use" requirement. From what you've described, using your computer for personal activities like gaming, checking personal emails, and paying household bills would unfortunately disqualify the space from meeting the exclusive use test, even though the room itself is set up as a dedicated office. However, you still have some good options: 1. **Equipment deductions**: You can absolutely deduct the business percentage of your computer, internet, and other equipment costs. If you use your computer 80% for business, deduct 80% of those expenses. 2. **Physical partition**: As Benjamin mentioned, you could divide the room so part of it is exclusively for business. This requires clear physical separation and careful documentation. 3. **Separate personal activities**: Move all personal computer use to a different location in your home, keeping the office space truly exclusive. The audit stories shared here are sobering - the IRS does ask direct questions about how you use the space, and honesty is crucial. Don't let the strict rules discourage you from legitimate business deductions though. You just need to structure things correctly to stay compliant.

As someone who recently went through this exact situation, I can confirm that your 401(k) distribution should indeed be reported as ECI on Line 17a of Form 1040-NR. The reasoning everyone has shared here is spot-on - the distribution retains the character of the income that funded it. I made the same mistake initially and reported mine on Schedule NEC, but after doing more research and finding Revenue Ruling 79-388, I realized my error. The ruling makes it clear that retirement plan distributions to former employees maintain their ECI status even after the individual becomes a nonresident alien. One thing I'd add is to be extra careful about the withholding. Your 401(k) plan administrator may have withheld taxes at the standard 30% nonresident rate, but since this is ECI, you might be entitled to a refund depending on your other income and deductions. Make sure to calculate your actual tax liability properly. Also, don't forget to check if your home country's tax treaty has any provisions about retirement distributions - some treaties allow for reduced withholding or provide other benefits that could save you money. The tax treaty analysis can be complex, but it's worth investigating since it could significantly impact your final tax bill.

I've been following this discussion closely as I'm dealing with a very similar situation. Based on everything shared here, it's clear that the consensus is correct - 401(k) distributions should be reported as ECI on Line 17a when the contributions were made while working in the US. What I find particularly valuable is the mention of Revenue Ruling 79-388, which several people have referenced. This ruling really does provide the clearest guidance on this issue, establishing that retirement distributions maintain the character of the income that funded them. For those still unsure, I'd recommend focusing on this key principle: if your 401(k) contributions were made from wages earned while working in the US (which would have been ECI at the time), then the distribution retains that ECI character regardless of your current residency status. One additional point I'd add is about documentation. Keep records of your US employment dates and any correspondence with your plan administrator. If the IRS ever questions the ECI classification, you'll want to be able to demonstrate that the contributions were indeed made from US employment income. The tax treaty analysis mentioned by several commenters is also crucial - don't overlook potential benefits that could reduce your overall tax burden. This is definitely one of those areas where the details matter a lot.

I'm really glad I found this thread! I'm dealing with a similar W2 situation right now - my employer from a temp agency never sent me my form and I was getting really stressed about the filing deadline. Reading everyone's experiences with using wage transcripts has been incredibly reassuring. I just requested my transcript from the IRS yesterday, so hopefully I'll have it within the week. One question I haven't seen addressed yet - if you worked for multiple employers during the year, will the wage transcript show information for ALL of them, or do I need to request separate transcripts for each job? I had three different positions last year (two temp jobs and one part-time retail), and I'm wondering how that gets handled on the transcript. Also, has anyone had experience using the transcript with FreeTaxUSA or other free filing software? I'm hoping it works just as well as the paid options that others have mentioned. Thanks to everyone who shared their stories - this community has been so helpful!

I just wanted to jump in here as someone who recently went through this exact situation! My former employer (a small marketing firm that laid off half their staff) never sent me my W2, and I was honestly panicking about the filing deadline. The wage transcript from the IRS is absolutely legitimate and contains everything you need. What really helped me was understanding that the transcript is actually MORE accurate than what your employer might send you directly, since it reflects exactly what they reported to the IRS. One thing that made the process smoother for me was calling the IRS transcript line (1-800-908-9946) rather than trying to get it online - I had trouble with their identity verification system, but the phone service was straightforward and I received my transcript in about 7 business days. When I filed using the transcript information, everything went through perfectly. My refund was processed normally and I didn't receive any follow-up questions. The key is just being careful when transferring the numbers from the transcript format to your tax software, since the layout is different from a standard W2. Don't stress about this - you're definitely doing the right thing by using the transcript, and it's way more common than you might think!