I completely understand the anxiety you're feeling right now - seeing that 826 code can be really jarring when you're counting on your full refund! From everything I've learned about tax codes, 826 means the Treasury has intercepted your refund to pay off a government debt, but the good news is you still have options and rights in this situation. The most important step is to call the Treasury Offset Program at 800-304-3107 as soon as possible. They can tell you exactly which agency received your money, what type of debt it was for, and how much was offset. Make sure you have your Social Security number ready when you call. Here's what's encouraging: unless your debt amount equals or exceeds your entire refund, you should still receive the remaining portion within a few weeks. Many people in this thread have shared that they got back hundreds or even thousands of dollars after their offset was processed. You should also be receiving an official notice in the mail explaining the offset - they're legally required to send you one. This notice will include information about your rights and how to dispute the offset if you believe it's incorrect. Don't panic about this being done "without your permission" - while it feels that way, the offset system is automatic for certain government debts like student loans, unpaid taxes, or child support. But you absolutely have the right to understand what happened and to dispute it if there's an error. Keep us updated on what you find out!

I just want to echo what everyone else has said about calling the Treasury Offset Program at 800-304-3107 - that really is your best bet for getting concrete answers. I went through this same situation about 8 months ago and I know how stressful it is when you're counting on that refund money! In my case, it turned out to be for an old federal student loan that had gone into default without me realizing it. The scary part was not knowing what was happening, but once I called and got the details, I felt so much better. They were able to tell me exactly how much went to the Department of Education ($1,850) and that I'd still be getting the remaining $975 from my original $2,825 refund. Sure enough, about 10 days later the rest showed up in my account. The key thing is don't let the unknown eat away at you - make that call tomorrow morning and get the facts. Even if the news isn't great, at least you'll know exactly what you're dealing with and can start making a plan from there. Keep your head up - this is way more common than you think and most people do get through it just fine!

This has been such a helpful discussion! I'm dealing with a similar situation - my father passed away last year and left behind a house full of collectibles, books, and vintage items. I've been paralyzed by the whole donation valuation process because I was afraid of either claiming too much or leaving money on the table. Reading through everyone's experiences, I think the key takeaway is that there's no "magic bullet" - you need to use good judgment, document everything well, and be prepared to defend your values with reasonable evidence. The hybrid approach that Louisa mentioned makes a lot of sense - use ItsDeductible as a starting point but adjust based on local market conditions and actual item quality. One question I haven't seen addressed: for items that might have collectible value (like vintage books or antiques), should I get them appraised before donating, or is it okay to use the standard donation value guides? Some of these items might be worth more than typical thrift store pricing, but I'm not sure how to handle that without spending a fortune on appraisals. Also want to echo what others said about documentation - I've started taking photos and keeping detailed records, and it definitely helps with peace of mind. Better to spend a little extra time now than worry about an audit later!

This whole discussion really highlights how complex donation valuation can be! I've been dealing with a similar situation after my mother downsized to assisted living - we've donated probably $12,000 worth of items over the past 18 months. One thing that's helped me sleep better at night is keeping a "valuation journal" where I note my reasoning for each major donation batch. For example, "Adjusted ItsDeductible values down 25% for women's clothing because items showed normal wear and local thrift prices are lower than national averages" or "Used book values adjusted to $2 each based on Half Price Books pricing in my area." The other thing I learned from my tax preparer is that the IRS is generally more concerned about people who suddenly claim huge donation spikes without explanation, or who claim values that are obviously inflated (like $100 for a used t-shirt). If your values are in a reasonable range and you can explain your methodology, you're probably fine. I also want to second what others said about getting professional help when dealing with large amounts. My CPA charges $75 to review donation documentation, and it's been worth every penny for the peace of mind. She's caught both overvaluations and undervaluations in my records, and helped me understand what level of documentation the IRS actually expects.

This has been an incredibly comprehensive discussion! As someone who's been researching this exact situation for months, I wanted to add one more consideration that hasn't been mentioned yet - the potential impact on your future US immigration status. If you're planning to eventually apply for a green card (which many L2 holders do through their spouse's L1), your tax compliance history will be scrutinized during the adjustment of status process. USCIS will want to see that you've properly filed and paid all required taxes in both countries. This means it's especially important to get the tax treatment right from day one, rather than trying to correct mistakes later. I've heard of cases where people had delays in their green card applications because of tax compliance issues, even when the actual amounts owed were relatively small. Also, keep detailed records of everything - days spent in each country, tax payments made, correspondence with tax authorities in both countries. The burden of proof will be on you to demonstrate compliance if questions arise later. One more practical tip: consider setting up automatic transfers to a dedicated tax savings account as soon as you start working from the US. Based on the experiences shared here, it sounds like you'll likely owe taxes to both countries initially (before credits are applied), so having cash set aside quarterly will help avoid any cash flow crunches at filing time.

This thread has been incredibly informative! I'm actually planning to be in a similar situation next year (L2 visa, continuing remote work for my Canadian employer) and this discussion has highlighted so many complexities I hadn't even considered. A few additional questions based on what I've read here: 1. **Timing of the move**: Several people mentioned strategic timing for tax purposes. Is there an optimal time of year to make the move to maximize benefits like the Foreign Earned Income Exclusion? It sounds like mid-year might be better than January 1st? 2. **Banking considerations**: I noticed mentions of keeping UK bank accounts vs opening US accounts for tax savings. Are there any FBAR (Foreign Bank Account Report) implications I should be aware of when maintaining foreign accounts while being a US tax resident? 3. **Professional licensing**: This might be specific to my field (I'm in tech/software), but has anyone dealt with professional licensing or certification transfers when working remotely for a foreign company from the US? I'm wondering if there are any regulatory complications beyond just the tax issues. The immigration compliance angle that @Molly Hansen brought up is particularly eye-opening. It really drives home the importance of getting professional help rather than trying to wing this on my own. For those who've been through this process - roughly how much should I budget for professional tax advice in the first year? I want to make sure I'm prepared for all the costs involved beyond just the taxes themselves. Thanks again to everyone who's shared their experiences - this has been incredibly valuable!

Don't forget about Section 179 deduction if you do end up filing as a contractor! You can potentially deduct the full cost of the iPad in the year you buy it rather than depreciating it over several years, as long as you use it more than 50% for business. This is especially helpful for something like an iPad that becomes outdated quickly.

Great discussion here! I'm an enrolled agent and wanted to add a few practical considerations based on what I've seen with similar cases. The employee vs. contractor distinction is crucial, but there's another angle worth exploring: if your employer is already paying you for 120 hours of this work, you might be able to negotiate having them purchase the iPad as a business tool that stays with the company after the project. Many employers are more willing to buy equipment than deal with the administrative headaches of reclassifying workers. If you do go the 1099 route, document everything meticulously. The IRS has been increasingly scrutinizing worker classification, especially when someone is both an employee AND contractor for the same company. Make sure the mural work truly operates independently from your regular job duties - different work location, your own schedule, using your own tools, etc. One more tip: even if you end up keeping it as W-2 work, if you have ANY other freelance art income (even small commissions), you could potentially allocate a portion of the iPad cost to that Schedule C business activity. Just make sure the allocation is reasonable and well-documented.

Great question! I learned this the hard way in my first year of freelance work. The 20-25% rule is a good starting point, but you'll likely need more depending on your total income situation. Here's what I wish someone had told me: Start by setting aside 30% to be safe, then adjust based on your actual tax situation. The self-employment tax alone is 15.3%, and that's before income tax even kicks in. If you have a regular W-2 job too, that side hustle income gets taxed at your marginal rate, which could push you into a higher bracket. I use a simple system: separate checking account just for business income, and I immediately transfer 30% to a high-yield savings account labeled "TAX MONEY - DO NOT TOUCH." This way I'm not tempted to spend it, and it earns a little interest while I wait for quarterly payment dates. Also, start tracking your business expenses from day one! Miles driven, equipment purchases, home office space, phone bills if you use it for business - these deductions can really add up and reduce what you actually owe. I use a simple spreadsheet and save all receipts in a folder. You're smart to think about this upfront rather than getting surprised at tax time like I did!

This is exactly the kind of question I wish I'd asked before jumping into my first 1099 gig! The 20-25% rule is definitely a starting point, but I'd recommend being more conservative at first - maybe 30-35% - until you get a feel for your actual tax situation. One thing that really caught me off guard was understanding that you're not just paying income tax, but also the full self-employment tax (both the employer and employee portions of Social Security and Medicare). That's roughly 15.3% right off the bat, before any income tax calculation. My approach now: I treat every 1099 payment like it's already been "pre-taxed" by immediately moving 30% into a separate savings account. It's much easier to get a refund for overpaying than to scramble for cash you don't have when tax season arrives. Also, if you expect to make decent money from this side hustle throughout the year, look into quarterly estimated payments. The IRS doesn't like waiting until April to get their money if you're going to owe more than $1,000. I learned this one the expensive way with underpayment penalties! Keep good records of any business expenses too - they can really help offset your tax burden. Good luck with the new venture!