I've been using Mercury for my LLC as a non-US resident (based in Canada) for about 2 years now, and while it's been reliable, I'm definitely feeling the pinch from their recent fee changes. The international wire fees have nearly doubled since I started with them. One thing I haven't seen mentioned here is the importance of considering your state's banking requirements. Some states have specific regulations about LLC banking that might influence your choice. Also, if you're planning to apply for any US business credit cards or loans in the future, having a relationship with a traditional US bank like Mercury might be beneficial for building business credit history. That said, after reading everyone's experiences with Wise Business, I'm seriously considering making the switch. The multi-currency features and better exchange rates seem like they'd more than offset any potential credit-building benefits from staying with Mercury. Has anyone here successfully transitioned from Mercury to Wise? I'm particularly curious about how smooth the process was for updating payment information with existing clients and any disruptions to cash flow during the transition.

I've been researching this exact same question for my tech consulting LLC as a non-US resident from the UK. After reading through everyone's experiences here, I'm leaning heavily toward Wise Business, especially after seeing the detailed comparisons. One aspect I haven't seen discussed much is the impact on quarterly tax payments to the IRS. Does anyone know if there are differences in how Mercury vs Wise handles the electronic federal tax payment system (EFTPS)? I need to make estimated tax payments for my LLC and want to ensure whichever bank I choose integrates smoothly with IRS payment systems. Also, for those using Wise Business - have you encountered any issues with US vendors or clients who specifically require payments from "traditional" US banks for their compliance requirements? I have a few potential enterprise clients who mentioned strict banking requirements in their vendor agreements. The fee savings with Wise seem compelling based on what everyone's shared, but I want to make sure I'm not creating any operational headaches down the road. Any insights would be really helpful as I make this decision!

I'm confused about something - if I'm getting a 1099-NEC, does that mean I have to pay self-employment tax on this money too? That's like an extra 15% on top of regular income tax, right?

This is exactly why proper documentation is so crucial! For future reference, make sure you keep detailed records of your actual expenses (gas receipts, maintenance costs if using actual expense method, or a mileage log if using standard rate). Also, when working with organizations that reimburse expenses, try to clarify upfront whether they follow an accountable plan - this can save you headaches later. One thing to note: since you mentioned you're a part-time college instructor, if this was related to your regular teaching duties rather than independent contractor work, the classification might be worth reviewing too. But given that you received a 1099-NEC, you're being treated as an independent contractor for this conference work, which actually works in your favor for deducting expenses. The advice about using Schedule C to offset the reimbursement is spot on. Just make sure your mileage records are solid in case of any questions later!

Hey has anyone noticed that Vanguard sometimes messes up the cost basis on their 1099 forms? I had to call them last year because the numbers were completely wrong and it would have cost me an extra $2k in taxes!

For your Vanguard 1099-R, definitely double-check all the numbers against your account statements before filing. Since you mentioned this was for home repairs after a pipe burst, you'll want to keep detailed records of the repair costs and any insurance claims. The IRS may ask for documentation if they audit the hardship exception. One thing to watch out for - if your employer's 401k plan has specific hardship withdrawal rules, those might be different from the general IRS rules for penalty exceptions. Your plan administrator should have given you paperwork when you took the distribution that explains what type of withdrawal it was classified as under your specific plan. Also, remember that even if you qualify for an exception to the 10% penalty, you'll still owe regular income tax on the full $15,000. Make sure you've set aside enough money for that tax bill or adjust your withholding for the rest of the year if needed.

Watch out for state taxes too! Federal might not tax certain scholarships but some states have different rules. My roommate did exactly what ur talking about with the Roth conversion thing, saved a bunch on federal but got hit with unexpected state taxes cause our state counts more scholarship money as taxable than the IRS does.

Great advice from everyone here! One thing I'd add - make sure your friend gets any scholarship/fellowship documentation in writing from their university's financial aid office. I learned this the hard way when the IRS questioned how I reported my graduate stipend. Universities sometimes aren't super clear about what portions are taxable vs non-taxable, and having official documentation that breaks down tuition remission vs living expenses vs research stipends can be a lifesaver if you ever get audited. Also, if they're doing the Roth conversion, consider spreading it over multiple years if the amount is large. Even if they're under the standard deduction this year, converting a big chunk could bump them into higher tax brackets or affect other benefits like health insurance subsidies that others mentioned. The timing matters too - if they expect to have higher income next year (like transitioning from student to full-time work), this year might be the perfect opportunity for the conversion while they're in the 0% tax bracket.

I'm currently dealing with an inherited IRA situation myself and wanted to add some perspective on the professional help aspect that several people have mentioned. After initially trying to handle my mother's estate 1041 myself, I ended up working with both an estate attorney and a CPA who specializes in estate taxation. Here's what I learned about when you need each: The estate attorney was crucial for understanding the legal requirements around estate administration, probate compliance, and how the distributions needed to be structured according to state law. They also helped ensure we were meeting all the fiduciary responsibilities as executors. The CPA specializing in estates was essential for the tax strategy and planning. They helped us model different distribution scenarios, calculated the optimal timing across tax years, and handled all the complex Form 1041 calculations including the income distribution deductions and K-1 preparation. With a $450k IRA, you're looking at potentially significant tax implications that could cost tens of thousands if handled incorrectly. The coordination between the 1041, your personal returns, Pennsylvania inheritance tax, and the required minimum distribution rules really benefits from professional expertise. One specific suggestion: before making any distribution decisions, have a professional run projections showing the total tax cost under different scenarios (all at once vs. spread over multiple years, equal vs. optimized splits between beneficiaries, etc.). The upfront cost of professional guidance will likely be far less than the potential tax savings. Also, document everything meticulously - the IRS scrutinizes estate returns more closely than individual returns, especially when large IRA distributions are involved.

I've been through a similar situation with my father's estate, and I want to emphasize something that could save you significant money: consider the timing of when you formally close the estate versus when you take the final IRA distributions. Here's what I learned - if you close the estate in the same tax year as the final distribution, that income flows through to your personal returns via K-1s. But if you keep the estate open and take the final distribution in the following year, you might have more flexibility in managing your personal tax brackets. Also, regarding RMDs, one strategy my CPA recommended was to take the minimum required distributions to satisfy IRS requirements, but structure additional voluntary distributions based on your and your brother's individual tax situations each year. For example, if one of you has a lower income year due to job changes, retirement, or other circumstances, you could take a larger distribution to that person. Another consideration - with Pennsylvania's inheritance tax, the timing of when distributions are made versus when they're reported can affect both the inheritance tax calculation and your income tax obligations. PA has some specific rules about how inherited IRA income is treated that differ from federal treatment. Given the complexity and the substantial amount involved, I'd strongly recommend getting professional help before making any major decisions. The cost of expert guidance upfront will likely save you thousands in optimized tax planning. Document everything meticulously - estate returns with large IRA distributions do get more IRS scrutiny.