One more thing to consider - if you make over a certain amount from your contractor work (I think it's around $1,000), you'll need to file Schedule C along with your tax return. This is where you report business income and expenses. You'll also fill out Schedule SE for self-employment tax. Start keeping track of ALL business-related expenses now if you haven't already! Mileage for business travel (not commuting), home office if applicable, portion of internet/phone, software subscriptions, office supplies, professional development, etc. These can significantly reduce your taxable income.

This thread has been incredibly helpful! As someone who just started contracting this year too, I want to add one thing that caught me off guard - make sure you're tracking your business expenses from DAY ONE, not just when tax season approaches. I learned this the hard way when I realized I had forgotten to save receipts for legitimate business expenses like software subscriptions, equipment purchases, and even parking fees for client meetings. The IRS requires documentation for deductions, so having a system in place early (even something as simple as a dedicated folder or app) can save you hundreds or thousands in missed deductions. Also, don't forget about the home office deduction if you work from home regularly and exclusively use a space for business. You can either use the simplified method ($5 per square foot up to 300 sq ft) or calculate actual expenses. Even if it's just a corner of your bedroom that you use only for work, it might qualify! One last tip: consider making estimated payments for 2025 even if you're not required to. It helps with cash flow management and prevents that massive tax bill shock next April. You can always adjust the amounts throughout the year if your income changes.

I think a lot depends on what kind of disability pension you have from France. I went through this with my Spanish disability pension. There are two main types: contributory (based on what you paid into their system) and non-contributory (more like social benefits). They're treated differently under most tax treaties. If it's a government pension (paid because you worked for the French government), that's another category with different rules. Article 18 vs. Article 19 of the treaty applies differently. Also check if it's considered "not taxable in France" - some disability pensions aren't taxed in the country of origin, which affects how the US treats them.

The key thing to understand is that US citizens are subject to worldwide income taxation, so yes, you do need to report your French disability pension on your US return. However, you're absolutely right that this creates a double taxation issue - and that's exactly what tax treaties are designed to prevent. Since your pension is contributory (you paid into the French system) and partially taxed in France, you should be able to claim a Foreign Tax Credit on Form 1116 for the French taxes already paid. This will reduce your US tax liability dollar-for-dollar. Make sure your accountant is familiar with the US-France tax treaty, particularly Article 18 which covers pensions. Some disability pensions may qualify for reduced taxation or exemptions under the treaty provisions. You might also need to file Form 8833 if you're claiming specific treaty benefits. The IRS Publication 514 (Foreign Tax Credit for Individuals) has detailed guidance on how to calculate and claim the credit. Don't let the complexity discourage you - proper application of the treaty and foreign tax credit should prevent true double taxation.

Just wanted to chime in as someone who's been through this exact same situation! When I first started working, I was so overwhelmed by all the paycheck deductions that I actually thought there was an error for the first few months. One thing that really helped me understand everything was setting up a simple spreadsheet to track my gross pay vs. net pay each period, along with all the deduction amounts. It sounds nerdy, but it helped me spot patterns and understand when changes were normal vs. when something was actually wrong. For your specific $95 jump, definitely worth checking with HR, but also consider these possibilities: Did you recently become eligible for health/dental/vision insurance? A lot of companies have a 90-day waiting period, so at 3 months you might have just started getting those deductions. Also, if you got any kind of raise or bonus (even a small one), all your percentage-based deductions would increase proportionally. The acronyms become second nature after a while, but don't hesitate to ask your HR department for clarification on any company-specific codes. Most of them are happy to explain once rather than deal with ongoing confusion from employees!

I totally feel your pain on this! When I started my current job, I had the exact same confusion about all those cryptic acronyms. What really helped me was creating a simple "cheat sheet" by googling each abbreviation and writing down what it meant in plain English. For the $95 jump you mentioned - definitely worth investigating! A few things to check: Did you recently hit your 90-day mark and get enrolled in benefits like health insurance? That's super common and can cause a big jump in deductions. Also, did you get any overtime or bonuses this pay period? Even small increases in gross pay can bump up all your tax withholdings. One thing I learned the hard way is that some deductions are calculated as percentages of your gross pay, so any increase in earnings automatically increases those deductions too. Don't feel bad about not understanding this stuff right away - I think most people are just too embarrassed to ask about it, but payroll deductions are honestly pretty confusing when you're new to "real" jobs! I'd suggest reaching out to your HR department with your paystub and asking them to walk through each deduction with you. Most HR folks are happy to explain it once rather than deal with ongoing confusion from employees.

Just wanted to share another perspective as someone who works in tax preparation - you absolutely made the right call! The dual address system exists specifically to streamline IRS operations, and what you did is textbook correct. I see this confusion with clients all the time, especially during busy season. The key thing to remember is that Form 1040V (your payment voucher) has very specific instructions that direct payments to processing centers like Cincinnati, regardless of where your actual return goes. This isn't an oversight - it's intentional design. Here's something that might give you extra peace of mind: the IRS actually has redundant systems in place to catch and correct misdirected payments. Even if someone accidentally sent their payment to the wrong address, there are procedures to reroute it properly. But in your case, you followed the instructions exactly as intended. Since you're checking your bank account regularly, you should see that check clear within the next week or two. Once it does, you can be 100% confident your payment is in the system and will be properly credited to your account. The matching happens automatically using your SSN and tax year info from the 1040V form. You handled this perfectly!

I'm going through something very similar right now and this entire thread has been a lifesaver! I mailed my payment to the Cincinnati address about a week ago but kept second-guessing myself because my tax software gave me a different address for e-filing. Reading everyone's explanations about the separate processing centers makes so much sense now. I had no idea the IRS was set up this way - I always assumed everything just went to one big processing center somewhere. The fact that payment centers and document centers are specialized for different functions actually seems like a really smart system once you understand it. I'm definitely going to set up that IRS online account that several people mentioned to track when my payment gets processed. It sounds like that's the best way to get confirmation without having to deal with those notorious IRS phone wait times. Thank you all for sharing your experiences - it's amazing how much anxiety disappears when you realize you're not the only one who's been confused by this!

Random question from an accountant's wife: has anyone here calculated if it's actually cheaper to pay a Canadian accountant and a US accountant separately, or find one of those specialized cross-border accountants that do both returns?

As someone who's been navigating dual US-Canadian taxation for about 3 years now, I can confirm that while it's complex, it's definitely manageable once you understand the basics. A few key points that might help: 1. You'll almost certainly end up paying less in total taxes than you think. Canadian taxes are generally higher, so the foreign tax credits usually eliminate most US federal tax liability. 2. Don't forget about provincial taxes in Canada - they vary significantly by province and aren't covered under the treaty the same way federal taxes are. 3. If your employer offers stock options or RSUs, get professional advice ASAP. The timing of taxation between the two countries can create some really tricky situations. 4. Consider opening your Canadian accounts before you actually move - some banks are more willing to work with US persons if you establish the relationship while still in the US. The first year is definitely the hardest as you figure everything out, but it gets much more routine after that. Just budget for good professional help at least for the first filing to make sure you're set up correctly!