Has anyone here actually read the actual Australia-USA tax treaty text? I did (don't recommend unless you enjoy bureaucratic torture) and found Article 7 and Article 22 most relevant to your situation. The treaty basically says business profits are taxable primarily where you're a resident (Australia in your case), BUT if you have a "permanent establishment" in the US (like an office), the US can tax profits attributable to that establishment. Then Australia gives you credit for US tax paid. The GST issue is separate from the treaty though - that's purely Australian domestic law. Once you hit that $75k threshold from worldwide turnover, you're in the GST system for Australian sales only.

I've been through a similar situation with dual Australia-US income, and here's what I learned after consulting with a tax specialist who focuses on the Australia-USA treaty: The key thing to understand is that as an Australian tax resident, you're caught in Australia's worldwide taxation net. This means: 1. Yes, you must declare ALL income (including your $25k USD) to the ATO 2. Your GST registration is triggered by worldwide business turnover, so you'll need to register once you hit $75k combined 3. You cannot choose to be a US tax resident just for tax purposes - residency rules are strict and based on where you actually live and have ties However, the treaty does protect you from true double taxation through the foreign income tax offset system. You'll file in both countries but get credit in Australia for legitimate US taxes paid. One important note about permanent establishment that @Mei Lin mentioned - for consulting work, this usually requires a fixed place of business or staying more than 183 days. Working from clients' offices or coworking spaces temporarily typically doesn't create a PE. My advice: keep meticulous records of where each dollar was earned and what expenses relate to each jurisdiction. The ATO is getting increasingly sophisticated about tracking international income flows, especially with US reporting agreements in place. Consider getting professional advice specific to your situation - the treaty has many nuances that can significantly impact your tax liability.

One thing that caught me off guard my first year trading was that you might also owe quarterly estimated taxes if your stock gains are substantial. Since taxes aren't automatically withheld from capital gains like they are from your paycheck, the IRS expects you to pay as you go if you'll owe more than $1000 at year-end. For your $4000 situation, this probably won't apply, but it's something to keep in mind for future years if your trading activity increases. I learned this the hard way when I had a good year and got hit with underpayment penalties. Also, don't forget about state taxes! Some states don't tax capital gains at all, while others treat them the same as regular income. Make sure you check your state's rules too.

Just wanted to add a perspective as someone who made similar mistakes when I first started trading. The $4000 you mentioned - make sure you understand that's the gross proceeds, not your taxable gain. I initially panicked thinking I'd owe taxes on my entire withdrawal amount until I learned you only pay on the profit. Also, keep detailed records of everything! I learned this lesson the hard way when my broker's 1099-B had some errors in the cost basis. Having your own spreadsheet with purchase dates, amounts, and sale info saved me when I had to correct things with the IRS. One more tip - if you had any losing trades this year, don't forget you can use those losses to offset your gains. You can deduct up to $3000 in net capital losses against ordinary income, and carry forward any excess to future years. This "tax loss harvesting" can really help reduce your overall tax burden. Good luck with your first year of stock taxes - it gets easier once you understand the basics!

This is exactly the kind of situation where many US investors get caught off guard! Your concern is absolutely valid, and you're smart to think about this proactively. The key issue with IBKR is that they operate as a global network of entities. Even though you opened your account thinking it was purely US-based, certain international investments may automatically route through their foreign subsidiaries (IBKR UK, IBKR Hong Kong, etc.) for regulatory or operational reasons. Here's what you should do immediately: 1. Log into your IBKR Client Portal and download your most recent monthly statement 2. Look for any mention of "IBKR (U.K.) Limited", "IBKR Hong Kong", or other non-US entities in the account details or trade confirmations 3. Check if any of your European ETFs or commodity futures show foreign custody arrangements If you find any foreign entity involvement and your total foreign account values exceeded $10,000 at any point this year, you'll need to file FBAR by April 15th (with automatic extension to October 15th). For FATCA (Form 8938), the thresholds are higher but the penalties can be severe. Don't wait for your accountant to figure this out - these are specialized reporting requirements that many general tax preparers aren't familiar with. Better to be overly cautious than face the significant penalties for non-compliance.

I went through this exact same situation with IBKR about 6 months ago and it was a real eye-opener! Here's what I learned that might help you: IBKR's routing is largely automatic based on regulatory requirements and market access rules. Unfortunately, you can't really force them to keep everything with the US entity - when you buy European securities directly, they often MUST go through IBKR UK or other local entities due to MiFID II regulations and other local market rules. The good news is that if you're proactive about tracking this, it's manageable. I created a simple spreadsheet where I track: - Which securities are held by which IBKR entity (from monthly statements) - The maximum monthly balance for each foreign entity - Running totals to monitor FBAR thresholds One key thing I discovered: even if your total IBKR account value is below $10K, you might still hit the FBAR threshold if the foreign-held portion alone exceeds $10K. The reporting is based on the foreign accounts specifically, not your total investment portfolio. My advice would be to start tracking now even if you're below the threshold. It's much easier to have clean records from the beginning than to reconstruct everything later when you're scrambling to file. Plus, international investing tends to grow quickly once you get started, so you might hit those thresholds sooner than expected. The IRS has been increasingly focused on these compliance areas, so better safe than sorry!

Something nobody mentioned yet - look into the Qualified Business Income Deduction (Section 199A). Depending on your total income and the nature of your side gig, you might qualify for up to a 20% deduction on your net self-employment income. Its a bit complicated but worth checking out! For example, if your qualified business income is $65k after expenses, you could potentially deduct another $13k! There are income phaseouts though, so check if your total income puts you over the limits.

Great breakdown everyone! As someone who just went through this exact situation, I wanted to add a few practical tips that might help Brandon and others: 1. **Keep meticulous records** - I use a separate business checking account for all side gig income and expenses. Makes tracking so much easier at tax time. 2. **Business vs hobby distinction** - The IRS looks at whether you're trying to make a profit. If your side gig consistently loses money, they might classify it as a hobby, which limits your deductions. 3. **State considerations** - Don't forget some states have their own self-employment taxes or different rules for business income. Check your state's requirements too. 4. **Mid-year planning** - Since you're making good money on both sides ($130k + $65k), consider increasing your W4 withholding from your day job to help cover the extra tax burden from self-employment income. Sometimes easier than quarterly payments. The combination of self-employment tax + higher tax bracket can be a shock the first year, but with proper planning and all these deductions mentioned, it becomes much more manageable!

Has anyone used the IRS's own QBI worksheet rather than online calculators? I found it in the Form 1040 instructions and it seems more detailed than most online tools. It definitely accounts for the thresholds and limitations we're discussing.

The IRS worksheet is definitely the most accurate approach, but you're right about it being complex. As a CPA who helps clients with QBI calculations regularly, I always recommend starting with the official worksheet to get the correct baseline calculation before using any online tools. One tip that helps avoid calculation errors: work through each section methodically and double-check that your "qualified business income" number excludes reasonable compensation from your S-corp. I see clients mess this up frequently - they include their W-2 wages in the QBI amount when it should only be the remaining business profits. For Dylan's original question about the $340K joint income with $250K from the S-corp - make sure you're clear on whether that $250K is before or after your reasonable compensation. If it's after, then you're on the right track. If it includes your salary, you'll need to subtract that first to get your actual QBI amount.