Just to add another perspective - I'm an expat who's lived abroad for years, and the foreign earned income exclusion (Form 2555) is different from your situation. That's for people who are genuine residents of foreign countries. Since your situation is a temporary absence and you intend to return to the US, you're still considered a US resident for tax purposes, which actually helps with your EIC eligibility. Make sure you don't accidentally file as a foreign resident which would definitely disqualify you from EIC.

Based on what you've described, you should still be eligible for the Earned Income Credit. The IRS recognizes that temporary absences due to circumstances beyond your control (like travel restrictions during emergencies) don't automatically disqualify you from EIC if you maintain your US residence and intend to return. The key factors working in your favor are: 1) Your absence was unplanned and involuntary, 2) You maintained your US ties and residence, and 3) You have clear intention to return. With only $3,800 in earned income, you're well within the income limits for EIC. Make sure to keep documentation of your situation - any records showing why you couldn't return (travel restrictions, family emergency details, etc.) and evidence that you maintained your US residence (lease payments, bank accounts, etc.). File your return as a US resident - don't use any foreign residency forms since your situation is temporary. You should be able to claim the EIC without issues, but having that documentation ready will help if the IRS ever has questions about your residency status during 2023.

As someone who made this exact switch as an audiologist, I strongly recommend having her talk to an accountant who specializes in healthcare professionals before making any decisions. There are some healthcare-specific considerations that general tax advice might miss. For example, malpractice insurance is typically covered by employers for W-2 employees but can cost $5k-$10k annually for independent contractors. Also, the Qualified Business Income deduction (Section 199A) has special limitations for healthcare professionals that might affect the calculation.

I'm a CPA who works with a lot of healthcare professionals, and this is a decision that really depends on the specific numbers and circumstances. The key factors to consider: **Tax implications:** Yes, she'd face the full 15.3% self-employment tax vs. splitting it with her employer now. But she'd also gain access to business deductions and potentially the 20% Section 199A deduction (though this has income limitations for healthcare professionals). **Benefits analysis:** Quantify what she's currently receiving - health insurance, retirement matching, malpractice coverage, paid time off. These often add 25-35% to total compensation value. **Business expenses:** The mileage between office locations could be deductible (not home commuting), continuing ed costs, home office if used exclusively for work, equipment, and professional licenses/memberships. **Quarterly taxes:** As a 1099, she'd need to make estimated quarterly payments and manage cash flow more carefully. My recommendation: Have her request the specific compensation increase needed to make 1099 worthwhile (usually 30-40% more than current W-2), then run detailed projections with a healthcare-focused CPA. The employer might decline anyway since reclassifying employees as contractors has IRS compliance risks if she doesn't meet true independent contractor criteria.

Just wanted to add another important consideration - make sure you understand the difference between deductions and credits. A lot of people get confused thinking a $54k deduction means $54k back in their pocket, but as Olivia mentioned, it's a reduction in taxable income, not a dollar-for-dollar credit. Also, consider the timing of your purchase. If you buy the van late in the year, you can still take the full Section 179 deduction for that tax year (assuming it meets the business use requirements). But if you're planning to use actual expenses method instead, you might want to factor in when you'll have the most business income to offset. One more thing - if you're financing, remember that the interest on a business vehicle loan is also deductible as a business expense. So even though financing doesn't change the depreciation/Section 179 deduction, you get additional deductions for the interest payments over the life of the loan. Given that you currently owe $5-7k in taxes annually, a large deduction like this could potentially eliminate your tax liability entirely in the first year, depending on your total business income and other deductions.

One thing I'd strongly recommend is getting professional tax advice specific to your situation before making this purchase decision. While the general information shared here is helpful, a $72k vehicle purchase with potential $50k+ deductions can have significant implications for your overall tax strategy. A qualified tax professional can help you model different scenarios - new vs used, Section 179 vs regular depreciation, timing of the purchase, etc. They can also ensure you're maximizing other business deductions you might be missing and help you plan for future years since taking a large Section 179 deduction in year one affects your depreciation options going forward. Also consider your business income projection for this year. If you're typically owing $5-7k in taxes, that suggests your taxable business income is probably in the $20-30k range (depending on your tax bracket). A $50k+ deduction might create more tax benefit than you can use in one year, so understanding carryforward rules or alternative strategies could be valuable. The mileage tracking advice everyone mentioned is crucial too. Start tracking now with one of those apps before you make the purchase - it'll give you concrete data on your actual business use percentage and help justify your deductions.

I switched from TurboTax to FreeTaxUSA last year specifically because of K-1 issues. FreeTaxUSA handles K-1 entries much more intuitively and puts everything on the right schedules automatically. TurboTax is notorious for hiding the K-1 entry screens unless you know exactly where to look, and their support staff often give contradictory advice as you've discovered. With FreeTaxUSA, it's all clearly labeled and you can see exactly where your K-1 items are flowing on your return.

As someone who's dealt with this exact situation, I can confirm what others are saying - partnership K-1 income must go on Schedule E, Part II, never on Schedule C. The confusion happens because TurboTax Self-Employed is really designed for sole proprietors, not partnership members. Here's what worked for me: First, upgrade to TurboTax Premier if you're still on Self-Employed - it has much better K-1 support. Then go to Federal > Income & Expenses > Less Common Income > Partnership/S-Corp K-1. This will properly flow everything to Schedule E. The key is understanding that Schedule C is only for businesses you personally own and operate. Since you're a member of an LLC partnership, you're not operating the business directly - you're receiving your share of the partnership's income/loss through the K-1, which is why it goes on Schedule E. For your amended return, make sure to remove any partnership income that might have been incorrectly reported on Schedule C to avoid double-counting. The IRS is very particular about this distinction, so getting it right now will save you headaches later.

One thing nobody mentioned yet is that you may still be required to file FBARs (FinCEN Form 114) if your foreign bank accounts exceed $10,000 in aggregate at any point during the year. This is separate from tax filing!

Hey Kristian! I was in almost the exact same situation a few years ago - dual US/German citizen who moved abroad at 18 and was completely overwhelmed by the tax requirements. Here's what I wish someone had told me from the start: Yes, you absolutely need to file US taxes every year regardless of where you live or work. But the good news is that with the Foreign Earned Income Exclusion and Foreign Tax Credits, you'll likely owe $0 in actual US taxes on your Italian income. A few practical tips for your situation: - You can use your Italian address on your US tax forms - Keep detailed records of your days outside the US to qualify for exclusions - Open a separate folder for all tax documents now - you'll thank yourself later - Consider getting professional help for your first filing to understand the process The filing deadline for expats is automatically extended to June 15th (with option to extend further to October 15th), so you have more time than US residents. Don't let the complexity scare you away from compliance - the penalties for not filing are much worse than just doing it properly from the start. Feel free to ask if you have specific questions about the process!