Random question - how many family members do you all typically help with taxes? I'm currently doing returns for my parents, 2 siblings, and my in-laws, and it's gotten overwhelming. Considering asking for POA just to save time like the original poster suggested.

Great question about helping family/friends with POAs! I've been doing this for about 6 years now and it's completely legitimate as long as you maintain proper separation from your firm work. A few additional tips from my experience: 1. Keep detailed records of which POAs you've filed and for whom - I use a simple spreadsheet with names, dates filed, and status. This helps when the IRS inevitably loses paperwork. 2. Consider setting an annual limit on how many people you'll help. I cap mine at 10 family members because beyond that it becomes like running a second practice. 3. For the phone number question - yes, you can include multiple numbers. I put my cell as primary and home as secondary right in the contact section. Never had an issue with this. 4. Pro tip: Submit your 2848s early in the year (January/February) when IRS processing is faster. During busy season, POAs can take 8-12 weeks to process versus 3-4 weeks in quieter months. One thing I learned the hard way - always keep copies of the signed 2848s. The IRS has "lost" mine before and without the original signature, you're stuck waiting for them to mail a new one to your family member to re-sign. The transcript access alone makes this worth doing - you'd be surprised how many times I've caught missing 1099s or other issues that would have caused problems later.

Just FYI - I've been on F1 for 7 years now and file as a resident. The tuition and education credits alone saved me over $1500 last year. Definitely worth looking into if either of you has been here more than 5 years.

I went through this exact situation two years ago! My spouse and I were both on F1 visas, and we were able to file jointly after my spouse hit the 5-year mark. Here's what I learned: The key is that once an F1 student has been in the US for more than 5 calendar years, their days start counting toward the substantial presence test. If they meet that test, they become a resident alien for tax purposes. The resident spouse can then make an election under IRC Section 6013(g) to treat the non-resident spouse as a resident, allowing you to file jointly. You'll need to file Form 1040 (not 1040NR) and include a statement with your return making this election. The statement should specify that you're electing to treat the non-resident spouse as a resident for the entire tax year. A few important points: - This doesn't affect your visa status at all - it's purely for tax purposes - You'll need to report worldwide income, so factor that into your calculations - Your past FICA exemptions remain valid for those years when you qualified - The savings can be substantial due to access to education credits, standard deduction, and potentially lower tax brackets I'd strongly recommend running the numbers both ways (joint vs. separate non-resident returns) before deciding, as the worldwide income reporting requirement could impact the benefits depending on your situation.

Here's a super simple way I calculated mine: Marginal rate: Look at the tax bracket where your last dollar of income falls. For married filing jointly in 2023, if your taxable income was between $89,451 and $190,750, your marginal rate is 22%. Effective rate: Line 24 (total tax) ÷ Line 9 (total income) × 100 = your percentage

Great question! As someone who also has both W-2 income and self-employment income, I can relate to the confusion around calculating these rates properly. Here's what I've learned from my own experience: **For Marginal Rate:** Find your taxable income on line 15 of your 1040, then look up which tax bracket that puts you in for married filing jointly. That bracket percentage is your marginal rate for federal income tax. But remember, any additional self-employment income will also be subject to the 15.3% self-employment tax (though you get to deduct half of it). **For Effective Rate:** This is where it gets tricky with self-employment income. You want to divide your total tax burden by your total income. So add up: - Line 24 (total tax from 1040) - Line 4 from Schedule 2 (self-employment tax) Then divide that sum by your total income (W-2 wages + net profit from Schedule C). One thing that really helped me understand this better was realizing that my effective rate tells me what I actually paid on average, while my marginal rate tells me what I'd pay on the next dollar I earn. This distinction is super important for planning whether to take on more consulting work! The self-employment tax piece definitely makes it more complex than just having W-2 income, but once you understand the components, it becomes much clearer.

Sales tax is so random too! In my state clothes are tax free but only if they cost less than $175 per item. And basic groceries aren't taxed but prepared foods are. And don't get me started on digital purchases and subscription services - the rules are all over the place depending on where you live. Pro tip: keep track of all the sales tax you pay throughout the year - you can deduct either your state income tax OR your sales tax on your federal return, whichever is higher. If you make big purchases in a year like a car or major appliances, the sales tax deduction can sometimes be better!

I totally understand your frustration! This is one of those things that seems unfair until you understand how the system works. Think of it this way - income tax is like paying for your "membership" in society (funding federal programs, defense, etc.), while sales tax is more like paying for the specific services in your community each time you use them. The $43 in sales tax you paid is actually going toward local things like maintaining the roads you drove on to get to the mall, the police who keep that area safe, and the fire department that would respond if there was an emergency. It's not the same money being taxed twice - it's different taxes for different purposes. That said, there are definitely ways to be smarter about sales tax! Many states don't tax necessities like groceries and prescription drugs. And if you're buying work clothes, some states have special exemptions for uniforms or work-related clothing. You might also want to time big purchases around your state's tax-free weekends if they have them.

Something nobody's mentioned yet - you might want to look into the IRS Fresh Start program. It's designed specifically for people with tax debt who need manageable payment options. With your income level and no assets, you'll likely qualify for an installment agreement. If you're really struggling financially right now, you might even qualify for an Offer in Compromise, where the IRS accepts less than the full amount owed. That's harder to get, but worth exploring.

You're absolutely right to tackle this head-on now. Five years of unfiled 1099 income is serious, but the IRS does appreciate voluntary compliance and you have options. First priority: Get a CPA who specializes in tax resolution or back taxes. Don't try to handle this alone - the penalties and interest calculations are complex, and you'll want someone who knows how to maximize deductions and negotiate with the IRS. Quick reality check on what you're facing: You're looking at roughly $135k x 5 years = $675k in unreported income. As a 1099 contractor, you'll owe both income tax AND self-employment tax (15.3%). Even with deductions, you're probably looking at $150k-200k+ in taxes, plus penalties and interest that could add another 50-75% to that amount. The good news is payment plans are very doable. The IRS would rather collect over time than not at all. Start gathering every piece of financial documentation you can find - bank statements, any 1099s you received, receipts for business expenses, etc. The more legitimate deductions your CPA can find, the less you'll owe. Don't wait any longer. The penalties and interest are accruing monthly, and voluntary compliance will always get you better treatment than if the IRS finds you first.