Has anyone considered the state tax implications of MFS vs MFJ? Some states have different rules than federal. My wife and I found that while federal was slightly better filing jointly, our state taxes were significantly better filing separately because of how our state handles itemized deductions.

Something nobody's mentioned yet - you should consider future tax planning too. If you think your income might change significantly next year (like one person taking time off work or getting a big promotion), that could affect which filing status makes sense this year due to things like AMT planning and tax loss harvesting across years.

This is a great question and I'm glad to see so many helpful responses already! I went through this exact scenario with my rental property business last year and learned a lot through trial and error. One thing I'd add to the excellent advice already given - make sure you're paying your kids a truly reasonable wage for the work they're doing. The IRS scrutinizes family employment situations closely, so paying your 15-year-old $50/hour for basic cleaning would definitely raise red flags. I researched what other teens in my area were earning for similar work and kept my kids' pay within that range. Also, consider having them open their own business checking accounts to deposit their paychecks. It creates a cleaner paper trail and helps teach them financial responsibility. My kids love watching their Roth IRA balances grow - it's been a great way to get them interested in investing and long-term financial planning. The documentation is key though. I keep detailed logs of not just hours worked, but specific tasks completed, materials used, and even photos of the work being done. Better to over-document than under-document when it comes to family employment!

This is such a smart financial strategy! I wish my parents had thought to do this when I was younger. One thing I'd add that hasn't been mentioned yet - make sure you understand the kiddie tax rules if your children have other investment income. While earned income from working in your business is generally taxed at their own rates (likely 0% or very low), if they have significant unearned income from other sources (like dividends, interest, or capital gains over $2,650 in 2025), it could be taxed at your marginal rate instead of theirs. This usually isn't an issue for most families, but it's worth being aware of as their investment accounts grow over time. The Roth IRA strategy is fantastic though - starting retirement savings at 15-17 gives them such a huge head start with compound growth. Even if they never contribute another dollar after age 18, those early contributions will be worth a fortune by retirement. You're setting them up for financial success in a big way!

I went through this exact same struggle last year with my J-1 visa from Canada! The language barrier definitely makes these forms even more confusing than they already are. One thing that really helped me was finding the actual treaty text between the US and Spain on the IRS website. Search for "United States Spain Income Tax Treaty" and look for the PDF. Article 20 is usually the one that covers students and trainees - it should give you the exact language you can reference in your Form 8833. Also, don't feel bad about calling the IRS multiple times if you need to. I called three different times and got three different answers, but the third agent was really knowledgeable about international treaties and walked me through everything step by step. For what it's worth, I found that keeping my answers in the boxes simple and straightforward worked better than trying to be too detailed. The IRS just wants to understand your situation clearly. ¡Buena suerte! You've got this - it's definitely intimidating but once you get through it the first time, next year will be much easier.

I completely understand your frustration with Form 8833 - I went through the same struggle when I was on my J-1 visa from the Netherlands a couple years ago. The language barrier definitely makes these already complex forms even more challenging. Here's what worked for me: Start by finding your specific treaty article on the IRS website. For Spain, you'll want to look up the US-Spain Income Tax Treaty and find Article 20, which typically covers students and trainees. This will give you the exact language to reference in your form. A few practical tips that helped me: - Keep your explanations in each box concise and factual rather than overly detailed - For Box 4, only include income that's specifically exempt under the treaty (like stipends or scholarships related to your J-1 program) - Don't be afraid to call the IRS international tax line multiple times - I found some agents much more knowledgeable than others One thing I wish I'd known earlier: if you're receiving any payments from Spanish institutions or organizations as part of your J-1 program, those are typically the amounts you'd claim exemption for, not any side income from US sources. The first year is definitely the hardest, but once you get through it and understand the process, subsequent years become much more manageable. ¡Ánimo!

Real talk - once you see code 150, look for cycle code next to it. That can tell you what day of the week updates happen for your account. Major 🔑 to watching your transcript!

Code 150 is definitely one of the most important ones to understand! It's basically the IRS's way of saying "we've processed your return and here's what we calculated." The date next to it shows when they finished processing, and the amount shows your total tax liability. From there you can track if you have credits, payments, or refunds coming by looking at the other transaction codes that follow. It's like the foundation that everything else builds on!

Just wanted to mention that recreating a depreciation schedule isn't necessarily super expensive. I'm surprised your new tax pro is making a big deal about it. When I switched accountants, mine recreated 8 years of depreciation schedules for about $150. They said it was pretty straightforward since residential rental property typically uses straight-line depreciation over 27.5 years. You might want to ask for a specific quote before assuming it'll be expensive. Also worth considering is that you'll need this documentation whenever you sell the property to properly calculate your adjusted basis and depreciation recapture, so it's an investment in proper record keeping.

I'm a CPA and this situation is unfortunately more common than it should be. Your previous preparer was absolutely required to file Form 4562 if they were claiming depreciation on your rental property - there's no way around it in legitimate tax software. What likely happened is one of two scenarios: 1) They were filing the form but just not giving you copies (which is still poor practice), or 2) They were manually entering depreciation amounts without properly completing the required schedule (which is concerning from a compliance standpoint). Before paying to recreate everything, I'd strongly recommend requesting your complete tax return transcripts from the IRS first. You can do this online through the IRS website or by calling them. The transcripts will show exactly what forms were filed with your returns. If Form 4562 was actually filed, you can request complete copies of your returns including all schedules. If the forms weren't filed properly, then yes, recreating the depreciation schedule is necessary and worth the investment. Just make sure your new preparer gives you copies of everything going forward - you should always have a complete copy of your tax return including all schedules and supporting documentation.