I went through almost the exact same situation last year with a rental property in Germany! That tax preparer gave you terrible advice - you absolutely need to report worldwide income as a US tax resident. Here's what worked for me: I ended up using TaxAct (mentioned by Luca above) and it handled everything smoothly. The software automatically calculated my foreign tax credit and properly allocated the income between the forms. For your $3,500 in Australian taxes, you should definitely claim every penny of that credit. One thing I learned the hard way - make sure you get an official tax certificate from the Australian tax authority showing exactly how much you paid. The IRS might ask for this documentation later, and having the official document makes everything much cleaner than just bank records of payments. Also, since you mentioned you're no longer an Australian tax resident, double-check that you're not missing any treaty benefits between the US and Australia that might affect how your rental income is taxed. The tax software should catch this, but it's worth researching.

Your tax preparer gave you absolutely terrible advice! As a US tax resident on a work visa, you're required to report your worldwide income to the IRS, including that Australian rental property income. That preparer either doesn't understand international tax law or was trying to take shortcuts that could get you in serious trouble. Here's what you need to do: Report the rental income on Schedule E (Supplemental Income and Loss) and claim the foreign tax credit for those Australian taxes on Form 1116. FreeTaxUSA can definitely handle this - I've used it for similar situations and it walks you through both forms step by step. The $3,500 you paid to Australia should reduce your US tax liability dollar for dollar (subject to certain limitations). Make sure you have good documentation of those Australian tax payments and use the proper exchange rates (IRS publishes annual averages, or you can use the rates from the actual payment dates). Don't let that preparer's ignorance cost you thousands in overpaid taxes or potential penalties for underreporting income!

Adjust your W-4 withholdings at work NOW to prepare for this change! My wife and I got hit with a huge shock when we couldn't claim our son anymore. Our refund dropped by almost $3800 and we weren't ready for it. Instead of getting a smaller refund, you could adjust your withholding to have less taken out of each paycheck throughout the year. This gives you more money with each check instead of waiting for a big refund. Just fill out a new W-4 with your employer.

I went through this exact situation two years ago with my oldest! You're right that 2024 will be the last year for the Child Tax Credit since she'll be 17 at the end of the year. But don't panic - there are still significant tax benefits available. If your daughter goes to college and meets the dependency requirements (full-time student under 24, lives with you more than half the year, you provide more than half her support), you can still claim her as a dependent. The American Opportunity Credit alone can be worth up to $2,500 per year for the first four years of college - that's actually MORE than the Child Tax Credit! Also, with your income level around $76k combined, you should definitely look into the Earned Income Credit with your younger child. And once you have college expenses, those education credits can really add up. The key is planning ahead - start researching what documentation you'll need for education credits and consider adjusting your withholding so you're not counting on that big refund. The financial impact might not be as bad as you think once you factor in all the education benefits available.

This has been such a helpful thread! I'm in a similar boat - first time using a professional preparer after years of doing my own taxes with TurboTax. My situation got complicated with some freelance income and I was totally lost. My preparer was amazing and found several business deductions I had no clue about. I was definitely thinking about tipping since that's my instinct when someone provides great service, but reading all these responses from actual tax professionals really opened my eyes. I love the idea of a coffee shop gift card - that feels like the perfect middle ground between showing appreciation and staying professional. And I definitely need to write a detailed Google review. She spent almost an hour explaining estimated quarterly payments to me which probably saved me from underpayment penalties next year. Thanks everyone for the education on proper etiquette here! It's so different from other service industries but makes total sense.

As a tax professional myself, I really appreciate this whole discussion! It's refreshing to see people wanting to show appreciation appropriately. The gift card to a local coffee shop is honestly perfect - we absolutely run on caffeine during tax season and it shows you put thought into something we'd actually use. The $25-50 range mentioned earlier is spot on. But I have to echo what others have said - detailed Google reviews are pure gold for us. When you mention specifics like "found business deductions for my freelance work" or "explained quarterly estimated payments," that tells future clients exactly what kind of expertise we offer. Those reviews bring in clients who are actually a good fit for our services. One more thing - if your preparer offers year-round tax planning consultations (many of us do), that's another great way to show appreciation. Coming back for mid-year check-ins or planning sessions shows you value the relationship beyond just the annual filing. Plus it often saves you money in the long run!

Dealing with tax debt is rough! But dont worry, the system is actually designed to only take from federal refunds for state tax debt. Its part of the Treasury Offset Program. I work with tax issues and seriously recommend using taxr.ai to get a clear picture of your situation. It breaks down exactly how offsets will affect your refund and when youll get paid. Its been a game changer for my clients dealing with offset confusion. Shows you everything from processing dates to expected deposit times. Best part is it only costs a dollar!

Just went through this exact situation last month! The good news is they'll only take from your federal refund for state tax debt. I owed about $800 to my state and was worried they'd hit both refunds too, but they only took it from federal. Got my full state refund a few weeks later. The offset letter should tell you exactly how much they're taking - definitely save that for your records!

Having gone through a correspondence audit myself, I can confirm that most individual audits (about 75%) are handled entirely through mail. The IRS will send you a very specific letter (CP2000 or similar) that clearly states what they're questioning and exactly what documentation they need. Key tips from my experience: - Read the letter carefully and ONLY address what they're asking about - Make copies of everything before sending - Use certified mail with return receipt - Include a cover letter explaining each document you're sending - Don't volunteer additional information beyond what they requested The whole process took about 2-3 months for me, and I never had to speak to anyone. They either accept your documentation and close the audit, or they'll send another letter if they need clarification on something specific. Most importantly - don't panic! The vast majority of audits are routine verification processes, not criminal investigations. Stay organized, respond promptly, and stick to the facts.

Just want to add one more thing that really helped me during my correspondence audit - keep a detailed timeline of everything! I created a simple spreadsheet with dates for when I received the initial letter, when I mailed my response, when I got confirmation they received it, etc. This was super helpful because the IRS gives you specific deadlines to respond (usually 30 days), and if you miss them, they can make changes to your return without your input. Having everything documented also helped me stay organized and not panic about whether I'd forgotten to do something. Also, if you're missing any of the requested documents (like a receipt you can't find), don't ignore that item. Instead, explain in your cover letter what happened and provide any alternative documentation you have. For example, if you lost a receipt, you might include a bank statement showing the transaction plus a letter explaining the business purpose. The IRS is usually reasonable about working with you if you're transparent about what you can and can't provide.