Has anyone successfully claimed the Foreign Tax Credit for Belgian taxes? I keep getting confused because some of the pension is taxed by their social security system and some by their regular tax system. Not sure if both count for the credit.

Great thread everyone! I'm dealing with a similar situation with my grandmother's Belgian pension. One thing I learned from our tax preparer is that you should also check if your state has any specific rules about foreign pension income. Some states don't tax foreign pensions at all, while others follow federal treatment. In our case, we're in a state that doesn't tax retirement income, so even though we had to report it federally and deal with the treaty provisions, there was no additional state tax burden. Also, make sure to keep copies of ALL the Belgian tax documents - not just the pension statements but also any tax certificates showing what was withheld. The IRS may ask for these if they have questions about your Foreign Tax Credit claim. Better to have everything organized upfront than scramble later!

Just wanted to add another perspective here - I've been in a similar situation with my partner for about 3 years. We've found that keeping things simple and proportional to income really helps avoid any potential issues. What we do is calculate our combined monthly expenses (rent, utilities, groceries, etc.) and then each contribute based on our income percentage. So if I make 60% of our combined income, I put in 60% of the shared expenses. This way neither of us is really "gifting" money to the other - we're just paying our fair share. The IRS is generally more concerned with large, one-sided transfers that look like you're trying to avoid gift taxes. Normal cost-of-living sharing between cohabiting partners, even unmarried ones, typically doesn't raise red flags as long as it's reasonable and proportional. That said, definitely keep some basic records like others have mentioned. Even just saving your bank statements and maybe a simple note about your arrangement could be helpful if questions ever come up later.

This is really helpful information from everyone! I'm in a similar situation with my partner and we've been wondering about this exact issue. One thing I'd add is that it's worth considering setting up a separate "household" account that you both contribute to proportionally, rather than just having one person deposit large amounts that the other uses. That way there's a clearer paper trail showing both people contributing to shared expenses. We started doing this after reading about potential gift tax issues, and it makes everything much more transparent. Each month we calculate our shared expenses (rent, utilities, groceries, etc.) and transfer our proportional shares based on income into the household account. All shared expenses come out of that account, while our personal spending stays in our individual accounts. This approach has given us peace of mind that we're clearly not making gifts to each other - we're just each paying our fair share of living expenses. Plus, if we ever need to explain our arrangement to the IRS or anyone else, the documentation is crystal clear. The key thing seems to be maintaining that proportionality and keeping good records, which several people have mentioned. As long as you're not just having one person fund everything while the other benefits without contributing, you should be fine tax-wise.

Jacob, I totally understand the overwhelm - filing taxes for the first time while juggling eBay sales can feel really confusing! Based on what you've described, here's the bottom line: Since you made $1,300 in sales but originally paid $650-700 for those items, you're looking at roughly $600-650 in profit. However, since these were personal items that have likely depreciated over time, your actual taxable profit might be even less (or possibly zero if you factor in reasonable depreciation). The key things to know: - eBay will likely send you a 1099-K since you exceeded $600 in sales - You only report actual profit, not the full sales amount - Personal items sold at a loss aren't taxable income - Keep records of what you originally paid (or reasonable estimates) For your first time filing, I'd recommend using software like FreeTaxUSA that can walk you through reporting this income properly. It's way cheaper than the premium tax software versions, and for a straightforward situation like yours, you probably don't need to pay for a tax preparer. The most important thing is not to stress too much - the IRS understands the difference between someone occasionally selling personal items and someone running an actual business. Just be honest about your actual profits and you'll be fine!

Jacob, I completely understand your situation - I was in almost the exact same spot when I first started filing taxes! The good news is that your situation is actually pretty straightforward once you understand the basics. Since you sold $1,300 worth of personal items that originally cost you $650-700, you're looking at roughly $600-650 in profit. However, there's an important concept called depreciation to consider - most personal items (clothes, electronics, collectibles) lose value over time through normal wear and use. So even though you made $1,300 in sales, if these items had depreciated since you originally bought them, your actual taxable profit could be much lower or even zero. The IRS really distinguishes between people who are running actual reselling businesses versus folks like you who are just cleaning out their closets. Since these weren't items you bought specifically to resell, and you're not doing this regularly as a business, you're in a much simpler tax situation. You'll likely receive a 1099-K from eBay since you exceeded $600 in sales, but remember - that form just shows your gross sales, not your taxable profit. You only pay taxes on the actual profit after accounting for what you originally paid and reasonable depreciation. For your first time filing, I'd suggest using one of the free or low-cost tax software options that can walk you through this step by step. Don't stress too much - the IRS isn't trying to penalize college students selling old stuff!

Don't forget about state taxes too! My wife is a nonresident alien and we file jointly for federal, but some states have different rules. In California where we live, we had to file a separate nonresident state return for her foreign income even though we filed jointly for federal. Check your state's rules!

Just want to add another perspective here - we went through this exact situation last year and successfully filed jointly with the standard deduction. The key thing that helped us was understanding that the election to treat your NRA spouse as a resident is made simply by filing a joint return and including both spouses' worldwide income. You don't need to file any separate forms to make this election - it's automatic when you file Form 1040 jointly. However, you do need to attach a statement signed by both spouses saying you're making this election (this is the part many people miss). One tip: calculate both ways before deciding. We ran the numbers filing separately vs. jointly and the standard deduction savings from filing jointly more than offset the extra tax on my husband's foreign income. But every situation is different depending on income levels and what country the foreign income comes from (tax treaties matter!). The IRS Publication 519 has the clearest explanation of this if you want the official source, specifically the section on "Nonresident Spouse Treated as Resident.

Has anyone tried the IRS's W-4 calculator? I think it's free and supposedly helps you figure out proper withholding based on multiple jobs. Wondering if it would solve part of your problem at least for the W2 portion?

I've been dealing with a similar situation - multiple income streams including S-corp income can really mess with your withholding calculations! One tool that's worked well for me is FreeTaxUSA's TaxCaster. It's free and handles S-corp salary vs distribution scenarios better than most consumer tools I've tried. The key thing I learned is that you need to track your S-corp salary as regular W-2 income for withholding purposes, but then account for the self-employment tax savings compared to if that income was straight 1099. Most calculators miss this nuance. Also, don't sleep on making quarterly estimated payments - even if your withholding is close, having that extra buffer from estimated payments can save you from underpayment penalties. I set up automatic transfers to a separate "tax savings" account so the money is there when quarterly dates roll around. The IRS safe harbor rule is your friend too - if you pay 100% of last year's tax liability through withholding + estimated payments (110% if your AGI was over $150k), you won't owe penalties even if you end up owing more at filing time.