I'm going through this exact scenario in Guam! My CPA here says not to worry - if the IRS ever questions why you haven't filed US returns, they'd send a notice first asking for an explanation before jumping to audit. At that point, you'd just respond with copies of your territorial tax returns and proof of bona fide residency. The $75k threshold is there because the IRS doesn't want to process thousands of forms from people they're not too concerned about. The only people I know who've had issues are those who claimed to be bona fide residents but weren't actually living in the territory full-time or were trying to claim benefits from both systems.

This is really helpful information from everyone! I'm in a similar situation in American Samoa and have been wondering about the same things. One thing I'd add based on my research - even though we're under the $75k threshold, it's worth understanding the "closer connection" test that the IRS uses to determine bona fide residency. They look at factors like where your permanent home is, where your family lives, your business/employment location, driver's license, voter registration, etc. I keep a folder with all this documentation updated annually - copies of my territorial tax returns, lease agreements, utility bills, bank statements showing local address, employment contracts, and even photos of my residence. It might seem like overkill, but if questions ever arise, having a comprehensive record of your life in the territory makes proving bona fide residency much easier. The key insight from Owen Jenkins about the statute of limitations not starting until they have notice is concerning though. Makes me think about whether I should proactively send that letter he mentioned, even years after establishing residency here.

Just a warning - I had this same issue last year, ignored it thinking it was just a system glitch, and ended up with a massive headache. Turned out there was a typo in my SSN on my return (my fault) that caused the WMR error. The return was "accepted" because that just means the file format was valid, not that all the information was correct. I'd suggest getting a transcript if possible - if you can access that, your info is correct. If not, there might actually be an issue. I lost 6 weeks thinking it was just a system problem before I finally called and sorted it out. Just sharing so you don't make my mistake!

I'm going through this exact same situation right now! Filed on February 25th, got acceptance confirmation the next day, but WMR has been giving me the "information incorrect" error for over two weeks. I was starting to panic thinking something was wrong with my return. Reading all these responses is actually really reassuring - it sounds like this is way more common than I thought. I've been triple-checking my SSN, filing status, and refund amount ($2,891) but keep getting the same error. I think I'll try accessing my tax transcript like several people suggested instead of obsessing over WMR. It's good to know that the acceptance confirmation is what really matters and that these systems don't always sync up properly. Thanks everyone for sharing your experiences - definitely helps ease the anxiety!

The key thing to remember is that you're already ahead of most people by thinking about this proactively! I run a small freelance writing business and went through this same panic when I first started making money through payment apps. A few practical tips from my experience: 1. Yes, you need to report this income on Schedule C regardless of whether you get a 1099-K form. The $600 threshold just determines if payment processors send you and the IRS a form, but your obligation to report income hasn't changed. 2. For documentation, your Apple Cash screenshots are actually fine - just make sure they show the date, amount, and ideally what the payment was for. Create a simple spreadsheet now with columns for date, amount, client/description, and keep it updated going forward. 3. Don't forget about business deductions! Things like repair supplies, any software you use for tutoring, a portion of your phone bill, even some textbooks if you reference them for tutoring could potentially be deductible. 4. Consider opening a separate checking account for your business income. Makes tracking so much easier and looks more professional if you ever do get audited. You don't necessarily need a business license for this scale, but check your college's policies too - some schools have rules about students running businesses on campus or in dorms. The IRS isn't going to come knocking down your door over $4,800, especially if you report it properly. Just get organized now and you'll be fine!

I went through this exact same situation last year with my campus tutoring business! Made about $6,200 through various payment apps and was completely stressed about taxes. Here's what I learned: First, definitely report the income on Schedule C - even if you don't get a 1099-K, you're still required to report all earnings. The good news is that your Apple Cash screenshots are totally acceptable documentation. I used mine and had no issues. Second, start tracking business expenses NOW. You'd be surprised what you can deduct - I was able to claim portions of my internet bill, supplies for tech repairs, even some educational materials I bought specifically for tutoring. It reduced my taxable income by almost $1,500. For self-employment tax, yes it's about 15.3% on your net profit (after business deductions), but remember you can deduct half of it on your main tax return, which helps offset some of the sting. The IRS isn't going to target small operations like yours, especially if you're making an honest effort to comply. I was terrified they'd audit me, but my tax preparer said audits for small side businesses under $10K are extremely rare unless there are obvious red flags. Start keeping better records going forward - simple spreadsheet with date, amount, client, and what service you provided. Open a separate bank account if you can (doesn't need to be a business account, just one you use only for this income). And consider setting aside 25-30% of each payment for taxes so you're not scrambling next April. You're already ahead of most people by thinking about this proactively. Just get organized and report everything properly - you'll be fine!

Has anyone else noticed that withholding seems super messed up lately? I claimed 0 dependents like OP but I'm still getting way less taken out than last year. I'm worried I'll owe a ton when I file.

Connor, you're definitely not overthinking this! Your approach is actually really smart - claiming 0 dependents on your W-4 will indeed maximize your withholding throughout the year, which often leads to a larger refund when you file. The key thing to remember is that your W-4 withholding and your actual tax return are two completely separate processes. Your W-4 is just telling your employer how much to withhold from each paycheck as an estimate, while your tax return reflects your actual tax situation for the year. Since you have the legal right to claim your son as a dependent for the 2025 tax year (based on your custody agreement), you can absolutely claim him when you file your return, regardless of what you put on your W-4. This might actually work out perfectly for you - you'll have extra tax withheld all year, then get credit for your dependent when you file, potentially resulting in a nice refund. Just make sure you keep good records of your custody arrangement and that you and your ex are crystal clear about who claims your son each year. Having it documented in your divorce decree is ideal. Good luck with the new job!

Hey Sophia! I totally get the panic - I was in your exact shoes two years ago making around $38k with delivery apps. The good news is it's not as scary as it seems once you understand the basics. Here's the real deal: You won't owe 30-40% to the IRS. That person was probably mixing up gross vs net income. As a gig worker, you'll pay self-employment tax (about 15.3%) plus regular income tax on your profits AFTER deductions. With proper deductions (especially mileage), your effective tax rate will likely be closer to 15-20%. Your mileage tracking in a notebook is perfect! That's going to be your biggest deduction. Also track things like: - Phone bill (business portion) - Insulated delivery bags - Car washes if you clean your car for work - Any other delivery-related expenses For the quarterly payments - yes, you should have been making them, but don't panic. The penalty isn't huge for first-time situations, especially if you file and pay on time. Going forward, set aside about 25% of your earnings each week for taxes. One last tip: consider getting help this year since it's your first time. Whether that's a tax pro, software designed for gig workers, or even calling the IRS directly for guidance. It's worth the investment to get it right and understand the process for next year. You've got this! The tax stuff seems overwhelming at first but becomes routine once you learn the system.

Don't stress too much about this! I've been doing gig work for 3 years and that 30-40% figure someone told you is way off. Here's what you're actually looking at: You'll pay self-employment tax (15.3%) plus income tax on your net profit after deductions. With good record keeping and deductions, you're probably looking at an effective rate around 18-22% total. Your notebook mileage tracking is gold! That's likely your biggest deduction - around 67 cents per business mile for 2025. If you drove 25,000 miles for deliveries, that's about $16,750 in deductions right there. For quarterly payments - yeah, you should've been making them, but the penalty isn't catastrophic. It's usually a few hundred dollars max for someone at your income level. Just make sure to file and pay on time this April. Start setting aside 25% of your weekly earnings now for next year's taxes. Open a separate savings account just for this - trust me, it's a lifesaver when tax time rolls around. You can also deduct things like your phone bill (business portion), delivery bags, car washes for work, parking fees, tolls, etc. Just keep receipts and be reasonable about business vs personal use percentages. Consider using tax software designed for gig workers or finding a CPA who understands 1099 work. It's worth the cost to get it right the first time and learn the system for future years. You're not in trouble - just needs some organization and planning going forward!