Oh man I think I've been doing this wrong for years! I always thought ordinary and qualified were completely separate calculations. So just to double check - line 1a on my 1099-DIV (total ordinary dividends) is the number that goes into my total income calculation, right? And then the qualified portion on line 1b gets the special tax rate?

This is such an important distinction that I wish more investment platforms explained better! I made this exact mistake a few years ago and ended up underpaying taxes because I didn't realize my ordinary dividends from REITs were pushing my qualified dividends into a higher tax bracket. One thing that helped me understand this better was looking at it this way: imagine your total taxable income is like filling up a bucket. Every dollar of income (wages, ordinary dividends, qualified dividends, interest, etc.) goes into that bucket. Once the bucket reaches certain levels, that determines your tax brackets. Then the IRS looks at each type of income in your bucket and applies the appropriate tax rate - regular rates for ordinary income, and preferential rates for qualified dividends based on which bracket your total bucket falls into. So yes, those ordinary dividends absolutely count toward determining what tax rate applies to your qualified dividends. It's all interconnected, which is why tax planning can get complex but also why it's so important to understand these interactions.

The substantial presence test definitely caught me off guard too when I first moved to the US! One important detail I learned the hard way - make sure you keep detailed records of your actual days in the US. The test counts any part of a day as a full day, so even if you just landed late at night or left early in the morning, those count toward your total. Since you mentioned you're from Canada, you might want to look into whether you qualify for the "closer connection exception" using Form 8840. If you maintained stronger ties to Canada (like a permanent home, family, bank accounts as your primary financial center, etc.) and were present in the US for fewer than 183 days this calendar year, you might be able to file as a non-resident even though you meet the substantial presence test. Also, don't panic about the foreign account reporting - the thresholds for FBAR and Form 8938 are different, and many people don't realize you might need both depending on your account balances. The FBAR threshold is $10,000 total across all foreign accounts at any point during the year, while Form 8938 has higher thresholds that depend on your filing status and where you live. The good news is that since you've been paying taxes through payroll, you're already on the right track and likely won't owe huge amounts when you file. The withholdings should cover most of your liability.

I'm dealing with a very similar situation right now! Just passed the substantial presence test myself after being here on an H1-B for about 7 months. The whole thing is definitely confusing at first, but it gets clearer once you understand the basics. Since you're on a work visa like me, your days definitely count toward the test (unlike students on F visas). The key thing I learned is that once you pass, you're treated as a US tax resident for the ENTIRE tax year, not just from when you arrived. This means you'll report your worldwide income on Form 1040, including any Canadian income you earned before coming to the US. For your Canadian accounts, definitely look into both FBAR and Form 8938 requirements. The FBAR deadline is October 15th (different from your regular tax return), and the penalties for missing it can be really steep. But the good news is there's an automatic extension available if you need it. One thing that helped me was creating a spreadsheet tracking all my days in the US, including arrival and departure dates. Even partial days count as full days for the test, so make sure you're counting everything correctly. The US-Canada tax treaty should help prevent you from being double-taxed on the same income, but you'll want to understand how foreign tax credits work. Don't stress too much about the payroll taxes you've already paid - those will be credited against your final tax liability when you file.

I just went through this exact process last month with our C-Corp name change. Here's what worked for us: We filed Form 8822-B as mentioned, but what really helped was calling the IRS Business & Specialty Tax Line at 800-829-4933 beforehand to confirm our approach. The agent told us that since we were close to our filing deadline, we could proceed with filing our return under the old name and check Box A for the name change election - this actually processes faster than waiting for the separate Form 8822-B. However, if you have time before your deadline, the Form 8822-B route is cleaner. Make sure to: 1. Include a copy of your state-filed articles of amendment 2. Write a brief cover letter explaining the name change effective date 3. Send it certified mail so you have proof of delivery One thing I learned - if you have employees, you'll also need to update your name with the Social Security Administration for payroll reporting. This is separate from the IRS update and requires Form W-2c corrections if you've already filed W-2s under the old name. The whole process took about 3 weeks total, which was faster than the 4-6 weeks they quoted. Good luck with your name change!

One thing I haven't seen mentioned yet is the importance of timing your name change with your quarterly estimated tax payments if you make them. We learned this the hard way when our Q3 estimated payment was rejected because it was submitted under our new name but the IRS system still had us under the old name. If you're making estimated payments, either complete the name change process before your next payment is due, or continue making payments under your old name until the IRS processes the change. You can always call the Business Tax Line to confirm which name is currently on file in their system before submitting payments. Also, don't forget to update your name with your bank if you have a dedicated business account for tax payments. We had a payment bounce because the name on the electronic transfer didn't match what the IRS had on file. Small detail but can cause headaches if overlooked.

This whole thread has been incredibly reassuring! I'm in a somewhat similar boat - going through a contentious business partnership dissolution and my former partner has made some vague threats about "making sure the government knows about my finances." What I'm taking away from all the expert input here is that the IRS is much smarter about these situations than I initially thought. The fact that they receive tens of thousands of vindictive reports annually and have developed systems to filter them out is really encouraging. It sounds like they've basically seen every possible variation of spite reporting and know how to handle it. I'm particularly grateful for the insight from the former IRS employee about what actually triggers audits - statistical anomalies and information mismatches, not angry phone calls from disgruntled business partners. That really puts things in perspective. One practical question for anyone who's been through this: should I proactively organize my tax documentation better just in case, or is that overkill? I keep decent records but they're not perfectly organized. Part of me thinks I should get everything in order just for peace of mind, but I also don't want to stress myself out over what sounds like empty threats. Either way, I'm definitely saving any threatening communications as others have suggested. Better to be prepared even if nothing comes of it.

This thread has been incredibly educational - thank you to everyone who shared their expertise and experiences! As someone who's been on the receiving end of similar threats from a disgruntled former tenant, I can confirm that the peace of mind from understanding how the system actually works is invaluable. What really stands out to me is how consistent all the expert advice has been: the IRS has robust systems to filter out vindictive reports, they require credible evidence (not just angry accusations), and they've seen every variation of spite reporting imaginable. The insight from the former IRS employee about receiving tens of thousands of these reports annually really drives home how common this harassment tactic is - and how prepared the IRS is to handle it. For anyone else dealing with these kinds of threats, the key takeaways seem to be: 1. Keep excellent tax records (good practice anyway) 2. Document any threatening communications 3. Don't lose sleep over empty threats from people with personal grudges 4. Focus on accurate tax filing rather than worrying about vindictive reports It's also reassuring to know that filing false reports can have serious legal consequences for the person making them, especially when there's clear evidence of malicious intent. The fact that several people mentioned potential defamation lawsuits really emphasizes that the harassment can backfire on the person making threats. Thanks again to everyone who took the time to share their knowledge and experiences - this kind of community support is exactly what makes dealing with these stressful situations so much easier!

I'm kinda confused by some of the comments here. I've been using Section 179 for years in my consulting business to offset my regular W-2 income. My accountant has never mentioned this limitation. Is this something new for 2025??

I think there's some confusion in this thread that needs clearing up. Emma, your TurboTax software is absolutely correct - Section 179 deductions cannot be used to create or increase a business loss that offsets other income like your W-2 wages. However, I want to clarify something important: if your photography business shows a net loss AFTER regular business expenses (not including Section 179), that loss CAN potentially offset your W-2 income. The key is that Section 179 specifically has this limitation, but other business deductions don't. For your situation with $4,200 in business income and $8,500 in equipment, here's what I'd suggest: Use Section 179 for up to $4,200 worth of equipment, then either use bonus depreciation (as Diego mentioned) or regular depreciation for the remaining $4,300. This way you get the immediate write-off for part of it while staying compliant with the rules. Also, don't forget that any unused Section 179 deduction carries forward to future years when your business hopefully generates more income. It's not lost forever!