Great breakdown from everyone! As someone who just went through this process last year, I want to emphasize a few practical points that really helped me: First, regarding your treasury investments - the IRS distinguishes between "portfolio interest" (which is exempt for NRAs) and other types of interest. Your Treasury Bills, Notes, and Bonds should all qualify for this exemption under IRC Section 871(h), so those interest payments and coupon payments totaling $890 should be tax-free for you. However, be aware that some financial institutions might still withhold 30% tax on these payments initially and issue you a 1042-S showing the withholding. If this happens, you can claim a refund when you file your 1040-NR. One thing I wish I'd known earlier: start organizing your documents NOW. Create separate folders for: - Employment income (W-2 from campus job) - Interest statements (1099-INT or 1042-S from banks) - Investment statements (1099-DIV, 1099-B for sales) - Any tax treaty claims Also, consider whether you need to file estimated quarterly taxes. With $9,200 in employment income, you're probably having enough withheld from your paychecks, but if your investment income grows significantly, you might need to make estimated payments to avoid underpayment penalties. The complexity is overwhelming at first, but once you understand the ECI vs non-ECI distinction, it becomes much more manageable!

This is such a comprehensive discussion! I wanted to add one more crucial point that hasn't been mentioned yet - the importance of understanding your home country's tax obligations as well. Many countries require their citizens to file tax returns on worldwide income, even when living abroad as students. You'll want to check if your home country has provisions for foreign tax credits or exemptions for students to avoid double taxation on your US income. Also, regarding your specific income amounts, with $9,200 from your campus job, you'll likely be entitled to claim the standard deduction on your 1040-NR (around $13,850 for 2023), which means your employment income might not be taxable at all! This is a huge advantage that many international students don't realize. For your investment portfolio, consider the timing of future transactions. Since capital gains from selling treasury securities are generally exempt for NRAs, you have more flexibility in your investment strategy compared to US tax residents who have to worry about short-term vs. long-term capital gains rates. One last practical tip: if you're using tax software, make sure it specifically supports NRA returns. Many popular programs like TurboTax don't handle 1040-NR filings, which can lead to incorrect filing as a resident alien and major complications with your visa status. Always double-check that you're filing the correct forms for your immigration status!

I'm a tax preparer and work with several rideshare drivers. Here's my general advice: 1. Standard mileage rate vs. actual expenses is a year-by-year choice, but with some restrictions. If you used standard mileage in the first year, you can switch between methods in later years. But if you used actual expenses the first year, you're locked into that method for that vehicle. 2. For major repairs like a transmission, if using actual expenses, you generally deduct the business-use percentage in the year incurred. 3. Keep detailed records! The IRS loves to audit Schedule C deductions, especially for rideshare drivers.

Everyone's forgetting the Section 179 deduction! If your repair technically counts as an improvement (extends useful life significantly), you might be able to use Section 179 to deduct the entire business portion in one year instead of depreciating it.

I was wondering this exact thing last year and called my accountant in a panic thinking I'd missed filing these 941 forms! She laughed and told me not to worry - sole props without employees just need Schedule C, Schedule SE for self-employment tax, and possibly estimated quarterly payments (Form 1040-ES) if you expect to owe more than $1000 in taxes. She said a super common mistake is confusing independent contractors (1099 workers) with employees (W-2 workers). With contractors, you don't withhold taxes or pay employment taxes, so no 941 needed!

Great question! As everyone has mentioned, you definitely don't need Form 941 as a sole proprietor with no employees. I went through the same confusion when I started my marketing consultancy. One thing I'd add that hasn't been mentioned yet - make sure you're keeping good records of those 1099s you're issuing to contractors. You'll need to file Form 1096 (Annual Summary and Transmittal) along with all your 1099-NEC forms by January 31st each year if you paid any contractor $600 or more. Also, since you mentioned being worried about missing important forms, consider getting familiar with Publication 334 (Tax Guide for Small Business). It's a comprehensive guide from the IRS that covers all the tax obligations for different business structures. Really helped me understand what applies to my situation vs. what doesn't. You're doing everything right with Schedule C and issuing 1099s to contractors. The IRS actually has a pretty clear distinction between employer obligations (Form 941, W-2s, payroll taxes) and business owner obligations (Schedule C, 1099s, self-employment tax). You're firmly in the latter category!

Has anyone here had experience with how stock options and RSUs impact the safe harbor calculations? My base salary is about the same as last year, but I'm exercising some options in December that will add about $45k to my income. Will that mess up my safe harbor protection?

Great question about safe harbor rules! You're absolutely on the right track. Since you paid $65,000 last year and have already withheld over $71,500 this year, you've met the safe harbor requirement (assuming your AGI was over $150k, making it the 110% rule). One thing to keep in mind though - while you're protected from underpayment penalties, you'll still want to estimate what you might owe and consider whether you want to adjust your withholding for the remaining months. If you end up owing a large amount in April, it can still be a cash flow challenge even without penalties. Also, with a significant raise, double-check if any of your deductions or credits might phase out at your new income level. Sometimes people forget about things like student loan interest deduction limits or retirement contribution phase-outs that can increase your effective tax rate beyond just the bracket change.

Had this exact same situation happen to me last year! The IRS actually has a pretty streamlined process for this. You can call their automated refund hotline at 1-800-829-1954 to check the status - it'll tell you if the check was returned and when they plan to reissue it. Also, definitely file that Form 8822 ASAP if you haven't already. The whole process took about 7 weeks total for me from when the original check was mailed to getting the replacement. Hang in there!

Same thing happened to my sister - took about 6 weeks total. One thing that helped speed it up was calling that IRS hotline (1-800-829-1954) every couple weeks to check status. They can actually tell you when the check was returned to them and when they plan to mail the new one. Also make sure you file Form 8822 online if possible, it's faster than mailing it in!