Don't forget about reporting foreign financial accounts! If the total of all your foreign accounts exceeds $10,000 at any point during the year, you need to file an FBAR (FinCEN Form 114). The penalties for not filing this are INSANE - up to $12,921 per violation for non-willful violations and even higher for willful ones. Also, if you have foreign financial assets exceeding certain thresholds, you might need to file Form 8938 with your tax return. Different from the FBAR and easy to miss if you're doing taxes yourself.

As someone who made the move from the US to Spain three years ago, I can definitely relate to your stress about this! The tax situation is complex but totally manageable once you understand the basics. You'll definitely need to continue filing US tax returns annually - this is non-negotiable as a US citizen. However, Spain has a tax treaty with the US that helps prevent true double taxation. I use both the Foreign Earned Income Exclusion (currently $126,500 for 2025) and foreign tax credits for any Spanish taxes I pay. One thing I wish someone had told me earlier: start keeping meticulous records from day one of your move. Save everything - your lease agreement, utility bills, employment contracts, even grocery receipts if you want to be super safe. Spain requires you to become a tax resident if you're here more than 183 days in a year, so you'll be filing Spanish returns too. The biggest gotcha for me was the timing - Spanish tax year runs January to December, but you file the following spring. Make sure you understand both countries' deadlines so you don't accidentally miss something. Also, get familiar with the Modelo 100 (Spanish individual tax return) early - it's way more detailed than US forms. Don't let anyone scare you out of this move! Yes, it's paperwork-heavy, but thousands of Americans live and work abroad successfully. Just stay compliant with both countries and consider getting professional help for your first year or two until you get the hang of it.

Quick note of caution from someone who tried to be clever with state taxes: if you claim a Wyoming address but are clearly operating from Connecticut, you're asking for trouble. States are getting much more aggressive about finding businesses that should be paying them taxes. Some activities that can create nexus in a state even if your official address is elsewhere: - Physical presence of owners/employees working in the state - Storing inventory in the state - Having contractors in the state - Regularly meeting clients in the state - Generating significant revenue from customers in the state The "doing business in" test is getting broader, not narrower. Be careful and get professional advice.

As someone who's been through this exact situation with a remote e-commerce C-corp, I wanted to share some practical insights that might help. First, regarding your Delaware incorporation - you're absolutely right to consider QSBS eligibility, but make sure you understand the requirements. The stock must be issued when the company has less than $50M in gross assets, and you need to hold it for at least 5 years. Delaware is indeed the gold standard for this. For your state tax strategy, I'd strongly recommend Wyoming over Nevada or Texas. Wyoming has no corporate income tax, no personal income tax, and very low annual fees ($50 vs Delaware's minimum $175 franchise tax). The privacy protections are also excellent. Here's what worked for my setup: 1. Used Northwest Registered Agent for Wyoming ($125/year including mail forwarding) 2. Established a business address through a co-working space in Cheyenne that offers virtual office services ($89/month) 3. Set up a Wyoming LLC to hold the business address, then had my Delaware C-corp use that as its principal place of business The key insight: having legitimate business operations at your Wyoming address strengthens your position. Consider using a Wyoming-based fulfillment center if possible, or routing some business functions through that state. Regarding the Connecticut nexus concern - since you're both truly nomadic, document your travel patterns. If neither of you is spending more than a few weeks per year in CT, you're likely safe. But keep detailed records of where you're actually conducting business activities. One last tip: set up proper expense tracking from day one. Remote businesses often have deductions that traditional businesses miss, and good documentation will be crucial for both state nexus questions and potential QSBS qualification later.

Has anyone here actually had success getting the penalties reduced? I'm amending several years and looking at almost as much in penalties as the original tax! This is so frustrating, especially since I'm trying to do the right thing by amending.

I've been through this exact scenario with a 2018 amended return that resulted in owing about $4,200 additional. Here's what I learned from the experience: The good news is that since you filed your original 2019 return on time, you won't face the failure-to-file penalty on your amended return. That's a huge relief because that 5% monthly penalty can add up fast. However, you will owe: - Failure-to-pay penalty: 0.5% per month on the unpaid tax from April 15, 2020 (or July 15, 2020 if you had the COVID extension) until paid - Interest: This compounds daily and the rates have fluctuated quite a bit since 2020 For context, my penalties and interest on that $4,200 ended up being about $1,800 total by the time I paid in late 2022. The interest was actually the bigger component since it had been accumulating for several years. One tip: when you file Form 1040X, make your best estimate of penalties and interest and pay it with the return. Even if you're slightly off, it shows good faith and stops the clock on further accumulation. The IRS will adjust and either refund any overpayment or bill you for any shortage. Also consider requesting First Time Penalty Abatement if you qualify - it can eliminate the failure-to-pay penalty portion, though not the interest.

This exact issue cost us thousands last year. Check if ProSystem has the "Special Allocations" menu enabled for your partnership return. Sometimes section 59(e) fields are hidden unless you activate that module since they're considered special allocations. Also, make sure that in your C-corp return you've properly identified that you have partnership interests. Some tax software has quirks where partnership-related deductions won't show up unless you've properly set up the ownership structure.

I've dealt with this exact ProSystem FX issue before. The problem is likely that you need to enable the "Research and Experimental Expenditures" module in the partnership setup before Box 13J becomes available for data entry. Go to the partnership interview and look for questions about whether the partnership has research expenses, exploration costs, or other section 59(e) qualifying expenditures. If you answer "yes" to these screening questions, it should unlock the Box 13J field on the K-1. Once the partnership properly reports these expenditures on your C-corp's K-1, you'll make the actual 59(e) election on Form 4562 in your corporate return. The election lets you choose between immediate deduction or 10-year amortization of the qualifying expenses. Also worth noting - if your partnership has multiple types of section 59(e) expenditures (like both R&D and mineral exploration), make sure they're being separated properly on the K-1 since the election periods can differ.

I just went through this exact situation last tax season! My employer has a similar wellness program where we get cash bonuses for activity goals. After doing a lot of research and talking to my tax preparer, here's what I learned: The wellness rewards are definitely taxable income (which you already know), but unfortunately the Fitbit purchase isn't deductible as an employee expense anymore due to the Tax Cuts and Jobs Act changes. However, I'd strongly recommend checking with your HR department about reimbursement options. Many companies have wellness stipends or equipment allowances that they don't advertise well. My company ended up having a $200 annual wellness reimbursement that I never knew about - it was buried in our benefits documentation. Also, if you have an HSA, you might be able to use those funds if your doctor writes a Letter of Medical Necessity stating the device is needed for a specific health condition (like monitoring heart rate for a cardiac condition). This is a long shot for general wellness use, but worth exploring if you have any documented health issues. The bottom line is that trying to deduct it on your taxes probably won't work, but there are other avenues through your employer or HSA that might help offset the cost.

I'm dealing with almost the exact same situation! My company requires us to use fitness trackers for their wellness program, and I had to buy an Apple Watch specifically for it since my old basic fitness tracker wasn't compatible with their app. One thing I discovered that might help - check if your company participates in any "lifestyle spending accounts" or "wellness accounts" through your benefits provider. These are separate from HSAs/FSAs and are specifically designed for wellness-related purchases. My company offers a $300 annual allowance through Lifestyle Spending Account that covers fitness trackers, gym memberships, and other wellness expenses. Also, even though the fitness tracker itself isn't tax deductible, make sure you're keeping detailed records of all your wellness program participation. Some companies offer additional tax-advantaged benefits for employees who consistently meet wellness goals - like premium discounts on health insurance or contributions to HSAs that you might not be aware of. The tax situation is frustrating, but there are definitely workarounds if you dig into all your available benefits!