Something nobody has mentioned yet - if you have significant capital gains AND you're married to a foreign national, you need to be extremely careful about FATCA and FBAR reporting requirements. I made the mistake of not filing these correctly and got hit with a $10,000 penalty. Make sure you file FinCEN Form 114 (FBAR) if you have foreign accounts with a combined value over $10,000 at any point during the year. And depending on your total assets, you might need Form 8938 too. The penalties for not filing these are ridiculous compared to regular tax filing issues.

Been living in Thailand for 8 years, married to a Thai citizen for 5. I went through exactly what you're describing. What I learned: 1) Your marriage is valid for US tax purposes as long as it was legal where performed 2) Filing jointly usually only makes sense if your spouse has minimal income 3) Capital gains are taxed the same regardless of filing status - the rates don't change 4) What DOES change with filing status is your standard deduction and tax brackets For $145k in cap gains, if that's your only US taxable income, filing jointly doubles your standard deduction from $12,950 to $25,900 (for 2022, will be higher for 2025), which helps a bit. But the real question is what other income you have and what your spouse earns.

You can request your own transcript directly from the IRS even if your ex has the original documents. You have a few options: 1) Order online at irs.gov/individuals/get-transcript (you'll need to verify your identity), 2) Call the transcript request line at 800-908-9946, or 3) Mail Form 4506-T to request it by mail. Since you're post-divorce, make sure to use your current address and contact information. The transcript will show all the trace numbers for payments and refunds from that tax year. I'd recommend getting transcripts for the past 3-4 years to have complete records for your new financial situation.

The trace number is essentially your receipt for any electronic transaction with the IRS - whether it's a refund they sent you or a payment you made. Given that you just finalized your divorce, this number could be particularly important if there are any questions about who received refunds or made payments during your marriage. I'd definitely keep a record of it along with your other financial documents. If you're having trouble locating it on your transcript, it's usually found in the "Transaction Code" section next to entries like 846 (refund issued) or 770 (payment received). Since you mentioned being extra careful with finances lately, I'd recommend downloading and saving copies of all your tax transcripts from the past few years - having that paper trail could be invaluable for your fresh financial start.

Has anyone dealt with currency conversion issues in this kind of situation? When my cousin sold property in Brazil, the exchange rate fluctuated significantly between when the sale happened and when the money actually hit his US account. The IRS wanted him to use the exchange rate from the date of sale, not the rate from when he received the money, which made a big difference in the reporting amounts.

This is exactly the kind of complex international tax situation where getting proper guidance upfront can save you from major headaches later. A few additional considerations for your situation: Since you're married but filing as single, you'll definitely want to clarify your correct filing status with a tax professional. The IRS is very particular about this - being legally married typically means you must file as either "Married Filing Jointly" or "Married Filing Separately," even if your spouse has never been to the US. Also, beyond Form 3520 for the foreign gift reporting, consider whether you'll need to file Form 8938 (FATCA) if the total value of your foreign financial assets exceeds certain thresholds. The $675k transfer could push you over these limits depending on your other holdings. One thing that might help is documenting everything thoroughly - the original purchase price of the property, sale documents, currency conversion rates, and the exact nature of your relationship to the funds. This documentation will be crucial if the IRS ever has questions about the source and nature of the money. Given the complexity and potential penalties for getting international tax reporting wrong, investing in professional advice for this specific situation is probably worth it, even if it costs a few hundred dollars upfront.

Just to add another perspective - I had a similar situation but with a bigger loss ($8,000) in 2024 when my income was only about $25,000. My accountant explained that the way it works is: 1. Capital losses first offset capital gains (I had none) 2. Then up to $3,000 can offset ordinary income (which happened on my Line 9) 3. But since that $3,000 reduction didn't actually reduce my tax (I was still under the standard deduction), I get to carry over the full $8,000 to 2025 So in your case, you definitely have a $520 carryover to use this year. The software is right!

Something important that nobody's mentioned yet - make sure you're filling out Form 8949 and Schedule D correctly this year! You'll need to report your capital loss carryover on Schedule D line 6 if it's a short-term loss or line 14 if it's a long-term loss. You don't need to list it again on Form 8949. I messed this up last year and included my carryover loss on both forms, which confused the IRS and resulted in a letter asking for clarification. Don't make my mistake!

Quick tip: keep track of time spent developing too! Hours worked can help justify your business status to the IRS if they ever question whether your game dev is a hobby or a business. Hobbies have way fewer tax advantages than businesses.

As someone who went through this exact situation two years ago, I want to emphasize something really important that might help reduce your stress: you're actually in a BETTER position by waiting until you turn 18 to cash out! Since you haven't converted your Robux to USD yet, you have more control over the timing and can plan better for taxes. I made the mistake of cashing out sporadically throughout the year without setting money aside, and it was a nightmare come tax season. Here's what I wish I'd known: Consider cashing out in smaller chunks rather than all at once, especially if $38k would push you into a higher tax bracket. You can also time it strategically - like cashing out some in December and some in January to split the income across two tax years. Also, start tracking your business expenses NOW before you cash out. Things like your computer setup, internet costs (business portion), any software subscriptions, even courses or books about game development - these can all be legitimate deductions that will reduce your taxable income significantly. The self-employment tax is the killer (15.3% on top of regular income tax), but proper expense tracking can really help offset that burden. You've got this!