Be careful about state residency too!! The Substantial Presence Test is for federal taxes, but states have their own rules for residency. Some states are super aggressive about claiming you as a resident if you spend a certain number of days there. For example, NY considers you a resident if you maintain a permanent place of abode and spend 183 days or more in the state. California is even worse - they'll try to claim you're a resident based on much less. State taxes can be a huge additional burden depending on where you live.

This is such a common situation that catches people off guard! I went through the exact same transition two years ago and it was overwhelming at first. One thing I'd add to the great advice already given - make sure you understand the timing of when you need to start making estimated quarterly tax payments. Once you're a tax resident, you're subject to the same pay-as-you-go requirements as US citizens. If your employer is still withholding at nonresident rates, you might end up owing a significant amount at year-end and potentially face underpayment penalties. I'd recommend calculating your expected tax liability early in the year and either asking your employer to increase withholding or starting to make quarterly estimated payments. The IRS doesn't care that this is your first year as a resident - they expect you to figure it out! Also, start gathering all your foreign account statements now. The FBAR filing deadline is different from your tax return deadline (October 15th with automatic extension vs. April 15th), and the penalties for not filing or filing incorrectly can be severe. Better to be over-prepared than scrambling at deadline time.

Honestly just buy the gaming PC and save the grand. I've been audited twice for my small business and they've never once questioned the name of any equipment - only whether I could prove it was used for business. I have 3 "gaming" PCs that I use for video editing and 3D rendering. What matters is your records showing business use.

I completely agree with everyone saying the name doesn't matter - it's all about actual business use. I run a small consulting firm and bought what's technically a "gaming laptop" because it had the processing power I needed for data analysis at half the cost of business-branded alternatives. When I set it up in my accounting software, I just labeled it "Business Computer - Data Processing" and kept a simple log of work activities for the first couple months as documentation. Never had any issues, and the cost savings helped my bottom line significantly. The IRS is looking for legitimate business expenses, not policing marketing terminology. If you can demonstrate clear business purpose and maintain proper records, you're golden. Save the $1,000 and put it toward other business needs!

Your tax preparer might have checked the wrong box for marketplace coverage. Happened to me last year ngl

Have you tried checking your credit reports? Sometimes identity theft can cause erroneous 1095-A forms to be filed under your SSN. Also, for the dependent SSN issue - make sure you're using the exact format the IRS has on file. Even extra spaces or hyphens can cause rejections. You might want to call the Taxpayer Advocate Service at 877-777-4778 if the regular IRS lines aren't helpful.

Has anyone used the IRS's "Offer in Compromise" program? I've heard you can settle for way less than you owe. With $70k in tax debt maybe that's better than a payment plan?

I went through something very similar - owed about $85k in back taxes after a stock windfall, then got laid off and couldn't deal with it for years. The stress was unbearable. Here's what I learned: Don't pay those tax resolution companies. I almost did the same thing and would have wasted $8k+ for services I could handle myself. First, get those returns filed immediately with your CPA. This stops the failure-to-file penalties which are brutal (5% per month vs 0.5% for failure-to-pay). Second, that $20k payment you made is definitely in the IRS system. When you file your 2020 return, make sure your CPA applies it to reduce your balance. You can verify this later with an account transcript. Third, with your new income level, you'll likely qualify for a standard installment agreement. The IRS will want financial disclosure (Form 433-F) for amounts over $50k, but they're usually reasonable about payment terms if you're compliant and honest about your situation. I ended up getting penalty abatement for about 60% of my penalties under the "reasonable cause" provision - the job loss and financial hardship were legitimate reasons. Saved me over $15k. The key is getting current with filing first, then dealing with collections. The IRS is actually pretty workable once you're compliant and communicating with them directly. Don't let the debt sit unfiled any longer - it only gets worse. You've got this! The fact that you're employed again and addressing it now puts you in a much better position than you think.

the whole system is broken fr fr. took me 6 tries last year to get it right smh

make sure ur using the ORIGINAL 1095-A they sent. sometimes they send corrected ones and ppl dont notice