Anyone else have this weird situation where the addition to basis from WHFIT is actually HIGHER than the dividends you received? My Schwab S&P fund paid like $340 in dividends but then had a $412 addition to basis. Seems odd.

I had this exact same thing happen with my Vanguard index fund this year! The "Addition to basis from WHFIT reporting" caught me completely off guard too. After doing some research, I found out that WHFIT (Widely Held Fixed Investment Trust) is just a tax classification that many mutual funds and ETFs fall under. What's happening is that your fund had certain expenses or undistributed income that gets added to your cost basis instead of being paid out as a taxable distribution. This is actually beneficial because it increases your basis without creating a current tax liability. When you eventually sell your shares, you'll calculate your capital gain using this higher adjusted basis, which means less taxable gain. You definitely don't need to amend previous returns - this adjustment only affects your basis going forward. Just make sure to keep good records of these basis adjustments for when you file in future years. Most tax software like TurboTax should handle this correctly when you input the information from your 1099-COMPOSITE form.

Has anyone switched from standard mileage to actual expenses after the first year? I'm wondering if it's worth keeping track of everything just in case actual expenses end up being higher in future years.

Just to add some clarity on the depreciation calculation if you do switch from mileage to actual expenses - it's actually not too complicated once you understand the concept. When you use standard mileage, the IRS considers that you've already "taken" depreciation at a rate of 27 cents per mile for 2024 (this is built into the 67 cents total rate). So if you drove 10,000 business miles in your first year using standard mileage, you've already "used up" $2,700 of depreciation ($0.27 x 10,000 miles). If you switch to actual expenses in year 2, you'd subtract that $2,700 from your vehicle's basis before calculating remaining depreciation. For your $26,500 Forester with 60% business use, your depreciable basis would be $15,900 (60% of $26,500). If you used standard mileage in 2024 and drove, say, 8,000 business miles, you'd subtract $2,160 in "deemed depreciation" from that $15,900 basis. Then you'd depreciate the remaining amount over the rest of the 5-year recovery period using straight-line method. The math gets a bit involved, but it's definitely doable with a good tax software or spreadsheet once you understand the concept.

Something nobody's mentioned yet - the Augusta Rule has limits beyond just the 14 days. If you're using a home office deduction for the same space, things get complicated. You can't double-dip on deductions for the same space. Also, the business purpose has to be legitimate. Simply calling it a "strategy meeting" won't cut it if you get audited. There needs to be a clear agenda, outcomes, and a business necessity for using the home rather than another location.

I've been following this discussion with great interest since I'm in a similar situation with my consulting LLC. One thing I want to add that hasn't been fully addressed - timing matters a lot for the Augusta Rule. You need to be careful about when you "rent" your home to your business. The rental needs to happen in the same tax year that your business deducts the expense. So if you hold a business meeting in December 2024 but don't actually pay the rental fee until January 2025, you could run into timing issues between the deduction and the income exclusion. Also, for anyone considering this strategy, remember that the 14-day limit is per tax year, not per property. If you own multiple properties and try to use the Augusta Rule on each one, you're still capped at 14 days total across all properties for the tax-free treatment. The documentation requirements everyone mentioned are absolutely critical. I learned this the hard way when my accountant pointed out that simply having meeting notes isn't enough - you need to show that using your home was necessary for the business purpose rather than just convenient.

What nobody's mentioned is how being a "US person" makes banking overseas a nightmare. I'm a dual US/German citizen and banks here hate dealing with US reporting requirements. Some even closed my accounts when FATCA came in! If you stop filing US taxes you might fly under the radar for years, but eventually something will trigger attention - maybe trying to move that investment, getting a large inheritance, or buying property. Then you'll face back filing for all those missing years plus penalties. The "head in sand" approach feels good short term but can be expensive long term. I tried it for 3 years and ended up paying way more to fix it than if I'd just kept filing.

I'm an American living in New Zealand and can relate to your frustration! The banking situation here isn't as bad as some European countries, but it's definitely getting more complicated. Most major banks (ANZ, ASB, Westpac) will still open accounts for US citizens, but they ask a lot more questions now and some investment products are off-limits. One thing that might help with your immediate cost problem - have you looked into the IRS Volunteer Income Tax Assistance (VITA) program? They sometimes have virtual sessions specifically for expats, and it's completely free if you qualify (which you likely would based on your income level). The quality can be hit-or-miss, but it might be worth trying before paying hundreds again. Also, since you mentioned you're in Australia - the US-Australia tax treaty has some provisions that could help reduce your filing burden. Australia's superannuation system has specific treaty protections that most tax preparers don't even know about. The nuclear option of renouncing citizenship is expensive upfront ($2,350 now), but if you're truly never planning to live in the US and the annual filing costs keep adding up, it might be worth saving for over a few years. Just make sure you understand the exit tax implications first, especially with that investment account.

Hey Malik, I see you already figured out it was an old parking ticket from 2020 through the Treasury Offset Program - that's exactly what I was going to suggest! This is super common and catches people off guard all the time. The good news is at least you know where your money went now, even if it's frustrating. For future reference, you can actually request an injured spouse allocation if you're married filing jointly and the debt belonged to your spouse before marriage. Also, some offsets can be appealed if you believe they're in error. The letter you should receive in the mail will have details about your rights and next steps if you want to dispute it. Glad you got it sorted out though - mystery solved! 🎉

This is such a frustrating situation but unfortunately pretty common! Based on what you've shared, since your transcript shows the full amount but you only received a partial deposit, it's most likely either a Treasury Offset (which you already confirmed with the parking ticket) or your bank holding part of the funds. Since you found out about the parking ticket offset, that explains the difference. For anyone else reading this who might have a similar issue, here are the main things to check: 1. Call Treasury Offset Program at 800-304-3107 to check for any offsets 2. Contact your bank to see if they're holding part of the deposit 3. Check if your tax preparer deducted fees from your refund 4. Look for any adjustments the IRS made to your return (though these usually show on your transcript) The silver lining is that at least you know exactly what happened now, even though losing refund money to an old debt is never fun. Make sure you get that offset notice in the mail and verify all the details are correct!