I'm surprised nobody mentioned this yet, but your employer's tip reporting system might actually be illegal. If they're reporting 100% of your tips as your income on your W-2 but requiring you to give 20% away, that's a problem. The IRS actually has specific rules about tip pools. Your employer should be tracking who gets what from the pool and reporting income correctly for each employee. Might be worth asking your manager if they're properly allocating tip income for tax purposes.

As someone who's dealt with similar tip pool confusion, I want to emphasize what others have said - you absolutely should NOT be paying taxes on money you never actually received. The 20% that goes to hosts is their income, not yours. Here's what I learned the hard way: keep meticulous records of every shift. I use a simple notebook where I write down my total tips, the amount I tip out, and who receives it. Date and initial each entry. This saved me during a payroll audit last year. Also, don't rely on your restaurant's reporting system. Many places incorrectly report 100% of credit card tips under your name because their POS systems aren't set up to track tip distributions properly. You have the right to report only what you actually earned on your tax return, regardless of what's on your W-2. One last tip - if your state has different minimum wage rules for tipped employees, make sure you understand those too. Some states don't allow the lower tipped minimum wage if you're required to participate in tip pools.

11 I'm confused about something slightly different but related. If my LLC is taxed as an S-Corp and I pay myself a salary, should I just reimburse myself for the business portion instead of having the business pay the full bill?

Great question! I've dealt with this exact situation in my consulting business. You have two main approaches: **Option 1 (Most Common):** Have your business pay the full phone bill, then split it in your bookkeeping - 50% goes to "Telephone Expense" (deductible) and 50% goes to "Owner's Draw/Distribution" (non-deductible personal expense). **Option 2:** Pay the bill personally and have your business reimburse you only for the 50% business portion. For documentation, you don't need to track every single call. A simple log for one representative month showing your business vs. personal usage pattern is usually sufficient. Or keep a written statement explaining how you determined the 50% (like "I use my phone roughly half the time for customer calls, scheduling, and business communications"). The key is being consistent with your method and having reasonable documentation to back up your percentage if the IRS ever asks. Make sure whatever approach you choose, you stick with it throughout the year for consistency.

Just to add another perspective as a green card holder who went through this - don't forget about state tax implications too! Some states have their own foreign asset reporting requirements that are separate from federal forms. I bought a small apartment in Europe a few years ago and while I handled the federal Form 8938 correctly, I almost missed that my state (California) had additional disclosure requirements for foreign investments. Each state is different, so definitely check with your state's tax authority or a tax professional familiar with your specific state's rules. Also, keep really good records of the purchase price, any improvements you make, and the exchange rates on all transaction dates. If you ever sell the property, you'll need all this for calculating capital gains/losses on your US return. The IRS documentation requirements for foreign property transactions are pretty strict.

As someone who recently went through this exact situation as a green card holder, I can confirm that yes, you'll likely need to report the foreign property purchase even if it's just for personal use. The key thing to understand is that the US taxes based on your tax residency status (which includes green card holders), not just where the property is located. Here's what I learned from my experience: If the property value exceeds the Form 8938 thresholds ($50,000 for single filers living in the US), you'll need to report it. Even if it's below that threshold, it's smart to keep detailed documentation of the purchase price, transaction dates, and exchange rates used - you'll thank yourself later if you ever sell or if thresholds change. One practical tip: when you're ready to make the purchase, consider consulting with a tax professional who specializes in expat/green card holder situations before completing the transaction. They can help you structure things properly from the start and avoid any compliance headaches later. The reporting requirements can seem overwhelming at first, but once you understand what applies to your specific situation, it becomes much more manageable. Also, don't forget to factor in any foreign bank accounts you might need to open for the property - those could trigger separate FBAR reporting requirements if they exceed $10,000 at any point during the year.

One thing to keep in mind - even if your return doesn't show up in the system yet, you can still make a payment toward what you owe to stop additional penalties and interest from accruing. Go to IRS Direct Pay and choose "extension payment" as the reason. The payment will be applied to your account regardless of whether your return is fully processed yet. You can then set up the formal payment plan once everything is visible in the system.

The maintenance periods are super annoying! I filed right before one last year too. Just FYI, you might want to check the status of your return using the "Where's My Refund" tool even though you owe money. Sometimes it will show processing status even when your account doesn't show it yet.

I've been through a similar situation and want to add a few points that might help. Since you mentioned you were an independent contractor, make sure you're maximizing your Schedule C deductions for legitimate business expenses during that contractor period - not job hunting expenses, but actual business costs like professional memberships, software subscriptions, or equipment you used for your contractor work. Also, regarding your internet and cell phone bills - while you can't deduct the portion used for job hunting, if you used these for your independent contractor work, you can deduct the business-use percentage on Schedule C. Keep detailed records showing what percentage was used for business versus personal use. One more thing - if you had a dedicated home office space that you used exclusively for your contractor work (not job hunting), you might qualify for the home office deduction. This can include a portion of utilities, rent/mortgage interest, and other home expenses. The key word is "exclusively" - it has to be used only for business purposes.

I'm dealing with a similar situation after being laid off from my marketing job last fall. One thing I discovered that might help - if you had any side hustle or freelance income during your job search period, you might be able to deduct some expenses that supported that work rather than your job hunt. For example, I did some freelance social media consulting while unemployed, which meant my LinkedIn Premium subscription and some networking event fees could be legitimately deducted as business expenses on Schedule C since they directly supported my consulting work, not my job search. Also, don't overlook the self-employment tax deduction - you can deduct half of any self-employment taxes you paid on your contractor income, which reduces your adjusted gross income. With your $5,400 in contractor income, this could provide some additional tax relief. The key is being very careful about the distinction between job-hunting expenses (not deductible) and legitimate business expenses for any independent contractor work you did (still deductible). Keep detailed records showing the business purpose for each expense.