Similar issue happened to me. I just claimed an adjustment on my tax return instead of going through the hassle of getting a corrected W-2. If you use tax software, there should be a section for "unreported income adjustments" or something similar. I entered a negative amount for the cell reimbursement to offset what was incorrectly included in Box 1. It's technically not the most proper way to handle it, but my accountant said it's fine as long as I keep documentation showing why the adjustment was valid. Been doing it this way for years with no issues.

This is a really common issue! I went through something similar last year. The key thing to understand is that cell phone reimbursements can be non-taxable, but only if your employer has set up what's called an "accountable plan" and the reimbursement is primarily for business purposes. From what you're describing, it sounds like your employer may have incorrectly included the reimbursement as taxable income. Here's what I'd recommend: 1) First, check with your HR/payroll department to understand their policy. Ask specifically if they consider their cell phone reimbursement program an "accountable plan" under IRS guidelines. 2) If they've made an error, push for a corrected W-2 (Form W-2c). This is the cleanest way to handle it. 3) If they refuse to issue a correction and you're confident they're wrong, you can handle it on your tax return, but you'll need solid documentation showing the business purpose and that you properly accounted for the reimbursement. The $900 difference is definitely worth pursuing - that could save you $200+ depending on your tax bracket. Don't let slow HR discourage you from getting this fixed properly!

2 has anyone looked into the "trader tax status" election? from what i understand, you can make a section 475(f) election that lets you treat your trades as ordinary income/loss instead of capital gains/losses. might be better than the LLC route depending on your situation? especially if you ever have losses, since you avoid the $3k capital loss limitation. i'm not an expert tho so would love to hear if others have done this.

One thing I haven't seen mentioned yet is the potential impact on your wife's Social Security benefits. If she's been out of the workforce for a while, having documented earnings through the LLC could help build her Social Security credits and increase her future benefits. Also, regarding the retirement account question - if you do set up an LLC and she becomes an employee, consider a Solo 401(k) instead of a traditional 401(k) plan. Solo 401(k)s have much lower administrative costs and allow for higher contribution limits if she's also considered an owner of the business. Just make sure to consult with a tax professional who has experience with trading businesses before making any decisions. The IRS has specific guidelines for what constitutes a legitimate trading business versus investment activity, and getting this wrong could result in penalties and back taxes.

Make sure you don't exceed the HSA contribution limits! For 2025, they're $4,150 for individual coverage and $8,300 for family coverage. If you're 55 or older, you can add another $1,000 as a catch-up contribution. Going over these limits means you'll have to withdraw the excess or pay a 6% excise tax on the extra amount. Not fun!

Great detective work figuring out that your HSA contributions are being handled as post-tax deductions! That explains exactly why they weren't reducing your taxable wages on your pay stub like your 403(b) contributions did. You're absolutely correct that you'll need to claim the HSA deduction when you file your taxes using Form 8889. This will reduce your adjusted gross income by the full $2,950, giving you the same tax benefit as if it had been deducted pre-tax from your paychecks. Many people don't realize that HSAs can work either way - through pre-tax payroll deductions OR as a tax deduction when you file. The end result is identical in terms of tax savings. You might want to ask your HR department if you can switch to pre-tax HSA deductions for next year to make things simpler and get the tax benefit spread throughout the year rather than all at once when you file. And yes, you'll still get all three tax advantages of the HSA - no taxes going in (via the deduction), no taxes on growth, and no taxes coming out for qualified medical expenses!

Does anyone know if we need to file Form 8833 every year? I filed it last year when I first came on my J-1, but I'm not sure if I need to do it again this year.

I went through this exact same struggle last year with my J-1 visa from Canada! The language barrier definitely makes these forms even more confusing than they already are. One thing that really helped me was finding the actual treaty text between the US and Spain on the IRS website. Search for "United States Spain Income Tax Treaty" and look for the PDF. Article 20 is usually the one that covers students and trainees - it should give you the exact language you can reference in your Form 8833. Also, don't feel bad about calling the IRS multiple times if you need to. I called three different times and got three different answers, but the third agent was really knowledgeable about international treaties and walked me through everything step by step. For what it's worth, I found that keeping my answers in the boxes simple and straightforward worked better than trying to be too detailed. The IRS just wants to understand your situation clearly. ¡Buena suerte! You've got this - it's definitely intimidating but once you get through it the first time, next year will be much easier.

This is slightly off-topic, but has anyone been audited for ERTC claims? My S-Corp got the refund for 2020-2021 (about $62k), and I'm working on the amendments now, but I'm hearing horror stories about aggressive audits specifically targeting ERTC. I'm reducing the wage expense by the full amount as others have said, but I'm worried about whether our original claim will be scrutinized. We had a 37% revenue drop in the qualifying quarters, so I think we're solid, but these rumors about audits have me nervous.

I went through this exact same situation with my S-Corp last year! The key thing to remember is that you reduce wage expenses by the FULL ERTC amount you received (minus any interest). This includes both the refundable and nonrefundable portions. When I was doing my amendments, I made the mistake initially of only reducing by the refundable portion, but my CPA caught it and explained that the IRS considers the entire credit as essentially reimbursing wages you already deducted. You can't get a tax benefit twice for the same expense. Make sure you're amending the correct tax years - so if you got credits for 2020 Q2-Q4 and 2021 Q1-Q3, you'll need separate amended 1120S forms for each year. Also, don't forget that these wage expense reductions will flow through to your K-1 and affect your personal return too. Good luck with getting everything sorted before your accountant gets back! Having all your documentation organized will definitely make that meeting go much smoother.