For those discussing dual-status returns, there's an important limitation to be aware of: you cannot take the standard deduction on a dual-status return unless you're a resident of Canada, Mexico, South Korea, or India. You must itemize deductions for the resident portion of the year. Also, if you're filing dual-status because you left the US, you might want to look into any 401k or IRA accounts you have. There are special considerations for retirement accounts when you become a nonresident.

This is a complex situation that touches on several important tax considerations. Let me add some clarification on a few points that haven't been fully addressed yet. Regarding your December 2024 visit while planning a dual-status return: Since you're entering on a B1 visa as a visitor, those days would typically be counted in the nonresident portion of your year. However, you'll want to be very clear about your departure date and intent when you left in October, as this establishes when your resident status ended. One thing I didn't see mentioned is the exit tax considerations under Section 877A. Since you were a resident alien for multiple years and are ceasing to be a US tax resident, you'll want to verify whether you meet any of the criteria that would subject you to expatriation tax rules. Most people don't, but it's worth checking. For your frequent travel pattern in 2025, keep detailed records of your entry/exit dates and the purpose of each visit. The closer connection exception requires demonstrating that Germany is your tax home, so document your German employment, housing lease dates, utility bills, bank statements, and other ties that show Germany as your primary residence. Also consider that if you do get married and your spouse is a US citizen, they may need to report your foreign bank accounts on their FBAR even if you file separately, depending on signature authority and beneficial ownership rules.

Hey Kristin! Welcome to the world of being an employer - it's definitely overwhelming at first but you'll get the hang of it. Everyone has already given you great advice about the March 12 date (it's just a statistical snapshot, not your actual filing requirement). Since you're using Gusto, I'd recommend double-checking that they're set to file your 941 automatically for you. Most payroll services offer this as part of their service, which can save you from having to worry about the filing deadlines and form preparation. If they're not handling the filing, make sure you know exactly when your Q1 form is due (April 30th) and set that reminder now. Also, don't forget that as a new employer, you might be subject to semi-weekly deposit schedules depending on your payroll amounts. Gusto should handle this automatically, but it's worth confirming so you don't accidentally miss any deposit deadlines. The deposit penalties can be pretty steep even for small amounts. You're asking all the right questions - keep it up!

Great question, Kristin! I went through the exact same confusion when I first became an employer. The March 12 date threw me off completely, but here's what I learned: You absolutely need to file Form 941 for Q1 since you had payroll in that quarter (March 17-31). The "0" on line 1 is correct because you didn't have employees during the pay period that included March 12, but you still report all wages paid from January 1 - March 31 on the rest of the form. Think of line 1 as a government headcount snapshot, while the rest of the form captures your actual tax obligations for the full quarter. This is super common for businesses that hire mid-quarter - the IRS sees it all the time. Since you're using Gusto, definitely verify whether they're filing the 941 for you or just handling deposits. Some payroll services do both, others just handle the money side. Either way, your Q1 deadline is April 30, so you've got time to get it sorted. Welcome to the employer club - it gets easier once you understand the rhythm of quarterly filings!

Has anyone done a Roth conversion with Vanguard specifically? Is there anything unusual about their process compared to other brokerages? I need to do this too but I'm nervous about messing something up.

Great question! I went through this exact same scenario with Vanguard about 6 months ago. You're absolutely right that you only owe taxes on the earnings portion ($450), not the original $3,500 you already paid taxes on. I chose not to withhold taxes during the conversion for a couple reasons: First, as others mentioned, any amount withheld reduces what actually gets converted to your Roth. Second, since the taxable amount is relatively small, it's unlikely to cause underpayment penalties if your regular withholding from work covers most of your tax liability. Just make sure you keep good records of your non-deductible contributions. Vanguard will send you a 1099-R showing the conversion, but you'll need to file Form 8606 to prove to the IRS that you already paid taxes on the original contributions. If you haven't filed Form 8606 in previous years when you made those non-deductible contributions, you should consider filing amended returns to establish your basis properly. The conversion itself is pretty painless through Vanguard's website - just be prepared for several confirmation screens asking if you understand the tax implications!

Has anyone here dealt with converting a farm property from an LLC back to individual ownership before a parent's passing? We did this with my grandfather's farm last year to ensure we got the stepped-up basis, but now I'm worried about potential gift tax implications since the LLC was originally in our names (the kids).

The missing LLC documentation is a red flag that needs immediate attention, especially with BOI reporting deadlines approaching. I'd recommend starting with your state's Secretary of State office - they should have the Articles of Organization on file that will show who signed as the organizer and initial members. For the stepped-up basis question, the key factor is who actually owns the LLC membership interests at the time of your father's death. If he retained ownership (making it a single-member LLC), the property gets stepped-up basis. If you kids already own the LLC, no step-up occurs since you technically already own the property. Given the Medicaid planning aspect, I suspect the LLC ownership was likely transferred to you children to protect the asset, which would unfortunately eliminate the stepped-up basis benefit. However, if your father retained even a small percentage of ownership, that portion would qualify for step-up. You might want to consider having the LLC dissolve and distribute the property back to your father if he's still healthy and the goal is to maximize the stepped-up basis for your family. Just be mindful of the Medicaid lookback period implications that others have mentioned.

mine came yesterday actually! took exactly 2 weeks from when i filed. check ur mailboxes yall

This is exactly why I always check for any processing issues before filing. H&R Block should have notified clients about this upfront - it's pretty frustrating to find out after the fact that your refund timeline just got extended by 1-2 weeks. At least now we know what's going on though. Thanks for sharing this info!