One thing nobody mentioned - if you do need to file in multiple states, make sure your accounting software is set up correctly to track income and expenses by state! I learned this the hard way. We had jobs in 3 states last year, and come tax time, we had to go back through ALL our receipts and invoices to figure out which state each transaction belonged to. Complete nightmare. QuickBooks and other software can tag transactions by location/state if you set it up right from the beginning.

As someone who's been through this exact situation, I'd strongly recommend getting a consultation with a tax professional before making your decision. Even if the out-of-state job is small, the compliance requirements can be tricky. One thing that helped us was creating a simple spreadsheet to track all the potential costs: additional state filing fees, estimated tax prep costs, any required business registrations in the new state, and the time value of dealing with the extra paperwork. When we added it all up for our first small out-of-state project, we realized we needed to increase our project fee by about 15% just to break even on the tax complications. Also consider whether this could lead to ongoing work in that state. If it's truly a one-time thing, the hassle might not be worth it. But if it could open doors to more business there, the initial setup costs become more justified. The good news is that once you've figured out the process for one additional state, adding more becomes much more manageable since you'll understand the workflow.

Has anyone actually calculated whether this strategy is worth the hassle? I mean, if we're talking about "a few thousand" in unrealized gains as OP mentioned, and you can harvest $1,250 per year tax-free, it might take only 2-3 years to completely step up the basis, right? Also, what about the tax forms? Do kids need to file their own returns for this, or does it go on the parent's return? Trying to understand the paperwork burden before I try this.

One thing I'd add to this discussion is to be mindful of the timing throughout the year. Since you're working with a $1,250 annual threshold, you don't want to accidentally realize all your gains early in the year and then miss out on additional harvesting opportunities if the investments continue to appreciate. I've found it helpful to spread the harvesting across multiple quarters - maybe $300-400 per quarter - which also helps with dollar-cost averaging when you rebuy the positions. This approach also gives you more flexibility if market conditions change or if you discover additional tax-efficient opportunities later in the year. Also worth noting that if your children are approaching the age where they might start having summer jobs or other income sources, you'll want to factor that into your multi-year harvesting timeline. The strategy becomes less effective once they have significant earned income that might push them into higher tax brackets.

Has anyone looked into whether these foreign pension contributions can be excluded from income under the Foreign Earned Income Exclusion? I'm trying to figure out if I need to add back in my Colombian pension contributions when calculating my FEIE amount.

I went through this exact same situation with my Colombian AFP account last year. After consulting with a tax professional who specializes in expat taxes, I can confirm that you absolutely need to report it on both FBAR and Form 8938. The key points that apply to your Porvenir account: 1. **FBAR reporting is required** - Even though it's mandatory and you can't access it until retirement, you still have a beneficial interest in the account. The private management by AFP companies means it doesn't qualify for any government pension exemptions. 2. **Form 8938 reporting is also required** - Since your account exceeds the $10,000 threshold and you're filing as single (assuming from your post), you'll need to include it on Form 8938 as well. 3. **Valuation can be tricky** - Make sure to convert the peso value to USD using the exchange rate on December 31st of the tax year. Your AFP should provide year-end statements that show the account balance. 4. **Don't forget about employer contributions** - If your employer is making matching contributions to your AFP account, those count toward your total account value for reporting purposes. The penalties for non-compliance are severe, so it's definitely better to over-report. I learned this the hard way after initially thinking my account might be exempt due to the retirement restrictions.

Hey Savannah, I completely understand your anxiety about this - I've been there! The 26th is when they mail it out, not when you'll receive it. From my experience with mailed refund checks, you're typically looking at 5-7 business days after that mail date for delivery, sometimes up to 10 days depending on your location and postal service efficiency. I'd definitely recommend signing up for USPS Informed Delivery like others mentioned - it's free and will give you peace of mind by showing you exactly when your Treasury check is coming. Also, if you're worried about the medical bills, consider reaching out to your providers to explain the situation - many are understanding and will work with you on payment timing if you can show them your WMR status. The waiting is definitely the hardest part, but your check will arrive! Hang in there! 💙

Hey Savannah! I totally feel for you - that waiting period when you really need the money is so stressful! Just to add to what everyone else has said, the 26th is definitely the mail date, not the delivery date. I've had to do paper checks a few times over the years due to various bank issues, and it's always been 5-7 business days after that mail date for me (I'm in a suburban area). One thing I learned is that Treasury checks from the IRS come in a very distinctive white envelope with clear government markings, so they're pretty easy to spot when they arrive. Also, if it makes you feel any better, these checks are actually pretty secure - they have multiple security features and can be reissued if something goes wrong. The USPS Informed Delivery suggestion is golden - I wish I had known about that during my first paper check experience! Try to stay positive, and definitely reach out to your medical providers if you need a short extension. Most are very understanding about tax refund timing. You've got this! 💪

Friendly reminder to everyone discussing RSUs: there are actually TWO tax events to worry about! 1. When RSUs vest: This is treated as ordinary income (what everyone's discussing in this thread) 2. When you sell the shares: Any gain or loss after vesting is capital gain/loss For example, if RSUs vest at $100/share and you sell later at $150, you'll pay: - Ordinary income tax on the $100 at vesting - Capital gains tax on the $50 appreciation when you sell I see a lot of people getting confused because they only think about one of these tax events. Both need to be reported properly!

Yes, you should definitely consider filing amended returns if you've been using the wrong cost basis! The cost basis for RSUs is always the fair market value on the vesting date (not the grant date), since that's when you already paid ordinary income tax on that amount. Using the grant date price as your cost basis means you've been paying capital gains tax on appreciation that was already taxed as ordinary income at vesting - essentially double taxation. If you've held and sold RSU shares over multiple years, this could add up to significant overpayment. You can file Form 1040X (Amended U.S. Individual Income Tax Return) for up to 3 years from the original filing date. You'll need your brokerage statements showing actual sale prices and your RSU vesting records showing the fair market value on each vesting date. The IRS will refund any overpaid taxes with interest. Given the complexity of equity compensation, this might be worth consulting with a tax professional who specializes in stock compensation to make sure you're calculating everything correctly before filing amendments.