Check if your CPA is trying to claim the Qualified Business Income deduction (QBI) from Section 199A. Its technically on Form 8995 or 8995-A but flows to Schedule 3. The QBI deduction can be up to 20% of qualified business income but you need to have business income to claim it. Some sketchy tax preparers try to classify W2 income as business income to claim this deduction, which is straight up wrong and will get you in trouble. If your income doubled this year to around $75k, that would explain the ~$15k deduction (20% of $75k).

This is a serious red flag situation that you need to resolve immediately before filing. A $14,999 deduction on Schedule 3, Line 8 for someone with only W2 and investment income is highly unusual and potentially fraudulent. Schedule 3, Line 8 is specifically for "Net premium tax credit" - this is related to health insurance marketplace premium tax credits. If you don't get health insurance through the marketplace or if you're not eligible for premium tax credits (which most high earners aren't), this deduction shouldn't exist at all. The fact that your CPA won't respond to emails about this is extremely concerning. Here's what I'd recommend: 1. Demand the complete return with ALL schedules and forms immediately 2. Don't sign or file anything until you understand every line 3. Consider reporting this to your state's board of accountancy if the CPA continues to be unresponsive 4. Get a second opinion from another tax professional This could be anything from a data entry error to intentional fraud. Either way, you're legally responsible for everything on that return once you sign it. The IRS will come after YOU, not your CPA, if there are problems. Given that your previous preparer only had a $140 foreign tax credit on line 20, this massive jump to $14,999 without any major life changes is a huge warning sign. Trust your instincts here.

Quick question about filing requirements - even if my NRA LLC doesn't have US-source income, do I still need to file anything with the IRS? I've heard conflicting things about Form 5472 requirements.

One thing that helped me navigate this maze was understanding that the IRS has specific guidance in Publication 519 for nonresident aliens. It breaks down the source rules pretty clearly - for services, it's generally where you physically perform the work that determines the source, not where your client is located. However, there's an important exception many people miss: if you have a regular place of business in the US and the income is attributable to that office, it becomes US-source even if some work is performed abroad. Since you mentioned working from outside the US with a Wyoming LLC, this likely doesn't apply to you. Also worth noting that even though your LLC might not have US-source income, you'll still need to be careful about state filing requirements in Wyoming. While they don't have state income tax, there may still be annual report filings required to maintain your LLC's good standing.

Just FYI, for 2025 the Social Security wage cap is $168,600 (someone above mentioned this), but wanted to clarify that the Medicare portion of FICA (1.45%) applies to ALL of your income no matter how high. Then there's that additional 0.9% Medicare tax that kicks in after $200k if ur single. I earn about 230k and the Medicare tax is the one that surprises ppl when they get to higher income levels. U never stop paying it no matter how much u make!

Something that helped me when I was in a similar situation (around $250k) was understanding that FICA taxes are actually handled quite differently if you have multiple employers during the year. If you switch jobs mid-year like I did, each employer withholds Social Security tax separately up to the wage cap. So you might end up overpaying Social Security tax if your combined wages from both employers exceed $168,600. The good news is you can claim the excess as a credit on your tax return - you don't have to wait for the IRS to process a separate refund. This was a nice surprise when I filed my taxes after switching jobs halfway through 2024. I got back about $1,200 in excess Social Security tax that had been withheld. Just something to keep in mind if your career situation changes during the tax year!

One thing to consider that hasn't been mentioned much is the depreciation savings. If you're currently driving your 2021 Honda Civic for personal use, you're putting wear and tear on your own asset. With a company car, all that depreciation hits their books instead of yours. I'd also ask your employer about their policy for different types of personal use. Some companies are more restrictive about things like out-of-state trips or using the car for ride-sharing/delivery services. And definitely find out if they have any mileage tracking requirements - some employers want detailed logs of business vs personal use, which can be a hassle. The maintenance aspect is huge too. If the company covers oil changes, tire replacements, repairs, etc., that's real money saved even after the tax hit. I'd estimate what you typically spend annually on your Honda's maintenance and factor that into your decision.

Great question about company car policies! Travel restrictions vary widely by employer. Some companies have no geographic limits as long as you're using it for approved personal use, while others restrict travel to certain states or within a specific radius from your home base. The key things to ask HR about: 1) Geographic restrictions (if any), 2) Whether you need pre-approval for long trips, 3) Who's responsible if something happens out of state, and 4) Whether their insurance coverage changes based on location. Most companies I've seen allow road trips as long as you're not using the car for business purposes like Uber or moving services. But definitely get this in writing - the last thing you want is to be stranded somewhere because you violated a policy you didn't know about. Also worth noting that longer trips will increase your personal use percentage, which affects your taxable benefit calculation. So factor that into your overall cost analysis when deciding if the company car makes financial sense for your situation.

Just be prepared for your ex to potentially file incorrectly anyway. My ex filed as married filing separately even though we were divorced by year-end and it caused my return to be rejected when I tried to e-file as single. It was a nightmare to fix. Maybe reach out to your ex proactively and explain the December 31st rule, or have your tax preparer do it. Might save you both a headache later.

This is such a common source of confusion! I went through almost the exact same situation two years ago. The key thing to remember is that the IRS doesn't care how long you were married to your ex during the year - only your marital status on December 31st matters for filing purposes. Since you were legally married to your new husband on December 31st, you can absolutely file jointly with him. Your ex will need to file as single, not married filing separately, because he was divorced on December 31st. The "married filing separately" status only applies to people who are actually married to each other on the last day of the tax year. I'd suggest getting this information directly from the IRS or a tax professional to share with your ex, since he seems confused about the rules. It might help avoid any filing errors that could cause problems for both of you later. Good luck!