One thing nobody mentioned - as a self-employed person, you should also be making quarterly estimated tax payments throughout the year. Since you don't have an employer withholding taxes, you're responsible for paying as you go. If you wait until tax filing time to pay everything, you might face underpayment penalties.

As someone who also came to the US and started a business, I completely understand your confusion! The tax system here is so different from other countries. Just wanted to add a few practical tips that helped me: 1. Keep separate bank accounts - one for business income/expenses and one personal. This makes tracking everything so much easier when tax time comes. 2. Consider using accounting software like QuickBooks Self-Employed or even a simple spreadsheet to track your monthly profit/loss. It really helps you see the big picture and plan for quarterly payments. 3. Since you're married filing jointly with relatively low taxable income after deductions, you might qualify for some tax credits like the Earned Income Credit - definitely worth looking into. The learning curve is steep but you'll get the hang of it. Don't be afraid to consult with a tax professional for your first year or two - the peace of mind is worth the cost when you're building your business!

This thread has been super helpful! As someone who also recently started self-employment, I had the exact same confusion about business expenses vs. personal deductions. One thing I learned the hard way is to keep meticulous records of ALL your business expenses throughout the year - don't wait until tax time to sort it out. I use separate bank accounts and credit cards for business vs. personal expenses, which makes everything much cleaner when it's time to file. Also, @Sofia Torres, since you're new to the US tax system, you might want to consider working with a tax professional for your first year or two of self-employment. The peace of mind is worth it, especially when dealing with Schedule C, self-employment tax, and quarterly payments. Once you understand the process, you can potentially handle it yourself in future years. The key takeaway from this discussion is definitely that business expenses reduce your Schedule C profit FIRST, then you apply the standard deduction to whatever income flows to your personal return. Keep those two concepts separate and you'll be fine!

This has been such an enlightening thread! I'm also self-employed and had similar confusion when I first started. One thing I wanted to add that might help @Sofia Torres and other newcomers - don't forget about the QBI (Qualified Business Income) deduction if you're eligible. Since your LLC will likely be taxed as a sole proprietorship, you may be able to deduct up to 20% of your qualified business income on top of everything else discussed here. With your $15k net profit, that could be an additional $3k deduction on your personal return, potentially bringing your taxable income to zero even without the full standard deduction. The QBI deduction has income limits and other rules, but at your current income level, you should qualify. It's worth looking into because it's a relatively new deduction (started in 2018) that many people don't know about. Combined with the standard deduction, it can be really beneficial for small business owners! Just another layer to the tax code, but a helpful one in this case. Definitely something to discuss with a tax professional if you decide to go that route.

Don't forget about reporting requirements! While the transfer itself might not be taxable beyond potential currency gains, you may need to file an FBAR (FinCEN Form 114) if your foreign accounts exceeded $10,000 total at any point during the year. I learned this the hard way after moving money between my Canadian and US accounts. The penalties for not filing an FBAR can be severe even if you don't owe any taxes. There's also Form 8938 if your foreign assets exceed certain thresholds, but that typically applies to residents, not someone on a J-1 visa. Since you were on a J-1 and never a US resident for tax purposes, your reporting requirements might be different, but it's worth checking just to be safe.

Just went through this exact situation last month when transferring funds from my US account back to Australia after finishing my F-1 OPT period. Here's what I discovered: The transfer itself is NOT taxable - you're just moving your own money between accounts. However, you do need to be aware of potential foreign exchange gains/losses. Since you earned the money at one exchange rate and are transferring at potentially a different rate, any gain could technically be taxable income. For your J-1 situation specifically, since you were never a US resident for tax purposes, your obligations are more limited than someone who was a resident. But you should still document the original exchange rates when you earned the money versus when you transfer it. One thing that caught me off guard - make sure to check if you need to file an FBAR. Even though you're not a US resident, if your UK account (or combination of foreign accounts) exceeded $10,000 at any point during the tax year, you might still have FBAR filing requirements. The rules can be tricky for non-residents with US source income. I'd recommend keeping detailed records of when you earned the money, the exchange rates at that time, and the rates when you transfer. That way you're covered if there are any questions later.

I've been lurking in this community for a while but finally decided to join because this topic hits close to home! My spouse and I are actually considering a similar move - we have a job opportunity that would require relocating for about 2-3 years, and we've been debating whether to sell our house or rent it out. Reading through all these responses has been incredibly eye-opening. I had no idea about the depreciation requirements or the complexity of multi-state tax filings. The insurance aspect that @Ella rollingthunder87 mentioned is something we definitely hadn't considered either. A couple of questions for the group: - How do you handle tenant screening and management from a distance? The 8% management company fee mentioned by the original poster seems reasonable, but I'm curious about others' experiences with property management companies. - For those who've done this temporarily and moved back, was it worth it financially compared to just selling and buying again later? Thanks to everyone who's shared their experiences - this thread is exactly the kind of real-world advice that's hard to find elsewhere!

This is such a valuable discussion! I'm new to this community but have been dealing with a similar situation for the past year. We relocated from Texas to Colorado for a temporary work assignment and decided to rent out our Austin home rather than sell it. One thing I haven't seen mentioned yet is the importance of understanding your state's landlord-tenant laws, especially when you're managing from a distance. Texas has pretty landlord-friendly laws, but I quickly learned that certain notice requirements and deposit handling rules are different from what I expected. Your property management company should handle most of this, but it's good to understand the basics. Also, regarding the multi-state tax situation - I found that Colorado requires non-residents to file if they have any Colorado income, but since my rental property is in Texas (which has no state income tax), I only had to worry about federal taxes and Colorado taxes on my work income. The combination actually worked out better than I expected from a tax perspective. For anyone considering this route, I'd also suggest getting a good CPA who specializes in rental properties and multi-state taxes. The extra cost is worth it for the peace of mind, especially in the first year when you're figuring everything out. The tax software I used to use for simple returns just couldn't handle the complexity once I became a landlord. One last tip - document everything from day one. Take photos of the property condition before tenants move in, keep copies of all communications, and maintain detailed records of every expense. It's much easier to stay organized from the beginning than to try to reconstruct everything later!

Great advice in this thread! Just wanted to add one more thing that caught me off guard when I had a big win - don't forget about the impact on other tax benefits. My $19k slot win pushed my adjusted gross income high enough that I lost eligibility for some tax credits I normally qualify for, and it also affected my student loan interest deduction. If you're close to any income thresholds for things like the Earned Income Tax Credit, Child Tax Credit, or education credits, this extra income could bump you out of eligibility. It's worth running the numbers both ways to see the full impact. Sometimes what looks like a $22k win can cost you more than you expect when you factor in lost credits and deductions on top of the taxes owed. Also seconding the advice about estimated payments - definitely worth talking to a tax pro about whether you need to make a payment by January 15th to avoid underpayment penalties!

Unfortunately, you can't spread gambling winnings across tax years - the IRS requires you to report them in the year you actually received the money. So your $22k jackpot has to be reported on your 2025 return regardless of any threshold effects. However, there are a few strategies that might help minimize the impact on other tax benefits: 1. If you're married, consider whether filing separately vs jointly gives you a better overall result when factoring in lost credits 2. Maximize any available deductions to bring your AGI back down - things like traditional IRA contributions, HSA contributions, or business expenses if applicable 3. If you have any major expenses coming up that qualify for tax benefits (like education or medical expenses), timing them strategically might help The good news is that some credits phase out gradually rather than cliff off completely, so the impact might not be as severe as losing the entire credit. But you're absolutely right that these threshold effects can be brutal - I've seen people lose thousands in credits and deductions from what seemed like a straightforward windfall. Definitely worth running scenarios with tax software or talking to a CPA before making any major financial decisions with the winnings. Sometimes the "tax tail" really can wag the dog on these big gambling wins!