Since you'll be transitioning between different arrangements (pre-LLC temp work, LLC work, and potentially regular employment), make sure you keep extremely detailed records of: 1) Dates worked for each family/client 2) Amount paid and payment method 3) Who controlled the work terms for each position 4) Any expenses you incurred This will be super helpful when tax time comes. I learned this the hard way after working as both a nanny and running a small childcare service from my home. Also, don't forget that even if the family doesn't need to issue a W-2 because you're under the threshold, ALL income still needs to be reported on your tax return, regardless of where it came from.

As someone who navigated a similar situation with my own childcare business, I'd recommend keeping it simple while you're in this transition period. Since you're under the $2400 threshold and it's temporary, you can continue with the current Venmo arrangement, but make sure you're documenting everything properly. Here's what I learned from my experience: 1) Keep detailed records of all payments, dates, and hours worked - this protects both you and the family 2) Even though they won't issue a W-2, you still need to report all income on your personal return (not your LLC return) since you're technically their household employee 3) Consider having a simple written agreement that outlines the temporary nature of the arrangement and expected end date Once you transition to finding regular babysitting clients through your LLC, you can then operate as a true independent contractor with proper business practices. The key is keeping these two income streams separate in your records - the nanny income goes on your personal return, and future LLC babysitting income goes through your business. Don't overthink it for now - just focus on good documentation and proper reporting when tax time comes!

Just a heads up, the taxation of scholarships also depends on what type of visa you have. I'm on F-1 and discovered that we're generally considered "non-resident aliens" for tax purposes during our first 5 calendar years in the US, which means different tax rules. I messed up last year by using TurboTax, which doesn't handle international student taxes correctly. Sprintax is actually better for our situation, so I think you're using the right software.

I completely understand your panic - I went through the exact same shock last year! The $3,300 bill sounds about right if a significant portion of your scholarship was used for living expenses rather than tuition. Here's what likely happened: when you entered your total scholarship amount into Sprintax, it correctly identified that only the portion used for qualified educational expenses (tuition, required fees, books) is tax-free. The rest - anything used for housing, meals, personal expenses - is taxable income for international students. As an F-1 student, you're considered a non-resident alien for tax purposes, which means stricter rules apply to scholarship taxation compared to US citizens. The good news is that if you can document exactly how much of your scholarship went directly to tuition and required fees, you can reduce the taxable amount. I'd recommend going back through your Sprintax filing and double-checking that you properly separated qualified vs non-qualified expenses. Also, since you're from Malaysia, check if the US-Malaysia tax treaty provides any student benefits that might apply to your situation. Don't lose hope - there are often ways to reduce what you owe once you understand the rules better!

17 Has anyone dealt with state taxes for NRAs? I understand the federal rules a bit better now, but I worked in California and they're notorious for aggressive tax collection. Do the same NRA exemptions apply at the state level?

This thread has been incredibly helpful! As someone who just moved from the US back to my home country and is facing similar capital gains questions, I wanted to add a few points that might be useful: 1. **Documentation is key** - Keep detailed records of when you received company shares, your employment dates, and when you left the US. The IRS may need this to determine if gains are ECI. 2. **Vesting vs. Sale timing matters** - Even if shares vested while you were in the US, selling them after becoming an NRA can change the tax treatment. The "source" of the income becomes important. 3. **Watch out for Form 8833** - If you're claiming treaty benefits to reduce or eliminate US tax on capital gains, you might need to file this form along with your 1040-NR. 4. **FIRPTA considerations** - While most stock sales aren't affected, if you have any US real estate investments, there are different rules under the Foreign Investment in Real Property Tax Act. The tax treaty angle mentioned earlier is really important. Many countries have specific provisions for capital gains that can override the general ECI rules. Definitely worth looking into your specific country's treaty with the US. Thanks to everyone who shared their experiences - this kind of real-world insight is so much more valuable than trying to parse through IRS publications alone!

Something important that nobody has mentioned yet - you need to make sure you're still explicitly electing Section 179 on your Form 4562 even though the deduction is completely phased out this year. If you don't make the election, you can't carry forward the disallowed amount!

This is such a helpful discussion! I'm dealing with a similar situation where we purchased $3.2 million in equipment this year and got completely phased out of Section 179. Reading through everyone's responses, I think I need to seriously consider the bonus depreciation route that Natalie mentioned instead of carrying forward the Section 179. Quick question for the group - if I'm understanding correctly, with bonus depreciation at 80% for 2024, I could potentially deduct $2.56 million this year ($3.2M × 80%) versus waiting to use a Section 179 carryforward in future years when bonus depreciation will be lower? That seems like it could be significantly more advantageous, especially since bonus depreciation drops to 60% next year. Has anyone done the math comparison between taking bonus depreciation now versus Section 179 carryforward for large equipment purchases?

Direct Deposit is the way 2 go bestie... learned that lesson last year when my check got lost in the mail 💀

Been there with the daily WMR checking! 😅 From my experience, once you get the 846 code, paper checks usually arrive 5-10 business days later. Mine took exactly 7 days last year. The waiting is the worst part but at least once you see that 846 you know your money is coming! Pro tip: set up USPS Informed Delivery so you can see when the check is actually coming in your mail that day - saves some anxiety!