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Just want to point out that the process might be simpler than some are making it sound. I'm from the UK selling through Amazon US, and the state I needed a permit in (Washington) had a streamlined registration process for foreign businesses. The key is researching the specific requirements of the states you're dealing with. For example, some states have simplified seller use tax returns for marketplace sellers. And five states (Alaska, Delaware, Montana, New Hampshire, and Oregon) don't even have sales tax! Look into whether you qualify for any streamlined filing programs or reduced frequency returns for smaller businesses. My permit requires filing only annually because my volume is relatively low.
As someone who went through this exact situation last year (I'm based in Germany selling on Amazon US), I can confirm what others have said - you absolutely need the sales tax permit first to get a valid resale certificate. One thing I'd add that hasn't been mentioned much: check if your state offers any expedited processing for foreign businesses. When I registered in Nevada for my supplier there, they had a "priority processing" option that cut the wait time from 4-6 weeks down to about 10 business days for an additional fee. Since I had suppliers waiting for my resale certificate, it was worth the extra cost. Also, don't forget about the ongoing compliance requirements. Even with Amazon handling your sales tax collection, you'll still need to file periodic returns in states where you have permits. Most states allow electronic filing which makes it easier for us international sellers, but you'll want to set up reminders since the penalties for late filing can be steep. One last tip: keep detailed records of all your wholesale purchases with resale certificates. If you ever get audited, you'll need to prove those purchases were legitimately for resale and not for your own use.
This is incredibly helpful, especially the tip about expedited processing! I had no idea that was even an option. As someone just starting this process, the 4-6 week wait time seemed like it would really delay my ability to work with suppliers. Quick question - when you mention keeping detailed records of wholesale purchases, do you mean just the invoices and resale certificates, or is there other documentation I should be maintaining? I want to make sure I'm set up properly from the beginning rather than scrambling later if there's ever an audit. Also, did you find the electronic filing process straightforward even with the international banking/address complications? I'm worried about how to handle things like payment methods for any taxes that might be due.
Btw is anyone else having issues with TurboTax when trying to figure this out? It keeps giving me confusing prompts about whether i "can" be claimed vs if i "will" be claimed as a dependent.
Yeah, TurboTax is super confusing on this! The question isn't whether you WILL be claimed, but whether you CAN legally be claimed based on the tests the others mentioned. I ended up using FreeTaxUSA instead because their questions were more straightforward about dependency status.
Great question, Malik! The key thing to remember is that all four dependency tests have to be met for your parents to claim you - if you fail even one test, they can't claim you as a dependent. From what you've described, it sounds like you're failing the support test since you're paying for your own tuition, rent, and living expenses. The fact that you're under 24 and a full-time student only matters if your parents are ALSO providing more than half your support. One thing to be extra careful about: make sure you're counting everything when you calculate support. This includes the fair market value of housing (even dorm rooms), all food costs, medical expenses, transportation, etc. If you lived with your parents for those few months during shutdown, you'd need to factor in the value of that housing too. Since you mentioned loans and scholarships - student loans in YOUR name count as support YOU provided to yourself, while scholarships are generally considered third-party support and don't count toward either side's percentage. Keep detailed records of all your expenses from this year in case there are any questions later. Sounds like you're on the right track to file independently!
I received my refund through Venmo yesterday (3/14) even though my DDD was 3/15! It posted at 2:18pm EST and showed up as "US TREASURY 310 TAX REF" just like others have mentioned. I was worried about potential delays after reading horror stories, but it actually came a day early. For anyone still waiting, I'd suggest checking your account transcript on the IRS website - if you see the TC846 code with your DDD, the money is definitely on its way. Venmo seems to process these deposits in the afternoon, so don't panic if you don't see it first thing in the morning like with traditional banks. Hang in there!
That's such a relief to hear! I'm also waiting for a 3/15 DDD and have been anxiously checking all day. It's reassuring to know that Venmo can actually deposit early sometimes. Did you get any notification from Venmo when it hit, or did you just happen to check at the right time? I've been setting reminders to check every few hours since I don't want to miss it when it comes through.
I've been using Venmo for tax refunds for three years now, and here's what I've learned about their timing patterns: They typically process government ACH deposits in two batches - one around 11:30am EST and another around 3:15pm EST. For DDD 3/15, I'd expect most Venmo deposits to hit during that afternoon batch today. Last year my refund was 6 hours later than my friend who used Chase, but it did arrive on the correct DDD. One tip that helped reduce my anxiety - enable push notifications in your Venmo app so you'll get an alert immediately when it posts. The waiting game is brutal, but from what I've observed, Venmo is generally reliable for tax refunds, just slower than traditional banks. Keep checking through 5pm today before worrying!
Thanks for sharing those specific timing windows! I'm new to using Venmo for tax refunds and this is exactly the kind of detailed info I was looking for. My DDD is also 3/15 and I've been checking obsessively since midnight. It's now 1:30pm EST so sounds like I should watch for that afternoon batch you mentioned around 3:15pm. I definitely enabled notifications after reading your suggestion - great tip! Did you ever experience any delays beyond the normal DDD, or have they always been pretty consistent with getting it to you on the right day even if it's later in the day?
Don't forget about the Earned Income Credit! My ex and I live together with our kids (not married) and we found out that if the lower earning parent claims the kids, you might qualify for EIC which can be substantial.
But they both make six figures. EIC phases out completely around $60k even with multiple kids. They're way beyond the income limits for that credit.
You're totally right! I completely missed the part about them both making around $120k. At that income level, they're definitely over the EIC threshold. For their income level, they should focus more on optimizing the Child Tax Credit, Additional Child Tax Credit, and the Child and Dependent Care Credit. They should also carefully consider who should claim Head of Household status since that provides a more favorable tax bracket structure than filing as Single.
As someone who went through a very similar situation last year with my partner, I'd strongly recommend running the numbers both ways before deciding. We have two kids (3 and 5) and similar income levels, and initially thought splitting the dependents made the most sense. However, after calculating everything out, we found that having me claim both children and file as Head of Household saved us about $2,800 compared to each claiming one child. The key was figuring out who actually pays "more than half" of the home maintenance costs - it's not just mortgage, but also utilities, repairs, property taxes, homeowner's insurance, etc. Since you own the home, you're probably paying property taxes and homeowner's insurance directly, which might push you over the 50% threshold even with her contributing half the mortgage payment. I'd suggest adding up ALL your housing costs for the year and see where you land. Also, whoever claims the kids can claim the childcare expenses for the Dependent Care Credit, regardless of who physically writes the checks to the daycare. This credit can be worth up to $2,100 for two kids, so factor that into your calculations too. One last tip - keep detailed records of who pays what throughout the year. The IRS sometimes scrutinizes unmarried couples' filing status more closely than married couples.
Zara Rashid
I strongly recommend finding a local independent CPA instead of any chain tax service. After getting burned by H&R Block (they missed over $3,000 in deductions for my small business), I found a local CPA through my chamber of commerce. The difference is night and day! She charges me $400 flat rate no matter how complicated my return gets, is available year-round for questions (not just during tax season), and has saved me thousands by helping with tax planning throughout the year. Most importantly, she actually takes time to understand my business and financial situation.
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Luca Romano
ā¢How did you vet the CPA before hiring them? I'm nervous about just picking someone random.
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Yara Nassar
This is exactly why I've been hesitant to use any of the big chain tax services! I've been doing my own taxes with TurboTax for years, but I always wonder if I'm missing something. Your experience with H&R Block confirms my worst fears - paying hundreds of dollars only to have someone miss obvious deductions and credits. The education credit miss is particularly concerning since that's one of the more straightforward credits to identify if someone is actually reviewing your documents. The fact that they tried to charge you extra to fix their own mistakes is just outrageous. I'm definitely bookmarking this thread for all the alternative suggestions people have shared. It sounds like there are much better options out there, whether it's sticking with quality DIY software or finding a properly qualified CPA. Thanks for sharing your experience - it's a good reminder that "professional" doesn't always mean better, especially when the business model prioritizes speed over accuracy.
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