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Since you mentioned income under $100k, watch out for the "tax home" concept too. If you establish that your tax home remains in the EU despite temporary physical presence in the US (like if you maintain housing there and intend to return), you might still qualify for the Foreign Earned Income Exclusion under the "bona fide residence test" even without meeting the physical presence test. It's a bit of a grey area, but worth discussing with a tax professional who specializes in expat taxes. Could potentially exclude most of your income from US taxation rather than just claiming credits.
This is a complex situation that requires careful attention to both timing and documentation. Since you're physically present in the US while working, a few additional considerations: 1. **Work authorization**: Even though you're a US citizen, your EU employer may need to understand the legal implications of having an employee working from the US. Some companies have policies against this due to corporate tax nexus issues. 2. **Estimated tax payments**: Since your EU employer isn't withholding US taxes, you'll likely need to make quarterly estimated payments to avoid underpayment penalties. Use Form 1040ES to calculate what you owe. 3. **Record keeping**: Document everything - dates of travel, where you performed work, foreign taxes paid, and currency conversion rates. The IRS may question the source and timing of your income. 4. **Professional help**: Given the complexity with dual citizenship, foreign employment, temporary US presence, and potential state tax issues, I'd strongly recommend consulting with an Enrolled Agent or CPA who specializes in international tax. The cost is usually worth avoiding costly mistakes. The foreign tax credit route mentioned by others is likely your best approach, but the devil is in the details with your specific circumstances.
This is excellent comprehensive advice! I just want to emphasize the estimated tax payments point - I made this mistake in a similar situation and got hit with penalties even though I paid everything when I filed my return. The quarterly payment deadlines are strict (Jan 15, April 15, June 15, Sept 15) and since your EU employer isn't withholding US taxes, you're essentially treated as self-employed for payment purposes. I ended up owing about $800 in underpayment penalties on top of my regular tax bill. Also regarding the work authorization point - some EU companies actually have specific policies about remote work from certain countries due to tax implications. My former employer in Germany had to set up a whole process when employees wanted to work temporarily from the US because it potentially created US tax obligations for the company itself.
I had a DDD of 2/24 last year with Chime and didn't get it early at all. The IRS batched my payment in what they call a "Weekend Processing Group" which meant even though my transcript showed 2/24, the actual ACH transfer wasn't initiated until 2/24 itself. Have you checked your transcript for code 846? Without that, the payment hasn't even been sent yet. Be prepared to potentially wait until the actual date.
Still waiting here too with a 2/24 DDD and Chime! I've been obsessively checking both my Chime app and my IRS transcript. My transcript shows code 846 with the refund issued date, so I know it's been processed. Based on what everyone's saying, it sounds like it really varies - some people get it 2-3 days early, others right on the DDD. I'm trying not to get my hopes up too much since it seems like the IRS sends these in batches throughout the day. Fingers crossed we all see our deposits soon! The waiting game is brutal when you're constantly refreshing your banking app š
I'm right there with you on the constant app refreshing! Got my DDD of 2/24 with Chime too and I've probably checked my account 50 times today alone. The code 846 on your transcript is definitely a good sign - that means the IRS has officially sent the payment. From what I've seen in this thread, it seems like Chime users are getting theirs anywhere from today through Friday. The uncertainty is definitely the worst part! At least we know it's coming though. Here's hoping we both wake up to a nice surprise deposit tomorrow morning! š¤
pro tip: make sure your bank info is correct bc if theres any issues itll get kicked back and delay everything another 6-8 weeks
yeah triple checked everything should be good to go š¤
Congrats Mei! That's awesome news after such a long wait. Code 846 is definitely the refund issued code, so you should see that money hit your account on or around 1/10/25. I know the feeling of waiting almost a year - it's incredibly frustrating but you're finally at the finish line! Make sure to keep an eye on your bank account starting a day or two before that date, sometimes they process a bit early.
Called my bank and they said they release irs deposits immediately when recieved no matter what the scheduled date is
what bank do u have?
Usually takes 1-3 business days once you see the 846 code! I've been tracking mine for years and it's pretty consistent. The date on your transcript is when the IRS releases the funds, but your bank might post it earlier or on that exact date. Since you're with Chase, they typically don't hold federal deposits - you'll probably see it Monday or Tuesday if your date shows 2/14. Good luck! š¤
Liam Murphy
bruh same. filed in march, still processing. this is my villain origin story fr fr
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Luca Russo
Ugh, I feel your pain! I've been waiting since March too and it's so frustrating. The "still processing" message is like a broken record at this point. I tried calling so many times I could probably recite their hold music from memory š Have you tried checking if there are any issues with your return that might be causing the delay? Sometimes it's something simple like a form that needs verification. Hang in there!
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