Reminder: she might still need to file even if she makes less than $13,850 if she had any taxes withheld and wants a refund!

Just went through this exact situation last year! You can definitely still claim her as a dependent. The main thing is that you're providing more than half her support (food, housing, clothes, etc.) and she lives with you more than half the year. Her having a job doesn't disqualify her at all. Make sure when she files that she checks the box indicating someone else can claim her as a dependent - this prevents the IRS from getting confused when both returns are processed. Good luck!

Has anyone considered how ASC 606 specifically applies to this situation? I think step 5 of the revenue recognition model is most relevant here - "Recognize revenue when (or as) the entity satisfies a performance obligation.

This is a great discussion and I'm learning a lot from everyone's experiences. I run a small electronics repair shop and have been struggling with this exact issue for months. What I've found helpful is creating a clear internal process to document when repairs are actually "complete." We take photos of the finished work and have the technician sign off digitally with a timestamp. This creates a clear audit trail for when the performance obligation was satisfied. One thing I'm curious about - for those of you who recognize revenue at repair completion, how do you handle warranty obligations? Do you set up a separate liability account for potential warranty work, or do you handle it differently? I want to make sure I'm accounting for all aspects of the transaction properly. Also, has anyone dealt with customers who dispute the completion date? We had one situation where a customer claimed we hadn't actually finished the repair when we said we did, which made me question our documentation process.

anybody else notice the tap website is down like every other day? 🤔

I'm in the same situation! Filed my Mississippi return about a month ago and still waiting. Thanks for asking this question - the www.dor.ms.gov/tap link that Daryl shared is exactly what I needed. Just checked and my refund is finally showing as "in process" so hopefully it'll come through soon. Mississippi definitely takes way longer than federal but at least now we can track it!

Has anyone mentioned the timing issue here? June 15 is coming up fast and normal ITIN processing takes 6-8 WEEKS minimum. I learned this lesson the hard way with prize money from a Seoul competition. Here's what you should do immediately: 1. Contact ETH Denver and explain the situation - ask for an extension 2. Request they give you written confirmation they'll accept "Applied For" in the TIN field temporarily 3. Submit your W-7 ASAP using the tax treaty exception 4. If they won't extend past June 15, be prepared that they might withhold the 30% - but you can still claim a refund by filing a 1040NR next year That's the nuclear option if everything else fails. Also, double check the actual Poland-US tax treaty text. Some treaties specifically exempt certain types of awards and scholarships completely!

This is a really complex situation that many international hackathon winners face! I went through something similar with a prize from a blockchain conference in Miami. One thing that helped me was understanding that the W-8BEN and W-7 timing issue isn't as circular as it seems. The IRS actually has an internal procedure for this - you can submit your W-7 with a copy of your DRAFT W-8BEN (showing "Applied For" in the TIN field), along with documentation from ETH Denver showing they require the ITIN for treaty benefits processing. Also, check if ETH Denver has dealt with international winners before. Many larger organizations have standard procedures for this exact situation and may even have relationships with Certified Acceptance Agents who can expedite the process. For the documentation requirement, your official award notification email should be sufficient, but if you have any certificate or formal documentation of your win, include that too. The IRS wants to see proof that you're legitimately entitled to claim treaty benefits on this specific income. Given the June 15 deadline, I'd recommend calling ETH Denver immediately to discuss options. Many withholding agents are more flexible than they initially appear, especially when you can demonstrate you're actively working to comply with the requirements.

Has anyone used TurboTax Self-Employed for estimated taxes? Their website says it can help calculate quarterly payments but I'm not sure if it's worth paying for the full year just to figure out my AGI for estimated taxes.

Great thread! As someone who made the same transition from W-2 to freelance last year, I can share what worked for me. The key thing I learned is that AGI calculation for estimated taxes is actually pretty straightforward once you break it down: Your AGI = Total Income - Business Expenses - Self-Employment Tax Deduction - Other Above-the-Line Deductions For variable income, I use what I call the "true-up method" each quarter: 1. Calculate my actual year-to-date AGI based on real numbers 2. Project what my full-year AGI will be based on current trends 3. Calculate the tax on that projection 4. Subtract what I've already paid in estimates 5. Pay 25% of the remaining balance (since there are 4 quarters) This keeps me from overpaying early in the year when income is low or underpaying when I have a good month. The IRS doesn't care if your payments are uneven as long as you hit the safe harbor amounts by year-end. Also, don't forget that as a freelancer, you can deduct things like your home office, business phone, professional development, and even some meals if they're business-related. These all reduce your AGI and lower your estimated tax burden.