Wow, I had no idea about the Form 8822 being processed separately! That explains so much about why my address update through my tax return didn't seem to work. I've been banging my head against the wall trying to figure this out. Thank you for sharing this crucial piece of information!

Did you submit the Form 8822 by mail or was there an online option? And did you receive any confirmation when the address change was processed?

This is super helpful, thank you! I'm definitely going to try the USPS address lookup tool first - I never thought about the standardization difference between what I think my address is versus what the postal service has on file. The 6-8 week lag time also makes total sense given the timing of when I filed. It's reassuring to know the automated phone line is reliable too, since I was dreading having to wait on hold forever to talk to someone. Appreciate the step-by-step approach!

This is so true. My parents put me on their house title as "joint tenants with rights of survivorship" which had totally different tax implications than if it had been "tenants in common." When we later changed the deed, the specific wording on the original affected everything.

This is really helpful advice about getting a professional appraisal! I hadn't thought about the stepped-up basis angle either. Could you explain more about how inheriting property vs receiving it as a gift affects the tax basis? My in-laws are in their late 60s, so this might be something worth considering in our decision-making process. Also, when you mention property tax reassessment - does removing owners from the deed typically trigger a reassessment in most states? We're in California if that makes a difference.

Great question about the stepped-up basis! When you inherit property, your tax basis becomes the fair market value at the time of inheritance, essentially "stepping up" from what the original owner paid. So if your in-laws bought the house for $200k and it's worth $375k when you inherit it, your basis becomes $375k. If you receive it as a gift, you keep their original basis (around $200k), meaning much higher capital gains tax when you sell. For California specifically - yes, removing owners from a deed can trigger a property tax reassessment under Proposition 13, but there are some family transfer exemptions. The parent-to-child exclusion might not apply here since it's in-laws, but you should definitely check with the county assessor about potential exemptions before making any transfers. California's property tax increases can be substantial, so this could be a major factor in your decision. Given that your in-laws are in their late 60s, the inheritance vs gift decision becomes even more important to analyze with a professional.

1 That's interesting - can you explain what makes someone "effectively connected" with US business? None of my freelancers ever come to the US physically. Would making YouTube content primarily for US audiences count as connected to US business?

7 It's not about the audience being in the US - it's about where the work is physically performed. If your freelancers are never physically present in the US while doing the work, they wouldn't typically be considered to have income effectively connected with a US trade or business. The IRS looks at where the person is physically located when performing the services. Since your contractors are working entirely from their home countries, they should be treated as foreign contractors, requiring W-8BENs but not 1099-NECs. That said, digital services taxation is evolving, so it's worth checking with a tax professional for your specific situation.

22 Good point! What's the best way to maintain those records? Is saving PDFs of PayPal transactions enough, or should I be doing something more formal?

PDF receipts are a good start, but I'd recommend creating a simple spreadsheet that tracks: contractor name, country, payment date, amount, PayPal transaction ID, and what project/service it was for. Export your PayPal data quarterly and back it up in multiple places. The IRS wants to see a clear business purpose for each payment, so having project details documented is crucial. Also keep copies of any invoices the contractors send you - that shows the business relationship clearly.

Technically yes, you're supposed to report all income even if you don't get a form. But realistically, for small amounts like security deposit interest, the IRS isn't likely to come after you. If the landlord didn't issue 1099s, the IRS wouldn't know about it anyway. I wouldn't bother amending unless we're talking about significant amounts.

Thanks for this detailed info! I'm definitely primarily a student (taking 15 credit hours this semester) and only work 15 hours/week in the library. So it sounds like I should probably be exempt then? I'll check if my Medicare taxes are being withheld on my next paycheck. If they are, should I just go to the payroll office and ask about the Student FICA Exemption?

Yes, with 15 credit hours and working only 15 hours per week, you should absolutely qualify for the student FICA exemption! Check your paystub first to confirm whether Medicare taxes are being withheld. Look for a line that says "Medicare" or "MED" with a deduction amount - it's usually 1.45% of your gross wages. If you see Medicare taxes being withheld, definitely visit your campus payroll office in person and specifically ask about the Student FICA Exemption. Bring proof of your enrollment status (like your course schedule showing credit hours) and your work schedule. They may need to update your classification in their system. If they've been incorrectly withholding all semester, you can request a refund of those withholdings as well.

Can you explain more about the difference between public and private universities for this? I work at a private university in the admissions office and now I'm confused if different rules apply to me.

Great question! The distinction is important but the student FICA exemption rules are actually the same for both public and private universities. The difference is mainly in terminology and reporting: For public universities (government employers): Your wages might be labeled as "government wages" on tax forms, but if you qualify for the student exemption, they still won't be subject to Medicare tax. For private universities: The exemption works exactly the same way - if you're enrolled at least half-time and work under the hour thresholds, you're exempt from Medicare and Social Security taxes. The key factors for ANY university (public or private) are: 1) You must be enrolled at least half-time, 2) Your primary relationship with the school is as a student, and 3) You typically work fewer than 20 hours/week during academic terms. Since you work in admissions at a private university, you'd follow the same exemption rules. Check your paystub to see if Medicare taxes are being withheld - if you meet the criteria above, they shouldn't be!