Anyone know how to handle this on TurboTax? I tried searching for "rebates" but couldn't find the right section.

I appreciate everyone sharing their experiences here! As someone who's been dealing with this exact situation, I want to add that it's also worth considering state tax implications. While the federal tax treatment is pretty clear (purchase rebates = not taxable, referral bonuses = taxable), some states have different rules or might treat certain types of rewards differently. Also, if you're using rebate apps for business purchases, make sure you're adjusting your business expense deductions accordingly. You can't deduct the full purchase price and keep the rebate tax-free - that would be double-dipping. The IRS definitely notices patterns like that during audits. One more thing - if you're earning significant amounts from referral programs (like $600+ per year), you might want to consider setting aside a portion for taxes since most rebate companies don't withhold anything. Better to be prepared than scramble come tax time!

Don't forget that when you withdraw excess HSA contributions, the earnings portion is taxable as "other income" in the year you make the withdrawal! I learned this the hard way. The excess contribution itself isn't taxed again if you already included it in income (which you would have if it was through your employer's payroll), but the earnings definitely are taxable.

I've been through a very similar situation and want to emphasize something that might save you stress: the IRS is generally reasonable about HSA excess contribution calculations as long as you make a good faith effort and document your methodology. For your specific case with mixed cash/investment balances, I'd recommend the total account approach mentioned by Fatima Al-Suwaidi above. Calculate your HSA's overall rate of return for 2024 (total ending balance minus total beginning balance minus contributions, divided by average balance) and apply that percentage to your excess contribution amount. This method is defensible, straightforward to explain, and accounts for both portions of your account naturally. The key things to remember: 1) Get the excess contribution AND earnings out before your tax deadline (including extensions), 2) Report the earnings as taxable income on your return, 3) Keep documentation of your calculation method. A $5-10 difference in calculation precision isn't going to trigger an audit - they're more concerned with people who don't correct excess contributions at all.

Quick tip: Download IRS Publication 519 (U.S. Tax Guide for Aliens). It has a detailed flowchart on page 8 that helps determine your status. Based on your arrival date, you're almost certainly a nonresident alien for 2024 tax purposes, which means Form 1040-NR. Also, most tax software struggles with nonresident returns. TurboTax and H&R Block can do it but you need their premium versions. Sprintax specializes in nonresident returns and might be easier.

Based on your situation (arriving September 15, 2024, with 107 days of US presence), you'll almost certainly need to file Form 1040-NR as a nonresident alien for 2024. The substantial presence test only counts days in the current tax year plus weighted days from previous years - since you have zero previous years, your 107 days falls well short of the 183-day threshold. However, don't overlook the "first-year choice" that Diego mentioned. If you'll be present for at least 75% of days from your first 31 consecutive days through December 31st, AND you expect to pass the substantial presence test in 2025 (which you likely will), you could elect to be treated as a resident alien for all of 2024. This would let you file Form 1040 instead, which often provides better tax benefits. Calculate both scenarios before deciding - sometimes the additional deductions and credits available on Form 1040 can save you more money than you'd think, even though you'd be taxed on worldwide income (though you probably don't have significant foreign income anyway). The key is getting this right from the start. As others have mentioned, filing the wrong form can lead to IRS notices and amended returns down the road.

Does anyone know if her getting food stamps might disqualify her from being claimed as a dependent? I have a similar situation with my mother-in-law who gets SNAP benefits.

One thing to keep in mind is documenting everything throughout the year, not just at tax time. I learned this the hard way when the IRS questioned my dependent claim for my disabled father. Keep receipts for utilities, groceries, medical expenses, transportation costs, and any other support you provide. Also calculate the fair market rental value of your aunt's home - you can look at similar rental properties in your area or get a rough estimate from online rental sites. This will help you prove you're providing more than 50% of her total support even when accounting for the housing she provides herself. Since you mentioned you've been doing this for 9 months, you should be in good shape for the support test. Just make sure to track everything from now until the end of the tax year so you have solid documentation if needed.

Your situation is actually quite common and you're being smart to think about this proactively. The fact that you specifically purchased a larger home to accommodate the Airbnb business is a strong indicator of profit motive that would help in any IRS review. A few thoughts on strengthening your position: 1. **Documentation is key** - Keep detailed records of time spent on the business (guest communication, cleaning, maintenance, marketing). This shows it's not a hobby. 2. **Your 40% allocation seems reasonable** if it's based on actual square footage used exclusively for the rental. Just make sure you have a simple floor plan or measurement documentation to support this. 3. **Consider showing some profit in 2025** - Even a small profit would help reset the "hobby loss" clock. Maybe slightly reduce some discretionary expenses or be more aggressive with pricing. 4. **Track improvement efforts** - Document any changes you make to increase profitability (pricing adjustments, marketing spend, property improvements). This shows business intent. The IRS knows rental properties can have legitimate losses, especially in the early years or during market downturns. Your repeated efforts and the fact that this isn't enjoyable work for you both support treating this as a business. Just keep good records and consider making 2025 a profitable year if possible.

Your situation definitely warrants careful attention, but you have several strong factors working in your favor. The intentional purchase of a larger home specifically for Airbnb use is excellent evidence of profit motive - this isn't someone who accidentally started renting out a spare room. A few additional strategies to consider: **Strengthen your business records:** - Create a simple business plan outlining your strategy for profitability - Document market research showing how you set rates and respond to competition - Keep receipts and photos of property improvements that enhance rental appeal **Consider operational changes:** - Analyze if you can optimize your pricing strategy (dynamic pricing tools, seasonal adjustments) - Track your occupancy rates and guest satisfaction scores as business metrics - Document any efforts to reduce operating costs while maintaining quality **Regarding your 40% allocation** - this is reasonable if based on actual exclusive-use space. Just ensure you can support it with measurements or floor plans. The reality is that many legitimate rental businesses show losses in early years, especially when factoring in depreciation. Your profits in 2018-2019 show this wasn't set up as a tax shelter, and the recent losses coincide with broader market challenges many hosts are facing. Consider making small adjustments to show even a modest profit in 2025 if possible - sometimes reducing discretionary expenses or being more aggressive with rates can make the difference between a small loss and small profit, which significantly strengthens your position.