This happened at every restaurant I've worked at. The worst part is when tax time comes and the IRS thinks you made WAY more than you actually did! Has anyone successfully gotten this fixed retroactively? Like for previous tax years?

Wow, this is exactly what happened to me at my last restaurant job! I worked at a busy pizza place with tip pooling and couldn't figure out why my paychecks seemed so small compared to what I thought I was earning. Turns out they were doing the same thing - taxing me on the full tip amount before distribution. What really helped me was keeping my own daily records of tips received vs. tips actually taken home after the pool split. I started writing down the totals each shift so I had documentation when I eventually confronted management about it. The frustrating part is how common this seems to be across the industry. Makes me wonder how many servers are overpaying taxes without even realizing it. Definitely bring this up with your owner when they come in - having concrete numbers from your pay stubs will make a huge difference in getting this fixed.

Quick question related to this - if the OP is getting 1099s from both contract work and ticket sales, does he need to file two separate Schedule Cs or can they be combined since they're both independent contractor type income?

Great thread with lots of helpful info! As someone who's been navigating 1099 contractor taxes for a few years now, I'll add a couple practical tips that might help: For your business exploration expenses - definitely keep detailed records showing your profit motive. I learned this the hard way when I got questioned about some photography equipment purchases. What helped me was creating a simple business journal documenting my activities: dates I worked on the business, what I did, expenses incurred, and income generated. Even failed attempts count if you can show genuine business intent. One thing I wish someone had told me earlier: if you're testing multiple business ideas, consider whether some of them might actually qualify as research and development expenses rather than just business expenses. The tax treatment can sometimes be more favorable. For the ticket reselling - definitely agree with the separate Schedule C advice. I made the mistake of lumping different income streams together my first year and it was a nightmare to untangle. Keep meticulous records of every ticket purchase with the intent to resell, even if you end up using some personally. Also, don't forget about the quarterly estimated tax payments if you're making decent money from both activities. Getting behind on those can be painful come April!

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.