I feel your frustration! I went through something similar with my state refund last year - it was stuck in "pending review" for 6 weeks with absolutely no communication from the state. What finally worked for me was filing a formal inquiry through my state's taxpayer advocate office. Most states have this service now (similar to the federal IRS Taxpayer Advocate). You can usually find the contact info on your state's department of revenue website under "taxpayer rights" or "taxpayer advocate." They have more authority to actually look into your case and get answers. In my situation, they discovered my return was flagged because I had moved states the previous year and it triggered an automatic review. Once the advocate got involved, my refund was released within 10 business days. It's worth noting that many states are still dealing with staffing shortages from the pandemic, which is why processing times are so unpredictable this year. Hang in there - your money will come through!

I'm going through the exact same thing right now! Filed my state return on February 28th and it's been stuck on "pending review" for over 3 weeks. What's really annoying is that my federal refund came through in just 10 days, so clearly there's nothing wrong with my information. I called my state's tax line last week and after being on hold for 45 minutes, the representative basically told me "reviews take as long as they take" and couldn't give me any timeline. It's so frustrating when you're expecting that money and they just leave you hanging with zero communication. Has anyone had luck with contacting their state representative's office about tax delays? I'm wondering if that might get more attention than the regular customer service channels.

Has anyone actually been audited by the IRS over a family loan with the wrong interest rate? I'm loaning my sister $30k and don't want to deal with all this AFR stuff but also don't want to get in trouble.

I went through this exact situation last year when I loaned my daughter $50,000 for her business. Here's what I learned from my tax attorney: For a 6-month loan, you definitely need the short-term AFR rate. Since you're getting paid back in one lump sum at the end, use the semi-annual compounding rate from the IRS Revenue Ruling published for the month you make the loan. The key thing everyone misses is that you MUST actually charge and collect the interest, not just put it on paper. I made the mistake of "forgiving" the interest at the end, and my CPA told me that could still trigger gift tax issues since I was essentially giving her the interest amount. Also, make sure your loan agreement includes a specific maturity date, not just "about 6 months." The IRS wants to see definite terms. I used a simple promissory note template but had it notarized just to be extra safe. One more tip: if your brother can't pay the full amount back at 6 months, don't just verbally extend it. You'll need to formally modify the loan agreement or it could look like you're just gifting money with extra steps.

Great question! I just went through this exact situation last year when I started my print-on-demand business. Here's what I learned: You're absolutely right that this makes you self-employed. The key thing to understand is that you'll need to file Schedule C (business income/expenses) and Schedule SE (self-employment tax) along with your regular 1040. Regarding PayPal and 1099-K forms - yes, both PayPal and TeePublic should send you 1099-K forms if you exceed $600 in transactions for the year. However, you're required to report ALL income regardless of whether you receive these forms or not. Here's my biggest tip: start keeping detailed records immediately! Track every penny of income and every business expense. Business expenses you can deduct include: - Design software subscriptions - Computer/equipment used for business - Portion of internet/phone bills - Marketing costs - Any business-related courses or books Also, set aside about 25-30% of your profits for taxes since nothing is being withheld automatically. You may need to make quarterly estimated tax payments if you expect to owe more than $1,000 in taxes. Consider using a simple accounting app like Wave (free) or QuickBooks Self-Employed to track everything. It makes tax time so much easier! Feel free to ask if you have more specific questions - happy to help a fellow entrepreneur!

Just wanted to add something that might help since I've been doing print-on-demand for about a year now - make sure you understand the difference between gross income and net profit when it comes to taxes! When TeePublic sends you that 1099-K, it will show your total sales (gross income), but you only pay taxes on your actual profit after expenses. So if you made $5,000 in sales but had $2,000 in legitimate business expenses, you only pay taxes on the $3,000 profit. This is why tracking expenses is so crucial - it can significantly reduce your tax burden. Don't forget about less obvious deductions like: - Packaging materials if you ship anything yourself - Photography equipment/props for product photos - Business cards or promotional materials - Even mileage if you drive to buy business supplies One more thing - consider getting an EIN (Employer Identification Number) from the IRS even if you're a sole proprietor. It's free and makes you look more professional when setting up business accounts. Plus some payment processors prefer it over using your SSN. Good luck with your clothing design business! The tax stuff seems overwhelming at first but gets easier once you establish good record-keeping habits.

This is exactly the kind of detailed guidance that's been missing from this discussion! Thank you for breaking down each code type with the specific treaty considerations. I'm particularly interested in your mention of Form 8833 for treaty elections. Could you elaborate on when this is required versus optional? I've seen some sources suggest it's only needed for certain treaty positions, while others seem to indicate it's always required when claiming treaty benefits. Also, regarding the separation of income categories for Form 1116 - how do you determine whether Canadian pension income falls into "passive" versus "general" income categories? I assume Old Age Security would be passive, but what about employer-sponsored pensions or RRSPs? One more question: you mentioned attaching a statement explaining treaty positions. Do you have any recommendations for what should be included in such a statement, or is there a specific format the IRS prefers? Your approach of consulting with a cross-border specialist seems like it was worth the investment given how much conflicting information is out there on these issues.

I've been dealing with NR4 forms for several years now and want to clarify some of the confusion in this thread. The conflicting advice you're seeing is actually pretty common with international tax issues because there are often multiple "correct" approaches depending on your specific situation. Here's what I've learned from my experience and consultations with tax professionals: **The key factor is the US-Canada Tax Treaty provisions, which can override normal US tax reporting rules.** For **Code 39 (Pension)**: The reporting depends on whether it's a private pension or government pension. Private pensions are generally fully taxable in the US and can go on Line 5a of Form 1040. Government pensions may qualify for treaty benefits under Article XIX. For **Code 44 (Old Age Security)**: This is specifically addressed in Article XVIII of the treaty. As a US resident, you include it in your US taxable income, but you may be able to claim treaty benefits if Canadian tax was withheld. For **Code 46 (Other Income)**: This typically goes on Schedule 1 as "Other Income" unless it fits into a more specific category. **Important:** Always file Form 1116 for foreign tax credits on any Canadian taxes withheld. The income categorization (passive vs. general) on Form 1116 is crucial for maximizing your foreign tax credit. One thing I haven't seen mentioned yet is that if you have significant Canadian income, you might also need to consider whether you meet the threshold for filing Form 8938 (FATCA) or FinCEN Form 114 (FBAR) depending on your other Canadian financial accounts. My recommendation: Start with the conservative approach (reporting everything as "Other Income" on Schedule 1) and then consider whether treaty elections might provide additional benefits. Document your positions clearly in case of IRS questions.

One thing to keep in mind is that if you're flying frequently for board meetings, consider whether the nonprofit might be able to offer partial reimbursement or if they have any corporate travel partnerships that could reduce your costs. Some nonprofits have arrangements with airlines or hotels that volunteers can use. Also, be aware that if you combine any personal activities with these trips (like visiting friends or extending your stay for leisure), you'll need to allocate expenses appropriately. Only the portion directly related to the nonprofit work is deductible. The IRS is pretty strict about this - if you extend a 1-day meeting into a 3-day trip for personal reasons, you can't deduct the extra hotel nights or meals. For record-keeping, I'd suggest creating a simple spreadsheet for each trip with dates, purpose, expenses, and any reimbursements received. This makes it much easier when tax time comes around and helps demonstrate the business purpose if your return is ever questioned.

Great question! I went through a similar situation when I moved across the country but stayed on my nonprofit board. You're absolutely right that these can be deductible as charitable contributions. A few additional tips from my experience: 1. **Keep a travel log** - I created a simple document for each trip noting the departure/return times, meeting duration, and business purpose. This really helped when organizing my tax documents. 2. **Consider timing strategy** - If you have flexibility, try to cluster multiple board activities into single trips when possible (like board meeting + committee meeting). This can make your travel more cost-effective while maintaining full deductibility. 3. **Save boarding passes and meeting materials** - I keep digital copies of my boarding passes and meeting agendas together in one folder. It creates a clear paper trail showing the business purpose and timing of each trip. 4. **Ask about virtual options** - While not always possible for all meetings, see if the board offers hybrid attendance for some meetings. This can help reduce your overall travel costs while still maintaining your board engagement. The documentation you're already keeping (receipts, etc.) sounds like you're on the right track. Just make sure the nonprofit can provide their 501(c)(3) determination letter if needed for your records.