I'm confused about one thing... when calculating the employer portion for a sole proprietor (Schedule C), is it actually 20% of net profit or is it 25% of (net profit - half SE tax)? I've seen both formulas used in different places and now I don't know which is correct.

This is such a helpful thread! I'm in a similar situation as a freelance writer making around $55k. One thing I learned the hard way is to also consider the timing of your contributions throughout the year. Since we don't have regular paychecks like W-2 employees, it's easy to wait until the end of the year to make a big lump sum contribution. But I found it's actually better to make quarterly estimated contributions to my solo 401(k) to smooth out cash flow and take advantage of dollar-cost averaging. Also, don't forget that you can make contributions up until the tax filing deadline (plus extensions) for the previous year. So you have until April 15th, 2025 to make 2024 contributions, which gives you some flexibility if you're still figuring out your exact numbers. One more tip - keep detailed records of all your contributions and the calculations you used. The IRS can ask for documentation years later, and having everything organized from the start will save you major headaches down the road.

This is why our tax code is so messed up. An EV battery providing power to a house is functionally identical to a Powerwall doing the same thing. But one gets a tax credit and one doesn't because of some arbitrary distinction about "primary purpose." Meanwhile the electrical grid gets the same benefit either way! Politicians talk about wanting to encourage clean energy adoption but then create these convoluted rules that just confuse everyone. Ugh.

Based on what I've seen from following similar cases, the IRS has been pretty consistent about denying these claims for EVs, even ones with impressive bi-directional capabilities. The "primary purpose" test isn't really about how you use it day-to-day, but about what the manufacturer designed and marketed it for. That said, I'd suggest documenting everything about your home integration setup - the equipment you purchased specifically for home connection, any monitoring systems showing energy flow patterns, utility company agreements if you're selling power back to the grid. Even if you can't claim the residential energy credit, this documentation might be useful for other incentives or if the rules change in the future. Also worth checking if your utility company offers any rebates or time-of-use rate programs for customers with bi-directional EV charging. Sometimes the utility incentives can be more valuable than the federal tax credits anyway, and they don't have the same "primary purpose" restrictions.

Has anyone noticed that sometimes the same deduction appears under different acronyms depending on the payroll system? At my old job SIT meant State Income Tax but at my new company they use STW (State Tax Withholding) for the exact same thing. Super confusing when trying to compare paychecks!

This is so relatable! I just went through this exact same thing when I started a new job. For $95 in deductions on a $1350 biweekly paycheck, that's actually around 7% which seems reasonable, but definitely verify what each one is. One thing that helped me was creating a simple spreadsheet to track each deduction code with its meaning and amount. That way when the next paycheck came, I could quickly spot any changes. Also, don't feel embarrassed about asking HR - it's literally their job to explain this stuff to you, and most people don't understand payroll acronyms without help. If your company has a benefits portal or employee self-service website, sometimes there's a payroll glossary buried in there somewhere. Worth checking before having that potentially awkward conversation with HR!

One more thing - even if you don't get any form from your employer documenting the gift card, you're still legally required to report it as income. The IRS considers all prizes and awards as taxable income unless they're very specific exceptions (which a workplace raffle isn't).

Hey Micah! I went through something similar last year with a raffle prize at work. The key thing is to check your most recent paystub after you won the gift card - many employers will automatically include the value as taxable income and withhold taxes right away. If you see an extra $300 (or close to it after taxes) on your paystub labeled as "bonus," "other compensation," or something similar, then your employer already handled it and it will show up on your W-2. In that case, you're all set! If it's not on your paystub and you don't receive a 1099-MISC by early February, you'll need to report it as "Other Income" on Schedule 1, Line 8z. Just write something like "workplace raffle prize - $300" next to it. Either way, you'll pay regular income tax on it based on your tax bracket. So if you're in the 22% bracket, you'd owe about $66 in federal taxes on that $300. Good luck with your first solo tax filing!

I know this is a bit off-topic, but make sure you're also checking if you need to file an FBAR (FinCEN Form 114) if your US financial accounts exceeded $10,000 at any point during the year. That requirement is separate from income tax filing and applies to many non-residents with US accounts regardless of whether you owe any tax.

I went through this exact situation two years ago and can confirm what others have said about the 183-day rule. Since you had zero days of US presence, your capital gains from stock sales are not subject to US taxation as a non-resident alien. However, I'd strongly recommend keeping detailed records of your physical presence (or lack thereof) in the US. I maintained a simple spreadsheet with dates, locations, and even flight records showing I never entered the US that tax year. This documentation proved invaluable when I later had questions about my filing position. One thing to consider: if you had any taxes withheld at source on dividends or other income during the year, filing a 1040NR might actually get you a refund. But for pure capital gains with no US presence, you're correct that filing isn't required. Just make sure you understand the distinction between different types of income from your brokerage account.