Bit of a related question - has anyone successfully deducted home office expenses for their payment app income? I use a dedicated room in my apartment exclusively for the graphic design work that I get paid for through Venmo, but I'm not sure if it's worth the hassle or if it increases audit risk.

As someone who dealt with this exact situation last year, I want to emphasize something that might not be obvious - make sure you're distinguishing between gross receipts and actual taxable income when you report on Schedule C. For example, if you received $9,500 through payment apps but $1,200 of that was reimbursements from clients for materials you purchased for their projects, you'd only report $8,300 as gross receipts (assuming you're also deducting those material costs as business expenses). Also, don't forget about quarterly estimated tax payments for next year if your side gig income continues. Since payment apps don't withhold taxes like employers do, you might owe penalties if you end up owing more than $1,000 when you file. The IRS expects you to pay as you go, not just at year-end. One more tip: If you're using TurboTax, when you get to the Schedule C section, it will ask about your business code. For graphic design work, you'll want to use NAICS code 541430 (Graphic Design Services). This helps ensure your return is processed correctly and your deductions align with what the IRS expects for your type of business.

I believe what might be happening here is possibly related to Republic Bank's refund transfer product, which sometimes defaults to paper check delivery if certain conditions aren't met. In my experience last tax season, there are a few things that could have potentially triggered this switch: 1. If you perhaps opted to have your preparation fees deducted from your refund, this generally requires using their transfer product 2. If your banking information possibly didn't pass their verification process 3. If there was maybe a discrepancy between the name on your tax return and your bank account It's somewhat frustrating, but generally speaking, once they print the check, you should typically receive it within 5-7 business days, depending on your location and mail service efficiency.

This is such a frustrating experience that seems way too common with Republic Bank! I went through something similar last year where I was absolutely certain I selected direct deposit, but ended up with a paper check that took forever to arrive. What really helped me was calling the IRS directly (yes, the dreaded hold time) to get my actual transcript and see exactly what codes were showing up. Turns out there was a mismatch between my bank account name and my tax return name that triggered the switch to paper check. The IRS rep was actually able to explain exactly why it happened, which Republic Bank never bothered to do. For next year, I'm double and triple checking every field during e-filing to avoid this headache again!

One thing I haven't seen mentioned yet - your aunt and uncle should consider filing IRS Form 911 (Taxpayer Advocate Service) along with their OIC application. My parents were in a similar situation (though they were in Canada, not deported) and the Taxpayer Advocate really helped navigate the unique circumstances. The Taxpayer Advocate Service can sometimes intervene when there are special circumstances like being unable to return to the US due to immigration issues. They have more flexibility than regular IRS agents to consider unique situations. Also, make sure to emphasize in the OIC application that your aunt and uncle CANNOT return to the US to earn income to pay the debt. That "economic hardship" angle can be persuasive in these cases.

Don't forget about the implications for future immigration status! When my cousin applied for reentry after a deportation, the immigration officers specifically looked at whether he had resolved his tax issues. Make sure your aunt and uncle understand that handling this tax debt properly now (even if through an OIC) could impact their ability to return to the US later. Unresolved tax debt can be considered in immigration proceedings as a negative factor. I'd strongly suggest consulting with both a tax professional AND an immigration attorney since these issues are intertwined. The approach to the OIC could have implications for the pending U-visa application.

Does anyone know if having tax topic 152 means you're definitely getting a refund? Or can they still deny it at this stage? This is my first time seeing this code and I'm not sure if I should be relieved or still worried, haha. Also, does checking WMR multiple times a day slow down processing? (Asking for a friend... who might be me 😅

Tax Topic 152 is actually a good sign - it means the IRS has accepted your return and it's moving through their system. You're definitely getting your refund, it's just a matter of when. I've been through this several times and checking WMR constantly doesn't affect processing speed (though it might affect your sanity!). The IRS updates their systems overnight, usually between midnight and 6am, so checking once daily in the morning is plenty. Since you filed 3 weeks ago, you should see movement soon - most returns with Topic 152 get their DDD within 21 days of filing. Hang in there!

Make sure you're considering the "tie-breaker" rules in Article 4(2) of the treaty! As a dual citizen, these determine where your tax residency is primarily located for treaty purposes. Also, are you reporting your income properly in NZ? I think they call it "schedular payments" for contractor income there, which has its own rules.

This is exactly the kind of confusing situation that kept me up at night when I first moved to NZ as a contractor! The treaty language is genuinely difficult to parse, but here's what I've learned after going through this myself: You're correct that as a US citizen, you can't escape US tax obligations regardless of the treaty - that saving clause in Article 1(3) is ironclad. However, you have several strategies to minimize double taxation: 1. **Foreign Earned Income Exclusion (Form 2555)**: Since you're living in NZ full-time, you likely qualify to exclude up to $120,000 of your 1099 income from US taxation. This is often better than relying on foreign tax credits. 2. **Totalization Agreement**: Apply for a Certificate of Coverage from NZ's Ministry of Social Development to potentially avoid US self-employment taxes (15.3%) since you're contributing to NZ's social security system. 3. **NZ Tax Planning**: In NZ, your US contractor income is foreign-sourced income. Make sure you're handling the schedular payment requirements correctly - the IRD has specific rules for this. The key is layering these strategies properly. I'd recommend tackling the FEIE first since it's the most straightforward, then working on the totalization agreement for SE tax relief. Don't try to rely solely on the treaty provisions - they're mostly neutered by the saving clause for US citizens.