I'm in my 3rd year as an agent and I don't even bother with the clothing deductions anymore. Focus on the big stuff instead: - Mileage (huge deduction, track EVERY showing) - Home office (if you have dedicated space) - Marketing (social media ads, flyers, photography) - Continuing education - E&O insurance - Desk fees - Technology (portion of phone, laptop, internet) These add up to WAY more than dry cleaning ever would, and they're all clearly allowed. Why risk an audit over dry cleaning when there are so many legitimate deductions available?

Great thread everyone! As someone who's been in real estate for about 5 years now, I can confirm what others have said - skip the dry cleaning deduction and focus on the big ones that actually matter. I learned this the hard way my first year when I spent hours trying to justify clothing expenses, only to have my CPA tell me it wasn't worth the risk. Now I focus on tracking: - Every single mile driven for business (this alone saved me about $4,000 last year) - All my marketing expenses including professional photos for listings - My MLS fees, lockbox fees, and board dues - Portion of my cell phone and internet since I use them for business - Business meals with clients (50% deductible) The mileage tracking especially adds up fast when you're showing properties all over town. I use an app that automatically tracks my trips and I just mark which ones were business-related at the end of each day. Don't get hung up on the small stuff like dry cleaning - there are so many legitimate deductions available to real estate agents that you'll easily make up for it with the safer options.

This is exactly the kind of confusion that happens when you're new to having employees! The good news is that since you only paid $270 for what sounds like a one-time gig, you're likely in a much simpler situation than you think. Based on what you've described - paying someone to help with your side business for a short period - this really sounds like independent contractor work rather than traditional employment. If you didn't control how or when they did the work and just paid them for completing a task, that's typically contractor territory. Since contractors only require a 1099-NEC if you pay them $600 or more in a year, your $270 payment probably doesn't trigger any federal filing requirements at all. No Form 941, no Form 944, no Form 940 - just keep the receipt as a business expense. However, if you're certain they were an employee (you controlled their work schedule, provided tools, etc.), then Ashley's advice about Form 944 vs 941 is spot-on. But honestly, I'd recommend taking a step back and really evaluating whether this was employee vs contractor work first. It could save you a lot of paperwork!

This thread has been super helpful for understanding the contractor vs employee distinction! As someone who's also navigating small business employment issues for the first time, I wanted to add that even if Miguel's situation turns out to be contractor work (which seems likely given the one-time nature and $270 amount), it's still worth understanding these Form 941/944 rules for future reference. One thing I learned recently is that the IRS has some really good resources on their website about worker classification - Publication 15-A has detailed examples that can help determine if someone is an employee or contractor. The "behavioral control," "financial control," and "relationship type" tests they outline are pretty straightforward once you understand them. Also, for anyone else reading this thread, state requirements can be different from federal ones. Some states have stricter rules about worker classification or lower thresholds for various tax filings, so it's always worth checking your specific state's requirements even if you're clear on the federal side. Miguel, definitely sounds like you're probably dealing with a contractor situation and can skip all the payroll tax headaches, but keeping good records of that $270 payment is still important for your business expense deductions!

this whole thread has me confused even more lol. so if i make $5,000 i dont pay taxes but if i make $20,000 i only pay taxes on the amount over the standard deduction???? the government makes this way too complicated on purpose i swear

Just wanted to add something that might help other newcomers understand this better - the reason tax brackets start at $0 isn't because everyone pays taxes on their first dollar earned, but because the brackets describe how ANY taxable income gets taxed once you actually HAVE taxable income. Think of it like this: the standard deduction ($14,600) acts like a shield that protects your first chunk of income from taxes. Only income above that shield becomes "taxable income" that gets run through the tax brackets. So Connor, with your $5,000 income, your shield (standard deduction) completely covers it, so you have $0 taxable income. Someone making $25,000 would have $10,400 in taxable income ($25,000 - $14,600), and that $10,400 would be taxed at the 10% bracket rate. The system is actually designed to be progressive - it protects lower earners while ensuring higher earners contribute more. Hope this helps clarify the confusion!

I made the switch from a big bank to a credit union about two years ago and it was one of the best financial decisions I've made. While I didn't go with AA FCU specifically (I joined a local teacher's credit union), the experience has been night and day compared to dealing with Wells Fargo. The biggest difference for me has been the personal service - when I call, I talk to actual humans who seem to care about helping rather than just trying to upsell me on products I don't need. My loan rates have been significantly better too. Got my auto loan at 3.2% when the bank was quoting me over 5%. One thing to consider is that credit unions often have reciprocal agreements with each other, so even if AA FCU doesn't have a branch exactly where you need it, you might still be able to do banking at other credit union locations. Definitely worth looking into their shared branching network. Good luck with whatever you decide! Getting away from those monthly fees alone will probably save you hundreds per year.

I've been with American Airlines FCU for about 2 years now and can definitely echo what others have said about the customer service being excellent. What really sold me was their relationship with the Co-op shared branching network that someone mentioned - you can actually do most banking transactions at over 5,000 credit union locations nationwide, not just ATMs. This has been super helpful when I'm traveling for work. Regarding membership eligibility, I'd definitely call them directly to verify since the contractor relationship can be tricky. When I applied, they were pretty thorough about verifying employment but the process was straightforward once they confirmed I qualified. One thing I haven't seen mentioned yet is their financial counseling services - they offer free consultations if you're looking to improve your overall financial picture, which has been really helpful for budgeting and planning major purchases. It's a nice perk that most traditional banks don't offer without trying to sell you investment products. The mobile deposit limits are reasonable (I think it's $2,500 per day for new members, higher once you're established), and I've never had issues with deposits being held longer than necessary like I experienced with my previous bank.

Does anyone know if we're supposed to include copies of our I-20 or passport with Form 8843? My DSO gave me conflicting info on this.

As someone who went through this exact same confusion a few years ago, I completely understand your stress! Let me add a few practical tips that might help: First, don't panic about the previous years - the IRS is generally understanding about Form 8843 filing delays when there's no tax owed. I filed mine for 3 previous years all at once and never heard anything back from them. For your current situation, since you mentioned you don't have any US income, you'll only need Form 8843 (not Form 1040NR). Make sure to check the "student" box in Part II and fill out the dates you were present in the US during the tax year. One thing that caught me off guard - if you traveled outside the US during the year (even briefly), you need to list those departure and return dates. Keep your passport handy when filling out the form. Also, since you mentioned visa status concerns - filing Form 8843 actually helps protect your status by formally documenting that you're claiming the student exemption from the substantial presence test. It's better to file late than never! The Austin, TX address mentioned earlier is correct for mailing. I'd definitely recommend certified mail with tracking so you have proof it was sent and received.