Something nobody's mentioned yet - if you're teaching regular classes, you might actually have BOTH self-employment income (the nanny work) AND employee income (the teaching) depending on how the community center classifies you. Check if they're giving you a W-2 or 1099. This matters because you calculate self-employment tax only on the self-employment portion. If you're getting a W-2 for teaching, they're already withholding Social Security and Medicare taxes for that portion of your income.

Great question about LLC vs sole proprietor! As someone who's been running a small tutoring business for 3 years, I can share what I've learned. From a tax perspective, a single-member LLC doesn't give you any additional deductions compared to sole proprietorship - you'll still file Schedule C either way. The real benefit of an LLC is liability protection, which might be worth considering since you're working with children and driving them around. If there's ever an accident or incident, an LLC can help protect your personal assets. For your vehicle expenses with that much business use, definitely keep detailed mileage logs. I use a simple notebook in my car and jot down the odometer reading, destination, and purpose for every business trip. The standard mileage rate is usually easier than tracking actual expenses, but run both calculations to see which gives you a bigger deduction. One thing I wish someone had told me earlier - make sure you're setting aside 25-30% of your self-employment income for taxes, including self-employment tax. It hits harder than expected if you're not prepared!

Just wondering - has anyone used any specific tax software that handles this S-Corp/SMLLC situation particularly well? I'm using ProSeries but finding it clunky for this specific scenario.

This is a great discussion! I'd like to add a practical consideration that might help with your documentation. When you issue the K-1s to the individuals (which is correct as others have confirmed), make sure to keep clear records showing the SMLLC ownership structure in your corporate books. I recommend creating a simple ownership chart that shows: Individual → owns SMLLC → SMLLC owns S-Corp shares. This helps during audits or when new accountants take over the file. Also, consider having each individual sign an acknowledgment that they understand they're receiving the K-1 as the beneficial owner behind their SMLLC. One more thing - if any of these SMLLCs later elect to be taxed as corporations (Form 8832), that would immediately terminate your S-Corp election since corporations can't be S-Corp shareholders. Make sure your clients understand this risk before making any future elections with their SMLLCs.

Make sure you're also aware of the credit limitations! I made a mistake with this last year. You can't claim both the Lifetime Learning Credit AND the American Opportunity Credit for the SAME student in the SAME year. You have to pick one. For most people who qualify for both, the American Opportunity Credit is usually better because the maximum credit is $2,500 compared to $2,000 for the Lifetime Learning Credit. But as others mentioned, AOTC is only for the first 4 years of post-secondary education.

I went through this exact situation two years ago! As an F-1 student who became a resident alien for tax purposes, you're absolutely eligible for education credits. The key thing to understand is that once you pass the substantial presence test (which you clearly have after being here since 2016), your visa status doesn't matter for most tax benefits - you're treated just like a US citizen. Since you're in your 7th year, you'll likely need to go with the Lifetime Learning Credit rather than the American Opportunity Credit. The LLC covers up to $2,000 per year (20% of the first $10,000 in qualified expenses) and there's no limit on how many years you can claim it. One thing I wish I had known earlier - make sure you're only claiming qualified tuition and required fees from your 1098-T. Don't include things like room and board, health fees, or parking fees as those aren't eligible expenses. Also, if you received any scholarships or grants, you'll need to subtract those from your qualified expenses. The income limits are definitely something to watch out for too. As a single filer, the credit starts phasing out at $80,000 MAGI and completely disappears at $90,000. But if you're a typical student, you're probably well below those thresholds. My advice? Go ahead and claim it if you qualify - you've been paying into the system as a resident alien, so you deserve the same benefits!

This is a great question that comes up more often than you'd think! I dealt with a similar situation when I received some American Gold Eagles as payment for freelance work. The key thing to understand is that the IRS treats this as a barter transaction, and you absolutely must report the fair market value, not the face value. For your $20 Liberty coins, you'll need to determine their current market value based on gold content plus any numismatic (collector) premium. Check recent sales on reputable dealer sites or get quotes from local coin dealers. Document this valuation process - save screenshots of prices or get written quotes, because you'll want backup if the IRS ever questions your reported value. One thing to be careful about: don't just use the "melt value" (pure gold content value). Liberty coins, especially if they're in good condition, often trade for more than their gold content due to their collectible nature. Make sure you're capturing the full fair market value that someone would actually pay for those specific coins in their current condition. Also remember that this establishes your cost basis in the coins for when you eventually sell them - another reason to document the valuation carefully now!

Just to add another perspective - I work as a tax preparer and see this situation occasionally. The fair market value reporting is absolutely correct, but I want to emphasize something that hasn't been mentioned much: make sure you're also considering any 1099 reporting requirements. If the person who paid you with gold coins is a business and this payment was over $600, they should be issuing you a 1099-NEC for the fair market value of those coins. If they don't, you still need to report the income, but it's worth following up with them about proper reporting on their end too. Also, depending on your state, there may be additional sales tax implications when gold coins change hands as payment for services. Some states treat this differently than a straight precious metals purchase. Worth checking your local tax rules or asking a local tax professional familiar with your state's laws. The documentation advice others have given is spot-on - treat this like you would any other asset valuation for tax purposes. Contemporary market evidence is your best friend if the IRS ever has questions.

3 Don't forget about state tax forms too! I made the mistake of only worrying about federal forms and completely missed that I needed a specific form from my previous state after moving mid-year. Each state has different requirements. If you moved between states, make sure you check both states' tax department websites for any forms you might need. Many states also have online systems where you can create an account and see your tax information directly.

11 Something nobody mentioned yet - if you had health insurance through the marketplace (Obamacare), make sure you get your Form 1095-A. Unlike most other forms, you actually NEED this one to file if you received any premium tax credits. They don't just mail it automatically - you need to log into your healthcare.gov account (or state exchange) to download it. I missed this form last year and had to file an extension because you literally cannot calculate your taxes correctly without it if you got subsidies.