Don't forget about state taxes! This is a huge gotcha that hit me hard. The federal stuff with foreign income is complicated enough, but some states don't follow the same foreign income exclusions or tax treaty provisions as the feds. I moved from California to Texas partly because of this - California wanted to tax my foreign income even when it was excluded federally. Check your state's rules carefully! Also, keep track of EXACTLY which days you work and from where. If you travel at all while doing this contract work, it can affect tax liability in multiple jurisdictions.

What software are you all using to track expenses and prepare for taxes with international clients? I've been using Excel and it's becoming a nightmare, especially with currency conversions. Last year I had clients in Canada, UK and Australia and I think I messed up my conversion rates.

Based on my experience working with tax clients, what you're experiencing is likely an ACH processing delay. The Treasury Financial Management Service (FMS) initiates the ACH transaction, but it must pass through the Federal Reserve's processing system before reaching your financial institution. This typically takes 24-48 hours after your DDD, but can extend to 5 business days during peak tax season without indicating any problem. If your bank isn't showing a pending deposit by day 5 post-DDD, that's when you should request a payment trace through the IRS.

I'm going through the exact same thing right now! My transcript shows the 846 code with today's date, and I've been refreshing my banking app every hour like it's going to magically appear. It's so frustrating when you're counting on that money. From what I'm reading here, it sounds like this delay is more common than the IRS lets on. I think I'm going to give it until Monday before I start panicking - thanks everyone for sharing your experiences, it really helps to know I'm not alone in this!

Has anyone actually received a 1099 from Airbnb for hosting? I've been hosting for 3 years and never got one, even though I made well over the threshold amount.

This is a complex situation that touches on several different tax issues for new permanent residents. Let me break down the key points: **Immediate Action Items:** 1. **File FBAR immediately** - As mentioned by others, you're required to file FinCEN Form 114 for any year your foreign accounts exceeded $10,000. The deadline was October 15th, but you can still file late. Consider the IRS Streamlined Filing Compliance Procedures if you weren't aware of this requirement. 2. **Amend your 2023 return** - Your tax preparer's advice was likely incorrect. Even if you're just passing through income, the IRS typically views the person receiving the payments as having constructive receipt of the income. You'll need to report the Airbnb income and then potentially claim offsetting deductions for amounts transferred to your father. **Going Forward:** - Definitely switch the Airbnb payouts directly to your father's account - Keep meticulous records of all transfers and your management arrangement - Consider formalizing your arrangement with a written property management agreement **The W-9 Dilemma:** If Airbnb insists on the W-9, you may have to comply since you're the account holder. This will likely trigger a 1099-K being sent to both you and the IRS, making it even more important that you properly report this income on your amended return. Given the complexity with international tax obligations, FBAR requirements, and potential penalties, I'd strongly recommend consulting with a tax professional who specializes in international taxation for permanent residents. The cost of proper advice now will be much less than potential IRS penalties later.

I work with tax transcripts regularly, and I can clarify that the normal sequence for an offset is: 826 code (offset applied) → 971 code (notice issued) → 5-14 day processing period → 846 code (remaining refund issued). The exact timing depends on which cycle your return is processed in. Returns are processed in 7-day cycles, and each taxpayer is assigned to a specific cycle. Based on current processing times, you should see your 846 code within exactly 14 days of the 826 code appearing, assuming there are no other issues with your return. I'd start getting concerned only if you don't see the 846 by day 21.

Thanks everyone for sharing your experiences! This is really helpful. I'm on day 5 since my 826 code appeared, so it sounds like I'm still well within the normal timeframe. @Ali Anderson - that 14-day timeline is exactly what I was looking for. I'll mark my calendar and try to be patient instead of checking my transcript every day (which is honestly what I've been doing). It's reassuring to know that seeing the 826 and 971 codes together actually means things are moving forward, not that something went wrong. I'll update this thread when my 846 code appears in case it helps anyone else going through the same thing.

Just an FYI - i made the mistake of just ignoring my quarterly payments one year thinking the penalty wouldn't be that bad. Big mistake! ended up owing about $1,200 in penalties and interest on top of my taxes. they calculate it daily so it really adds up.

I'm dealing with a similar situation right now and wanted to share what I've learned from my tax preparer. One thing that might help with your anxiety is knowing that the IRS has a "reasonable cause" exception for penalty relief when you have unexpected medical expenses. You'll need to document everything - medical bills, insurance statements, etc. - but it's worth keeping track of this stuff as you go. For your irregular musician income, consider setting aside a percentage of each gig payment into a separate "tax account" rather than trying to predict your total yearly income. Even if it's just 20-25% of each payment, it'll help you build up funds for those quarterly payments without the stress of trying to come up with large lump sums. Also, don't forget that you can deduct unreimbursed medical expenses that exceed 7.5% of your AGI, plus all your business expenses as a musician (equipment, travel, etc.). Sometimes people in tight financial situations overlook deductions that could significantly reduce what they actually owe. Hang in there - this stuff is stressful but there are definitely options to work with the IRS rather than just hoping for the best!