Crazy how similar our situations are! I graduated May 2023, got a job in June making about $58k, and moved out in July. I couldn't be claimed because: 1) I made too much $ to be a qualifying relative 2) I provided more than half my own support for the year (calculated all expenses) Benefits I got from filing independently: - Claimed standard deduction ($13,850 for 2023) - Got partial American Opportunity Credit for the portion of tuition I paid - Earned Income Credit Do the calculation on total support for the year. Add ALL expenses (tuition, rent, food, medical, utilities, etc.) then figure out who paid more than half.

Important point nobody mentioned - even if you determine your mom can't claim you as a dependent, you need to coordinate with her before filing. If she incorrectly claims you and you also claim yourself, both returns will get flagged and processed manually, delaying any refund by months. Make sure to talk to her BEFORE either of you file. You don't want to be in a situation where the IRS has to sort it out.

Yes, you likely can deduct the full cost of your business equipment purchased in 2023! The IRS provides two main options for this: 1. **Section 179 Deduction** - This allows you to deduct the full purchase price of qualifying equipment in the year you bought it (rather than depreciating it over several years). For 2023, the limit is $1,160,000, which should easily cover your heat presses, label printer, vinyl cutter, and computer. 2. **Bonus Depreciation** - For 2023, 80% bonus depreciation is available for qualified business assets, which would cover your equipment. To qualify for these deductions: - The equipment must be used for business purposes more than 50% of the time - The equipment must be put into service during the 2023 tax year When filing: - You'll need to complete Form 4562 (Depreciation and Amortization) - Keep detailed records of all purchases including receipts, dates, and business use Since you're a new business owner, I'd recommend consulting with a tax professional who can help ensure you're maximizing your deductions correctly based on your specific business situation. They can also help determine which method (Section 179 or bonus depreciation) would be most advantageous for your circumstances.

Great advice from Lena! I'd like to add a few important considerations for your 2023 equipment purchases: **Keep meticulous records** - Make sure you have receipts, invoices, and can document when each piece of equipment was "placed in service" (actually used for business). The IRS is strict about this. **Mixed-use items** - If you use that computer for both business and personal purposes, you can only deduct the business percentage. Keep a log of business vs. personal use. **State tax implications** - While federal tax allows these deductions, check your state's rules as they may differ from federal Section 179 or bonus depreciation rules. **Consider timing** - Since you're asking in 2025 about 2023 purchases, if you haven't filed your 2023 return yet, you still have time to claim these deductions. If you already filed without claiming them, you might need to file an amended return (Form 1040X). **Alternative Minimum Tax (AMT)** - For very large deductions, there could be AMT implications, though this is less common for small businesses. The equipment you mentioned (heat presses, vinyl cutter, label printer) sounds like a custom printing or embroidery business - these are definitely legitimate business assets that should qualify for the full deduction!

I'm kinda shocked nobody's mentioned that Oregon has its own witholding form too (OR W-4). If you're only adjusting your federal W-4, you're missing half the equation. Oregon's state tax rates are pretty high (up to 9.9%!) and that might explain why your state refund was smaller than expected last time. You should check if your employer has you fill out a separate Oregon withholding form or if they just use your federal W-4 settings for state witholding too. Could make a big difference!

This is such great advice about the Oregon W-4! I honestly had no idea there was a separate state form. I just filled out the federal W-4 when I got hired and assumed that covered everything. Looking at my paystub now, I can see they're taking out Oregon state tax, but I have no clue what rate or how it was calculated. I'm going to check with HR tomorrow to see if I need to fill out a separate Oregon form. Oregon's tax rates being up to 9.9% is pretty scary - that could definitely explain why my state refund was so much smaller than I expected. Between potentially higher federal rates if TCJA expires AND making sure my Oregon withholding is right, I feel like I have a lot more to figure out than I thought! Thanks for pointing this out - I probably would have just focused on federal and gotten another surprise next year.

there's a guy on youtube who actyally did this. he moved to portugal because they had a 0% tax on crypto at the time (i think they changed it now). but he had to actually MOVE there, get residency, wait the required time, and then he could sell tax free. but he also kept his US citizenship which means he still had to file US taxes even tho he didn't have to pay portugese taxes. im pretty sure he used the foreign tax credit but since portugal wasn't charging him tax he couldn't offset much of the US tax. so tl;dr: it doesn't work like you think unless you also give up your US citizenship which is a whole other expensive mess.

This is a fascinating discussion that really highlights how complex international tax planning can be! As someone who's been researching this exact topic for my own situation, I wanted to add a few key points that might help others: The "exit tax" mentioned earlier is really the biggest gotcha here. Even if you renounce citizenship, if you meet certain wealth thresholds, you're treated as if you sold all your assets on the day before expatriation - so you'd pay capital gains on unrealized gains anyway. Also, there's something called the "covered expatriate" rules that can create ongoing tax consequences for your US citizen family members if they inherit from you later. The IRS really has thought through these loopholes extensively. For those considering legitimate long-term relocation (not just tax avoidance), it's worth noting that many countries with favorable tax rates are also making their programs more restrictive. Portugal changed their crypto rules, Malta has tightened up their residency requirements, and several Caribbean nations have raised their investment thresholds. The reality is that for most people, the costs and complexity of truly relocating internationally far outweigh the tax savings unless you're dealing with very substantial amounts. Sometimes the best strategy is just proper tax planning within the US system.

Don't overthink this. I've been sports betting for years and here's my simple approach: 1. Track all deposits into betting accounts 2. Track all withdrawals from betting accounts 3. At end of year: if withdrawals > deposits = report the difference as gambling income 4. If deposits > withdrawals = potential gambling loss (deductible if itemizing) The IRS doesn't care about individual bets, bonus money, etc. They just want net numbers. Unless you're winning so much you're getting W-2Gs, this method keeps it simple and accurate.

I've been dealing with this exact situation and want to share what I learned after consulting with a tax professional. The key thing to understand is that bonus money creates a timing issue for tax reporting. When you receive a $65 bonus with wagering requirements, that bonus isn't taxable income yet because you can't actually access it. However, once you meet those requirements and the money becomes withdrawable, ANY amount you can withdraw (including the original bonus) becomes taxable income at that point. So in your example, if you complete the $130 wagering requirement and end up with $80 withdrawable (your $65 deposit + $15 net win from the bonus), you'd report $15 as gambling income. If you had won more and could withdraw $150 total, you'd report $85 as income ($150 - $65 original deposit). The tricky part is keeping detailed records of when bonuses become unlocked vs. when you actually withdraw. I use a simple spreadsheet tracking: deposit date/amount, bonus received, wagering requirement completion date, and final withdrawable amount. This way I can clearly show the IRS what portion represents actual gambling income versus return of my original deposits. Most importantly, don't try to separate "bonus money wins" from "real money wins" - the IRS doesn't recognize that distinction once the money is all in your account.