Just want to echo what others have said - you're in a great position with the LLC! Your income is well below the phaseout limits, and your education expenses definitely qualify. One small thing to double-check: make sure your school reports the tuition payments correctly on your 1098-T form. Sometimes there's a timing difference between when you paid and when the school reports it, especially if you paid in December for spring semester or made payments across multiple tax years. The IRS matches your claimed credit against what's reported on the 1098-T, so you want those numbers to align. Also, keep all your receipts and documentation for the tuition payments, even though you probably won't need to submit them with your return. If you ever get audited, you'll want to have proof of exactly what you paid and when. Sounds like you've got this figured out though - claiming the LLC will definitely get you that full $2,850 refund since it'll zero out your tax liability completely!

I just went through this exact same situation last year as a grad student! Your calculation is spot on - with the LLC reducing your tax liability to $0, you'll get back the full $2,850 that was withheld, which is $750 more than you'd get with just the standard deduction. One tip that saved me some headache: when you're filling out Form 8863 (the education credits form), make sure to use the "qualified tuition and fees" amount from your 1098-T, not the total amount you paid to your school. Sometimes schools include non-qualifying expenses like student activity fees or technology fees in their billing, but those don't count toward the LLC. Also, since you mentioned this is your first time filing on your own, don't stress too much about the process. The LLC is one of the more straightforward education credits to claim, especially since you're well below the income limits. Just make sure you keep copies of your 1098-T and any payment receipts in case the IRS ever wants to verify your expenses. Congrats on getting such a good refund - that extra $750 should help with next semester's expenses!

Has anyone mentioned checking if your school offers any scholarships specifically for married students or homeowners? My university had a few special scholarship programs for "non-traditional" students that included married undergrads. Was an extra $2500/semester that most people didn't even know existed! Also check with your employer - many offer tuition assistance that isn't income-based like FAFSA. My company paid $5250/year (tax-free!) toward my degree regardless of marital status.

One thing that hasn't been mentioned is the timing of when you actually file your FAFSA versus when you get married. Even if you get married in 2025, you can update your FAFSA dependency status mid-year through a "special circumstances" review with your financial aid office. This means you could potentially get the best of both worlds - file initially as a dependent (if that's beneficial for any reason), then update to independent status after marriage. Also, regarding the homeowner tax benefits, make sure you're not confusing the expired federal first-time homebuyer credit with current programs. Many states and localities offer first-time buyer assistance, mortgage interest deductions, and property tax exemptions that aren't affected by marital status as long as both names are on the deed. Another consideration: if you're planning to have children in the future, being married before starting school could make you eligible for additional grants and childcare assistance programs that aren't available to unmarried couples, even if you don't have kids yet during your studies. I'd strongly recommend running the numbers both ways using the Federal Student Aid Estimator on the FSA website, then consulting with a tax professional who understands education benefits before making your final decision.

Hey Ethan! I went through this exact same situation a few years ago when I was doing tutoring and pet sitting around my neighborhood. Just to add to what others have said - when you go to deposit the cash, you can literally just tell the bank teller "I earned this money doing odd jobs like yard work and house sitting in my neighborhood." They might ask for a bit more detail, but there's nothing suspicious about a teenager earning money this way. Banks see this all the time. One thing that helped me was creating a simple log of the work I did and when, even if it was just rough estimates. Like "October - helped Mrs. Johnson with yard cleanup, $150" or "November - dog sat for the Smiths, $200." It doesn't have to be perfect, but having some record makes you feel more confident about everything. Also, don't stress too much about the tax part. Yeah, you'll probably owe some money, but it's not going to be a huge amount. The self-employment tax is about 15% of your profits, so even if you had no deductible expenses, you'd be looking at maybe $800 or so. And if you can deduct any equipment or supplies you bought, it'll be less than that. You're being really responsible by thinking about this stuff now instead of just ignoring it!

Hey Ethan! As someone who's helped a lot of teens navigate this exact situation, I wanted to add a few practical tips to what's already been shared here. First, don't worry about the bank deposit - just be straightforward about earning it from neighborhood jobs. Banks are used to this, especially during summer months when lots of young people do yard work and odd jobs. For the tax side, since you've earned over $400 in self-employment income, you'll need to file. But here's the good news - you can likely deduct quite a bit! Gas for any equipment, tools you purchased, even mileage if you drove between jobs. Keep track of everything going forward. One thing I always tell young entrepreneurs like yourself: consider opening a separate savings account just for taxes. A good rule of thumb is to set aside about 20-25% of what you earn for taxes (this covers both income tax and self-employment tax, with a small buffer). So from your $5,300, maybe put $1,200-$1,300 aside. That way you're not stressed when tax time comes. Also, this is actually great preparation for if you want to keep doing this kind of work! You're learning business skills that will serve you well. Consider getting a simple invoice book or app so you can start tracking everything more formally going forward. You're asking all the right questions - way more responsible than I was at 17!

This thread has been incredibly helpful! I'm dealing with a very similar situation as a software developer working from Brazil for a US startup. The information about foreign-sourced income not being subject to US withholding has been eye-opening. One thing I'd like to add for other Brazilian contractors: make sure you understand how this affects your tax situation with Receita Federal. Since you'll be receiving the full payment without US withholding, you'll need to declare this as foreign income on your DIRPF and pay Brazilian taxes on it. The good news is that you can often claim this as "rendimentos recebidos do exterior" which sometimes has more favorable tax treatment. Also, for those mentioning the W-8BEN form - in my experience, most US companies' accounting software automatically flags foreign contractors for 30% withholding until they have a properly completed W-8BEN on file. Even though you'll leave Part II blank (no treaty benefits), having that form completed and submitted promptly is crucial to avoid any withholding delays. Has anyone here dealt with the situation where a US client initially withholds taxes by mistake and then needs to refund them? I'm curious about the process for getting those funds back if it happens.

This has been such an informative discussion! As someone who's been working as a remote contractor from various countries over the past few years, I can confirm that the guidance here about foreign-sourced income is spot-on. One additional resource that might be helpful: if you're still getting pushback from your US client about withholding requirements, you can direct them to IRS Revenue Ruling 87-4, which specifically addresses the sourcing rules for personal services. It clearly states that compensation for personal services is sourced where the services are performed, not where the payor is located. I've also found that many US companies have automated payroll systems that default to withholding for any foreign contractor, regardless of the actual tax requirements. Sometimes you need to work directly with their tax department or external accountant rather than just HR or payroll to get the proper exemption set up. For those dealing with treaty vs non-treaty countries, remember that the lack of a tax treaty doesn't change the fundamental sourcing rules - it just means you can't claim reduced withholding rates that might be available under treaty provisions. But if your income is foreign-sourced to begin with, the treaty status is irrelevant for withholding purposes.

Has anyone ever successfully fought a fringe benefit tax? My company is taxing us for the free lunches they provide in the office which seems ridiculous since I'm basically working through lunch anyway.

I see a lot of great explanations here, but I wanted to add one more possibility that might help explain your situation. Sometimes employers will have a "true-up" or catch-up process for fringe benefits that happens at year-end or after annual enrollment periods. For example, if you enrolled in benefits mid-year, or if there was an error in how your benefits were being calculated throughout the year, your employer might need to correct the tax withholding with a one-time adjustment. This could explain why you're seeing it as a single deduction rather than ongoing monthly taxes. I'd definitely recommend checking with your HR department about the specific benefit this relates to, and ask them to provide documentation showing how the taxable amount was calculated. They should be able to give you a clear breakdown - it's not something you should have to guess about on your paycheck. Also worth noting that if this is related to a significant fringe benefit (like a large life insurance policy or company car), make sure you're prepared for it to potentially show up on your W-2 as additional income when tax season comes around.