Quick question - does anyone know if there's a minimum amount of capital gains that requires reporting for F1 students? I made like $200 from stocks this year and wondering if I even need to bother with all this Schedule D stuff.

Just to clarify one more point that might be confusing - while everyone is correctly saying to use Schedule D for your capital gains, make sure you understand that as an F1 student filing Form 1040NR, you'll be using Schedule D-NR (the nonresident version), not the regular Schedule D that US residents use. The calculation process is essentially the same, but Schedule D-NR has some specific instructions for nonresidents. Your $720 gain from $5,800 in stock sales would definitely need to be reported using this form, and then the net gain would transfer to your 1040NR. Also, keep good records of your cost basis and sale dates - you'll need those details for the Schedule D-NR. Don't let your friend convince you to use Schedule NEC, that's definitely for contractor/freelance income, not investment gains.

Has anyone used TurboTax for home office deductions? I'm worried it doesn't ask enough detailed questions about exclusive use and business startup costs. Is there better software for small business owners?

Don't panic - IRS inquiries about home office deductions are actually pretty common, especially when there's a significant expense with no corresponding income. The fact that they're asking for documentation doesn't necessarily mean you did anything wrong. However, there are a few potential issues with your approach. Business startup costs over $5,000 typically need to be amortized over 15 years rather than deducted all at once. Also, home improvements generally must be depreciated rather than expensed immediately, even for business use. The key things the IRS will be looking for: 1) Receipts and invoices showing the actual costs, 2) Evidence the basement is used exclusively for business (photos, floor plans), 3) Documentation showing legitimate business intent, and 4) Proper categorization of which expenses qualify as immediate deductions vs. depreciation. Gather all your renovation receipts, take photos of the current business setup, and consider consulting a tax professional who can help you amend your return if needed. Being proactive and transparent with the IRS usually leads to better outcomes than trying to defend questionable positions.

wait are we supposed to be reporting money from zelle?? I got like $22k last year from clients and didnt report any of it... am i gonna be in trouble??

This is a really important question, and I'm glad you're asking now rather than later! You're correct that Zelle doesn't issue 1099-K forms because it facilitates direct bank-to-bank transfers rather than acting as a third-party payment processor like PayPal or Venmo. However, the absence of a 1099-K absolutely does NOT mean you don't need to report the income. All income from your tutoring and freelance work is taxable and must be reported on your tax return, regardless of whether you receive any tax forms. The IRS is very clear on this - income is income, no matter how you received it. With $14,800 in business income, you're definitely over the threshold where this becomes significant. I'd strongly recommend: 1. Keep detailed records of all your Zelle transactions - dates, amounts, and what each payment was for 2. Separate business payments from personal transfers (like money from family/friends) 3. Consider setting up a separate business bank account to make tracking easier 4. Save money throughout the year for taxes since you won't have withholding Don't let the lack of official forms fool you into thinking this income is somehow "under the radar." The IRS has ways of detecting unreported income, and it's always better to be proactive about compliance than to deal with problems later.

I actually work in payroll software development. The technical challenge isn't separating overtime hours (we already do that), but in how withholding calculations work. Current systems calculate tax withholding based on total gross pay, with certain pre-tax deductions (like 401k) subtracted before calculating. Creating a new type of non-taxable income that's still reported on W-2s would require: 1) Updated database schemas across payroll systems 2) New tax calculation modules 3) Modified reporting to handle the new income type 4) Updated integration with tax filing systems Most modern payroll systems could adapt, but it would take 8-12 months of development work. Legacy systems would struggle more. Companies using outdated payroll software might need to completely replace their systems.

As someone who's worked in both HR and accounting, I can add that the audit implications would be massive. Currently, overtime calculations are relatively straightforward to verify - did the employee work over 40 hours? Are they classified correctly as non-exempt? But with tax-free overtime, the IRS would need to verify not just that overtime was paid, but that it was properly classified as tax-exempt. This would require much more detailed recordkeeping. Companies would need bulletproof timekeeping systems and clear policies about what constitutes "overtime" versus other premium pay. I've seen how much trouble companies get into during DOL audits when overtime calculations are wrong. Adding a tax exemption layer would multiply that complexity. Every misclassified hour could result in both labor law violations AND tax compliance issues. The transition period would be brutal - companies would essentially be running two different systems simultaneously while ensuring compliance with both old and new rules.

Be super careful with this! My cousin and her boyfriend tried something similar and got audited. The IRS made them pay back all the extra refund money plus penalties. The problem was they both lived together full-time and the lower-income partner claimed all the kids even though the higher-income partner was providing most of the household support. The IRS has specific tiebreaker rules that say if you both live with the kids and both qualify to claim them, the person with the higher AGI gets to claim them.

I understand your situation completely - my partner and I faced this same dilemma a few years ago. The $13.5k difference in refunds is definitely tempting, but you're right to be cautious. The reality is that when both unmarried parents live together full-time with the children, the IRS tiebreaker rules typically require the higher-income parent (you) to claim the dependents. Your girlfriend claiming all three kids while you both live together and you earn nearly double her income would likely trigger red flags if audited. However, there are legitimate strategies you might consider: 1. **Split the dependents**: You could claim 1-2 children while she claims the other(s). This allows both of you to potentially qualify for Head of Household status and her to get some EIC benefits. 2. **Document everything**: If you do split, keep meticulous records of which parent pays for what expenses for each specific child (childcare, medical, clothes, activities, etc.). 3. **Consider marriage**: I know you joked about it, but getting married might actually optimize your tax situation even further, especially with the changes to filing jointly vs. separately. The key is staying compliant while maximizing benefits. That $19k refund sounds great until you have to pay it all back with penalties and interest. I'd recommend consulting with a tax professional who specializes in unmarried parents situations before making any major changes to your filing strategy.