Another option worth considering if you have substantial unreimbursed business expenses: talk to your employer about either reimbursing these costs or offering an "accountable plan" for expenses. My company initially wasn't covering our WFH equipment either when we went hybrid, but several of us pointed out the tax disadvantages to employees. They ended up creating a formal expense reimbursement plan that follows IRS "accountable plan" rules. This way, the company gets the deduction and employees receive tax-free reimbursements. Might be worth bringing this up to your HR department with some research on accountable plans. Many employers aren't aware of how these plans benefit both the company and employees.

Just wanted to add another perspective as someone who went through this exact confusion last year. The suspension of miscellaneous itemized deductions really caught a lot of people off guard, especially those of us who had been claiming unreimbursed employee expenses for years. One thing that might help: even though you can't deduct those expenses now, keep detailed records of everything. If the TCJA provisions do expire in 2026 as scheduled, you'll want to have all that documentation ready. Also, some of these expenses might be relevant for other tax situations - like if you change jobs and negotiate expense reimbursement, or if you start any freelance work where they could become legitimate business deductions. The silver lining is that this whole experience taught me to be much more proactive about discussing expense reimbursement with employers upfront. When I started my current job, I made sure to negotiate coverage for professional development and equipment as part of my compensation package rather than assuming I could just deduct it later. Don't feel bad about being confused - the tax code changes have made this area really murky, and even some tax professionals were initially unclear on the implications!

Hey there! Welcome to the adulting club - it's definitely overwhelming at first, but you're asking all the right questions! Everyone here has given you excellent advice, but I wanted to add one more perspective as someone who works in tax preparation. You're absolutely correct that there's no special "IRS registration" at 18 - that's one of the most common myths I hear from young adults and their parents. One thing I'd suggest is getting familiar with the IRS's Interactive Tax Assistant tool on their website. It's a free resource that walks you through questions about your specific situation and tells you whether you need to file. It's particularly helpful for students because it accounts for things like dependency status, types of income, and education-related factors. Also, when you do eventually start working, don't be afraid to ask HR questions about your W-4. Many young people just fill it out randomly, but taking a few minutes to understand it can save you from either owing money at tax time or giving the government an interest-free loan through over-withholding. You're being incredibly responsible by researching this ahead of time. Most people your age don't think about taxes until they absolutely have to, so you're already setting yourself up for success!

Welcome to the world of adulting! You're definitely asking the right questions at the right time. As others have mentioned, you're absolutely fine for this tax year since you had no income - the filing requirement is based on income thresholds, not age. One thing I'd add that might be useful for your future planning: when you do start working (whether part-time during school or full-time after), keep all your tax documents organized from day one. Create a simple folder (physical or digital) where you store things like W-2s, 1099s, receipts for work-related expenses, and education-related documents. It seems like overkill when you're young and have simple taxes, but it becomes incredibly valuable as your financial situation gets more complex. Also, since you mentioned your parents use an accountant - don't hesitate to ask them if you can sit in on a tax appointment sometime, even just as an observer. Seeing the process in action can demystify a lot of the tax preparation process and help you understand what kinds of records you need to keep. You're already showing great financial responsibility by researching this early. That mindset will serve you well as you navigate all the other aspects of financial adulting!

Is there a tax software that actually handles this correctly? I've been using TurboTax for my small business and it asks me to select a depreciation method but doesn't explain the limitations or when I can/can't make changes. Just looking at switching to something better for next year.

This is a great question that I see come up a lot! To add to what others have said - the key thing to understand is that depreciation method elections are made on a per-asset basis when you first place the property in service, not something you can change year to year. However, there are a few important points worth clarifying: 1. **New assets vs. existing assets**: For any NEW equipment you purchase, you absolutely can choose 150% declining balance even if your older assets are on 200%. Each asset gets its own depreciation schedule. 2. **Automatic optimization**: Both 200% and 150% declining balance methods will automatically switch to straight-line when that becomes more beneficial - this usually happens in the later years of the asset's life and requires no paperwork. 3. **Section 179 and Bonus Depreciation**: Don't forget to consider whether you might benefit more from Section 179 expensing or bonus depreciation for new equipment purchases instead of worrying about declining balance percentages. The IRS is pretty strict about method changes because they don't want taxpayers gaming the system by switching methods based on annual income fluctuations. If you're really set on changing existing assets from 200% to 150%, you'd need Form 3115 and a valid business reason beyond just tax optimization. What type of equipment are you depreciating? That might help determine if there are other strategies that could work better for your situation.

Has anybody actually tried keeping their foreign mutual funds after becoming a US resident? I'm curious about the real tax impact compared to just selling everything.

This is exactly the kind of situation where getting proper guidance early makes a huge difference. From what you've described, your tax preparer's suggestion about filing 5 years of retroactive FBARs seems overly conservative - as others have mentioned, you were a non-resident alien during those F1 years. One thing I'd add is to be very careful about the timing of when you became a tax resident. The substantial presence test calculation can be tricky, and the exact date matters for PFIC purposes. If you only became a resident partway through 2024, your PFIC reporting might only apply from that specific date forward. Also, regarding your question about selling - consider the timing carefully. If you sell early in your first resident year, you might be able to limit the PFIC gains to just a few months rather than a full year. The compliance burden for ongoing PFIC reporting really is significant, as others have noted. Between the annual Form 8621 requirements and the punitive tax treatment, many people find it's worth taking the one-time hit to get out of these investments entirely. I'd strongly recommend getting a second opinion from a CPA who specializes in international tax before making your final decision. The rules are complex enough that general tax preparers sometimes give overly broad advice.

I went through this exact situation in 2022. Someone filed a fake Schedule C using my SSN claiming $22,000 in self-employment income I never earned. The IRS hit me with penalties and interest totaling $4,300 which they took from my next refund. I submitted Form 14039 (Identity Theft Affidavit) along with my amendment. The process took about 9 months total, but I did get every penny back plus interest. The key was documenting everything meticulously. I created a spreadsheet tracking every call, letter, and submission date. When I finally got through to the Identity Theft department, the agent was incredibly helpful once I could reference specific dates and document ID numbers. Hang in there - it's a slow process but they do eventually make it right.

I'm currently going through a similar identity theft situation with the IRS and found this thread incredibly helpful. Like many of you, I've been frustrated by the lack of clear communication and realistic timelines from the IRS website. Based on what I'm reading here, it sounds like the key steps are: 1. Form 14039 (Identity Theft Affidavit) - which I need to submit ASAP 2. Regularly checking transcripts for specific transaction codes 3. Maintaining detailed documentation of all interactions 4. Being prepared for a 6-12 month timeline despite what the IRS website claims One question I have - for those who successfully recovered funds, did you find it helpful to send follow-up documentation proactively, or is it better to wait for the IRS to request specific items? I don't want to slow down my case by overwhelming them with paperwork, but I also don't want to wait months only to find out they needed something I could have provided earlier. The suggestion about using transcript analysis tools is particularly interesting. I had no idea those transaction codes could provide insight into case progress.