That's really helpful context - I like the idea of a focused consultation rather than an ongoing relationship. Did your CPA provide any kind of written plan or checklist to follow throughout the year?

Yes, we received a 3-page tax planning summary with specific action items and deadlines. It included recommendations for retirement contribution amounts, estimated tax payment dates (we have a small side business), and year-end moves to consider in December. The CPA also sent a mid-year reminder email to check if our situation had changed and offered a brief free follow-up call if needed. We didn't need it, but I appreciated having that option without paying for a full additional consultation.

This is spot on. When I finally found a CPA who specialized in planning instead of just filing, she immediately identified that we were phasing out of several credits due to our income level. She helped us increase 401k contributions to drop our AGI just enough to qualify for those credits again. That one change was worth over $3,200!

Thanks, this makes the situation much clearer. I think I've been confusing my personal tax status with my business obligations. The business income seems to be taxable in the US regardless of how long I was physically present. So I guess I'll have to file in both countries and hope the tax treaty helps avoid double taxation?

Yes, you've got it right. You'll need to file tax returns in both countries. The US return will report your US-sourced LLC income, and your home country return will typically include your worldwide income. Most tax treaties have provisions to prevent double taxation through foreign tax credits. This means you can usually claim a credit on your home country tax return for taxes paid to the US on the same income. This doesn't eliminate your need to file and pay in both places, but it should prevent you from being taxed twice on the same money. I'd recommend working with a tax professional who specializes in international taxation to make sure you're applying the treaty provisions correctly.

This is a really good point about the student visa. I had a similar situation and made the mistake of filing jointly which resulted in being taxed on worldwide income. Definitely consider filing separately if you're both non-residents!

Thanks for the suggestion! I never thought about that. Do you know if your hospital had any formal program or did you just organize it with coworkers yourself?

Our HR department had a formal carpooling program with a registry where you could sign up and get matched with people working similar shifts in your area. They issued special carpool parking passes that were discounted. Even if your hospital doesn't have a formal program, you could still organize one yourself with coworkers who live near you. We eventually just arranged it ourselves because we found people with more compatible schedules than the official matching system. Just make sure whatever arrangement you make complies with your parking contract rules.

Public transit is great if it's available, but not everyone has that option. I work at a suburban hospital with literally no bus service within 2 miles.

What accounting software would you recommend for someone just starting out? I'm in a similar situation with a small side business and terrible bookkeeping habits.

For someone just starting out, I'd recommend something simple like Wave (which is free) or QuickBooks Self-Employed. Both let you connect your personal accounts but categorize transactions as business or personal. Wave is completely free for invoicing and accounting (they make money on payment processing), while QuickBooks Self-Employed costs a bit but has more features for tracking mileage and estimating quarterly taxes. The key is just to pick something and start using it consistently. Even a well-maintained spreadsheet is better than nothing. If your business grows, you can always upgrade to more comprehensive software later. The important thing is separating business from personal transactions so you can easily report your income and deductions at tax time.

Nope! You only pay taxes on your profits. If you bought something for $100 and sold it for $75, that's actually a $25 loss that would reduce your overall taxable business income. This is why keeping good records is so important - you want to track both the winners and losers in your inventory to accurately calculate your true profit.

Thank you! That's a huge relief. I was worried I'd have to pay taxes on every sale regardless of whether I made money. Good to know the losses can offset the gains. I'll definitely be keeping better records of my purchase prices from now on.

That's so interesting about the round numbers! I've been using 50% for my home internet for years. Should I go back and amend previous returns or just change it going forward?

I wouldn't worry about amending previous returns for this - the potential benefit isn't worth the hassle and potential scrutiny of an amendment. Just adjust your approach going forward. Create a simple tracking method now and use a more specific percentage based on that data for this year's taxes. Remember that amendments can sometimes trigger additional review, and unless you're talking about very large dollar amounts, making this change prospectively is the most practical approach. The main point is to have better documentation going forward and avoid those perfectly round percentages that can look like arbitrary estimates.

That's probably overkill for someone just starting out. A basic business internet connection is like $70-100/month minimum. If their business is just getting going, spending an extra $1000+ a year just for cleaner accounting doesn't make financial sense.

You're right about the cost consideration. I guess I was thinking longer-term when the business is more established. For starting out, a reasonable percentage of the existing connection makes more sense financially. My accountant's advice was more applicable once my business was generating significant income. At that point, the simplicity and audit protection of having a dedicated business line outweighed the extra cost.