Quick question - does anyone know if this same principle applies to cash back from credit cards used for business purchases? Like if I get 2% back on all my business expenses, should I be reducing all my deductions by 2%?

This is a really common confusion for freelancers and small business owners! I dealt with something similar when I got a promotional bonus from a business credit card signup. The consensus here is spot on - you can only deduct your actual out-of-pocket expense of $40. The $200 gift card effectively reduced your cost basis for the equipment, just like if you had used a coupon or bought the items on sale. One thing to keep in mind for future reference: make sure you're keeping good records of these promotional bonuses and how you use them. The IRS likes to see clear documentation that separates business and personal use, especially when gift cards or rewards are involved. Also, since you mentioned you're a freelance videographer, don't forget you can still deduct the full $40 plus claim depreciation on the camera equipment over time (depending on the cost and type of equipment). Sometimes the depreciation deduction can be more valuable than the immediate expense deduction anyway!

Don't forget to track your Cash App fees as deductions too! I do pet portrait commissions through Cash App, and when I switched from accepting "friends and family" to proper business payments, I started paying those 2.75% transaction fees. Those are fully deductible business expenses. Also, if you're using your phone to process payments or communicate with clients, you can deduct a portion of your phone bill. Same goes for mileage if you drive to meet clients, and any supplies specific to your business.

Yes, you can absolutely amend your prior year return to claim those Cash App fees! You'll need to file Form 1040-X (Amended U.S. Individual Income Tax Return) to add those business expenses to your Schedule C. Just make sure you have documentation of the fees - Cash App transaction history showing the fees charged should be sufficient. You generally have 3 years from the original filing deadline to amend a return, so if you filed your 2023 return on time, you have until April 15, 2027 to amend it. The $300 in fees could result in a decent refund depending on your tax bracket. If you're in the 22% bracket, for example, that's about $66 back plus whatever self-employment tax savings you'd get (roughly another $46). Definitely worth the effort to file the amendment!

Pro tip: take screenshots of your transcript every time you check it. The IRS website is notorious for going down when you need it most fr fr

Girl I feel your pain! 😅 Those transcript codes are like reading hieroglyphics. I was in the same boat last month - staring at all those numbers like 806, 150, 846 and having no clue what any of it meant. What helped me was literally googling each code individually and writing down what they meant. Code 846 is your actual refund amount, 150 is what you owed in taxes, and 806 is what was withheld from your paychecks. But honestly there are SO many other codes that can affect your final number - it's overwhelming af. If you want the easy route, some people here mentioned taxr.ai which apparently breaks it all down for you, but you can also just focus on finding that 846 code for now to see your refund amount!

A word of caution from personal experience - when you file that amended return, make sure you pay any additional tax ASAP. Interest keeps accumulating from the original due date of the return, not from when you discover the problem. I reported my preparer last year and ended up owing about $3,800 in additional taxes, plus almost $450 in interest because I waited a few months to actually pay after filing the 1040-X.

I'm going through something very similar right now and wanted to share what I've learned from my tax attorney. The most important thing is to act quickly but methodically. First, gather ALL documentation related to your tax preparation - emails, worksheets, receipts, anything the preparer gave you or asked for. This will be crucial evidence. When you file Form 14157 and 14157-A, be as specific as possible about what the preparer did wrong. Don't just say "they added deductions I didn't authorize" - list each specific deduction, the amount, and explain what documentation (if any) you actually provided. The more detailed you are, the stronger your case. One thing that really helped me was keeping a timeline of all my interactions with the preparer. Write down dates, what was discussed, what documents you provided, etc. This shows the IRS that you were engaged in the process appropriately and didn't just blindly sign whatever was put in front of you. Also, consider getting a consultation with a tax professional before filing your amended return. Yes, it costs money upfront, but having someone review your situation can help ensure you don't miss anything or make additional errors. The last thing you want is to file an amended return that still has problems.

Don't forget about tax treaties! Many countries have tax treaties with the US that can reduce or eliminate withholding for J1 research scholars. For example, if you're from the UK, Germany, China, or India (among many others), you might qualify for reduced withholding. You'll need to fill out Form 8233 in addition to your W4 to claim treaty benefits. Your university should have this form available through the international office or payroll department.

As someone who went through this exact situation last year, I want to emphasize something that might not be obvious: even though you'll likely become a resident alien later in 2024, you should absolutely check the nonresident alien box on your W4 right now. Here's why this matters: your current withholding needs to match your current status. If you don't check the box, your employer will withhold taxes as if you're a US resident from day one, which could result in significant overwithholding that you'll have to wait until tax season to recover. When your status does change (likely after your second calendar year as a J1, not just based on days present), you can submit a new W4 to adjust your withholding going forward. Most universities are very familiar with this process since they deal with international scholars regularly. One more tip: keep detailed records of all your entry/exit dates and visa statuses. You'll need this information for your tax return, and it helps if any questions come up about when exactly your residency status changed.