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Heads up - make sure to keep an eye out for a plain white envelope. Its not obviously from the IRS on the outside. I almost threw mine away thinking it was junk mail lol
I got mine about 6 business days after the mail date showed up on WMR. I'm also in CA (Bay Area). The wait is definitely nerve-wracking but it should show up soon! Just keep checking your mail daily like you're doing.
That's reassuring to hear from another CA person! Bay Area too so hopefully similar timing. Did you get any tracking info or did it just show up one day?
classic colorado š
I analyzed 37 different tax transcripts last year while helping friends with their taxes. The code 150 amount is precisely your tax liability calculated on Form 1040 line 16. To determine if you owe or will receive a refund, you need to subtract this amount from the sum of your withholdings (code 806), estimated payments (code 826), and credits (codes 766, 768, etc.). For example, if your code 150 shows $2,480, and your withholdings (code 806) total $3,000, you would receive a $520 refund ($3,000 - $2,480 = $520).
Hey Yuki! I totally understand the confusion - those transcript codes are like reading hieroglyphics at first! š Code 150 just means "tax return filed" and shows your calculated tax liability before any withholdings or credits are applied. Think of it as the starting point, not the finish line. Your $2,480 is what the IRS calculated you owe based on your income, but you've probably already paid some of that through payroll withholdings throughout the year. Look for code 806 (withholdings from your paychecks) and any 7xx codes (tax credits) - those will show what you've already paid or earned as credits. The bottom line of your transcript will show your actual account balance - that's whether you owe money or get a refund. Don't stress too much until you see the whole picture!
One thing nobody mentioned yet - make sure your LLC's operating agreement and Articles of Organization align with S corporation requirements. LLCs by default don't have "shares" but rather membership interests. When you elect S corp tax treatment, you're still an LLC legally but taxed as an S corp. You'll need to make sure your documentation properly addresses this hybrid status. My attorney set up a special operating agreement that references "shares" for tax purposes but still maintains proper LLC language for legal purposes. It's worth getting this right from the beginning.
Thanks for bringing this up! I didn't even think about the terminology conflict between LLC and S corp status. Do you have any suggestions for resources to learn more about how to structure the operating agreement properly? I already filed my Articles of Organization as an LLC with my state.
Since you've already filed your Articles as an LLC, you're on the right track. The operating agreement is where you'll need to be careful. I'd recommend working with an attorney who specializes in business formations to draft an operating agreement that handles the hybrid nature of an S corp LLC. The key elements to include are provisions for authorized shares, how ownership percentages are calculated, transfer restrictions (to maintain S corp eligibility), and distributions. Your operating agreement should specifically reference your intention to be taxed as an S corporation and include language supporting that tax election.
I just went through this whole process last year. One thing to watch for: if you're putting in any non-cash assets (like equipment, intellectual property, etc.), make sure you document their fair market value really carefully. I put in some specialized equipment and valued it a bit too generously - ended up with a nasty tax surprise when my accountant said I had to recognize gain on the "overvalued" portion.
Did you get an appraisal for the equipment beforehand or just estimate the value yourself? I'm planning to contribute some proprietary software I developed and not sure how to establish a defensible value.
For proprietary software, I'd strongly recommend getting a professional valuation from someone who specializes in intellectual property. I made the mistake of just estimating based on development costs and time invested, but the IRS wants fair market value - what someone would actually pay for it. A qualified appraiser can look at factors like the software's income-generating potential, comparable market transactions, and the cost to recreate it. It's an upfront expense but way cheaper than dealing with the IRS questioning your valuation later. My accountant said software IP is one of the areas they scrutinize most heavily because it's so subjective.
Ryan Young
Has anyone here dealt with the green card application and its tax implications? I'm in a similar situation where I'm working in Canada but dating someone in the US and considering applying for a green card in 2025.
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Sophia Clark
ā¢I went through this last year. Just having an approved I-140 (petition) doesn't make you a tax resident. You become a resident for tax purposes on the first day you're present in the US as a permanent resident (when you actually get the physical green card). But here's what many don't realize - once you GET the green card, you're a US tax resident even if you live outside the US! Unless you formally abandon it or take a treaty position, you'll have to report worldwide income to the US forever, even living abroad. Think carefully before applying!
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Oliver Cheng
I'm in a somewhat similar situation - moved from the US to the UK after my F-1 status and dealing with the complexity of dual tax obligations. A few additional points that might help: Regarding your question about proactive reporting - while you don't need to formally notify the IRS of your move, make sure you update your address with them using Form 8822. This ensures any correspondence reaches you in Germany. For the dual-status vs full-year resident question, consider the timing of your German employment start. If you began earning German income in November, a dual-status return might actually be more beneficial since you can exclude the German-sourced income from the non-resident portion of the year, potentially reducing your US tax liability. One thing to watch out for - if you're planning frequent US visits, keep detailed records of your entry/exit dates. The substantial presence test can be tricky with multiple short visits, and you'll need accurate day counts for Form 8840 if you claim the closer connection exception. Also, don't forget about potential German tax obligations on your 2024 US income. Germany generally taxes worldwide income for residents, so you might need to report your pre-November US earnings there too. The US-Germany tax treaty should prevent double taxation, but the paperwork can be complex. Good luck with everything! International tax compliance is definitely not straightforward, but staying organized with documentation will save you headaches later.
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