Just wondering, does your dad's tax preparer work at a major chain or are they independent? I worked at one of the big tax prep companies and we had specific training on dependent tests. This mistake seems really basic for a professional.

This is definitely a frustrating situation, but you're absolutely right to question this. The tax preparer is incorrect about the income limits for dependents your age. Since you're 21 and not a student, the income test for qualifying child status is $4,700 for 2024 - not the standard deduction amount. Your income of $12,630 far exceeds this limit, so you cannot be claimed as a qualifying child dependent. For qualifying relative status, your father would need to provide more than half of your total support for the year. Given your income level, this seems unlikely unless you had very high expenses that he covered. Here's what I'd recommend: 1. Don't sign any tax documents that list you as someone else's dependent 2. Show your father and his tax preparer the official IRS Publication 501 which clearly outlines these rules 3. Request that your father file an amended return (Form 1040-X) to remove you as a dependent 4. File your own return claiming yourself If your father refuses to amend his return and you file correctly claiming yourself, the IRS will send correspondence to both of you to resolve the duplicate claim. You won't be penalized for filing correctly, but be prepared to provide documentation of your income and support situation. Don't let anyone pressure you into filing incorrectly just to avoid conflict. The rules are clear, and you have every right to claim your own exemption.

Not sure if this helps, but the non-deductible traditional IRA contributions can still make sense in certain cases. If your income is too high for direct Roth contributions, you might be able to do what's called a "backdoor Roth" where you make non-deductible traditional IRA contributions and then immediately convert to Roth. The key is having no other pre-tax IRA money (including SEP, SIMPLE or rollover IRAs) to avoid the pro-rata rule. If you do have other pre-tax IRA money, you'd be taxed proportionally on any conversion. This is definitely where Form 8606 becomes critical, as it tracks your non-deductible basis. Worth looking into if you're above the Roth IRA income limits!

Quick question about Form 8606 - I've been doing non-deductible IRA contributions for 3 years but just learned I was supposed to be filing this form. Can I file it retroactively for previous years? Will I get penalized for not filing it before?

I'm an Enrolled Agent and see this situation frequently with contractors and mobile service businesses. Here's what you need to know: 1) Employee snacks and beverages like you're describing are typically 100% deductible as de minimis fringe benefits, even when not provided at a traditional office. 2) The key distinction is between "snacks/refreshments" vs "meals" - if you're buying actual meals (like hot food from the deli counter), those would likely fall under the 50% limitation. 3) Document, document, document! Note on receipts: date, business purpose, who received the items. 4) Be reasonable with amounts - $5-10 per employee for snacks/drinks won't raise eyebrows, but large amounts might trigger questions. 5) Consider setting up a specific credit card just for these purchases to make tracking easier. Hope that helps! The mobile nature of your business doesn't eliminate deductions that would be available in a traditional office setting.

This is really helpful information everyone! I run a small plumbing business and face the exact same situation - always on the road with my crew and grabbing drinks/snacks to keep morale up during long days. One thing I'd add from my experience: if you're doing this regularly, consider getting a business credit card specifically for these employee-related expenses. It makes tracking so much easier at tax time, and you can set spending limits if needed. Also, don't forget that if you're providing these snacks consistently, your employees might need to report them as income if they exceed the IRS de minimis thresholds. But for occasional convenience store runs like you're describing, that's usually not a concern. Keep doing what you're doing - happy employees are productive employees, and the IRS recognizes legitimate business expenses for employee benefits even in mobile work situations.

5 My dad started taking social security at 67 while still working part time as a consultant. His big mistake was not realizing how it would affect his tax bracket! He ended up in a higher bracket and actually netted less overall than if he'd waited till 70 when he fully retired. Sometimes the extra SS income can actually hurt you financially if you're not careful.

One thing I'd add to this great discussion - don't forget to consider the "do-over" rule if you change your mind. If you start collecting Social Security and later decide it wasn't the right choice, you have 12 months from your first benefit payment to withdraw your application and pay back everything you received (without interest). This essentially gives you a one-time reset. Also, if you're married, coordinate your claiming strategy with your spouse! The timing of when each spouse claims can significantly impact survivor benefits. Sometimes it makes sense for the higher earner to delay while the lower earner claims early, or vice versa. Given that you're an accountant, you probably already know this, but make sure you're factoring in the time value of money when comparing scenarios. A dollar today is worth more than a dollar in three years, so even though delaying increases your monthly benefit, the total lifetime value calculation can be tricky depending on your investment returns and life expectancy assumptions.

WARNING: You need to be super careful with your US brokerage accounts! Many US financial institutions will FREEZE or even CLOSE your accounts when they find out you have a foreign address. I moved to Australia and lost access to my Vanguard account until I could provide a US address (ended up using my parents'). Also, don't forget about PFIC rules if you invest in non-US mutual funds or ETFs in New Zealand - the tax treatment is BRUTAL. Stick with US-based investments through your existing accounts if possible.

Great question! I went through something similar when I moved to the UK a few years ago. A couple of additional points that might help: For your 401(k), you'll want to check if your employer's plan allows contributions while you're on international assignment. Some plans restrict this, but since you mentioned they have Auckland offices, they likely have experience with expat employees. Also consider that if you become an NZ tax resident, your 401(k) growth might be taxable in NZ even if it's tax-deferred in the US - definitely something to discuss with a tax advisor familiar with both systems. Regarding your rental property breaking even - don't forget about depreciation! Even if your cash flow is neutral, you can still claim depreciation on the property which often creates a tax loss on paper. This can be valuable for offsetting other income. One more tip: start keeping detailed records of everything NOW. Track your days in each country (for the physical presence test), keep receipts for moving expenses, and document your ties to NZ vs the US. The IRS loves documentation, and good records will save you headaches later. Also consider opening an account with a US bank that's expat-friendly (like Schwab International) before you move. It's much easier to establish these relationships while you still have a US address.