Is there a way to check if someone is a legitimate tax preparer before hiring them? Like a database or something?

Yes, you can verify if someone has a valid PTIN through the IRS. While the IRS doesn't have a public database you can search, you can ask to see their PTIN certificate or card before working with them. Legitimate preparers will have this readily available. You can also check if they're a CPA (through your state's board of accountancy), an Enrolled Agent (through the IRS), or a member of professional organizations like the National Association of Tax Professionals or the National Association of Enrolled Agents.

OMG that's terrifying! Did you ever get it resolved? Did you have to pay penalties?

But isn't it still smart to plan ahead? I mean, even if the full 44.6% doesn't pass, there could be some increase, right? Better safe than sorry...

Planning ahead is always good, but I wouldn't make any drastic moves based on proposals that haven't even made it to committee yet. If you're really concerned, the best approach is probably to run multiple scenarios - what happens if rates stay the same, what happens if they go up moderately, and what happens in the worst case. Then identify strategies that work reasonably well across all scenarios. The biggest mistake would be making irreversible financial decisions based on tax proposals that might never materialize.

I've been using H&R Block Premium, and they have a "tax calculator" feature that lets you adjust income types and tax rates to see different scenarios. It's not super sophisticated but it gave me a rough idea of how different capital gains rates would affect my bottom line.

Thanks for the suggestion! I'll take a look at H&R Block. I really need something that can help me visualize the impact since I'm planning to sell a rental property next year that I've owned for about 15 years. The potential tax difference between current rates and the proposed rates would be substantial for me.

No, that's not accurate. The Roth IRA contribution limits for 2024 were $6,500 for people under 50 and $7,500 for people 50 and older. The income phase-out ranges for 2024 were $138,000-$153,000 for single filers and $218,000-$228,000 for married filing jointly. There were no surprise adjustments or reductions.

I don't think she'll be actively involved in the business - it's really more of a passive investment. But that's a good point about potentially using a C Corp structure instead. Would that change how the treaty applies? What would be the advantages/disadvantages?

If she's truly passive, then the disregarded LLC with treaty benefits is probably fine. The treaty would still apply to dividends paid by a C Corporation, but potentially at different rates depending on ownership percentage. The main advantage of a C Corporation structure is that it creates a clearer separation for estate tax purposes. With a disregarded LLC, the French mother would be considered to directly own the US business interests, which could potentially subject those interests to US estate tax if she passes away. A C Corporation creates a blocker that can help shield foreign investors from US estate tax on the underlying business assets. The downside is you'd have potential double taxation of income (corporate level plus dividend level), though the reduced treaty rate helps.

This is really important! France might not recognize the disregarded entity concept the same way the US does. I had a client from Paris with a similar structure and the French tax authorities treated the LLC as a separate entity regardless of the US tax classification, creating a huge reporting headache.

We don't have any side businesses, but we do have some investments that probably didn't have withholding. And we're not homeowners yet so no mortgage interest. Do retirement contributions through our employers' 401k plans automatically reduce our taxable income or do we need to do something special to claim that?

401k contributions through your employers should automatically reduce your taxable income - they're taken out pre-tax so they already lowered the W-2 income reported to the IRS. You don't need to do anything special to claim those. If you have investment income without withholding, that's likely contributing to your tax bill. For the future, you might want to make quarterly estimated tax payments on that income, or increase your W-4 withholding to cover it. The key is making sure you're paying enough tax throughout the year one way or another.

I use TurboTax Premium and it does have a W-4 calculator that can help with this. After you complete your return, it offers to help you update your W-4 for next year based on your results. It's pretty helpful but honestly I still found it confusing when dealing with two incomes.