Don't forget to keep detailed records of everything. As a contractor myself, I learned the hard way that it's not just about whether something is deductible, but being able to prove it if you're audited. For books and educational materials: 1. Save the receipts 2. Write the business purpose on the receipt (like "reference material for electrical work") 3. If it's a digital purchase, save the email confirmation 4. Take a photo of physical books with their covers visible as additional documentation It's also smart to have a separate credit card just for business expenses to keep everything clean and separate.

I'm surprised nobody mentioned the home office deduction! If you're reading these books and doing paperwork in a dedicated home office space, you might be able to deduct a portion of your rent/mortgage, utilities, internet, etc. Just make sure the space is used EXCLUSIVELY for business.

I'm in exactly the same boat but with accounts in Germany. According to my research, if you file the FBAR before they contact you about it, you should be fine without penalties. I just did mine last week (about 2 months after filing taxes) and included a brief statement explaining that I didn't know about the requirement as a first-time expat.

Don't panic! You're definitely not alone in this situation. The FBAR requirement catches a lot of Americans living abroad off guard, especially digital nomads who are dealing with tax obligations for the first time. The good news is that $13,000 isn't a huge amount over the $10,000 threshold, and since you're proactively trying to fix this before being contacted, you're in a much better position than someone who gets caught later. The IRS generally recognizes that many people genuinely don't know about FBAR requirements, especially first-time expats. I'd recommend filing the delinquent FBAR as soon as possible through the BSA E-Filing System on FinCEN's website. Make sure to include a clear explanation that you weren't aware of the requirement as a new expat. Keep it simple and honest - something like "As a first-time digital nomad, I was unaware of the FBAR filing requirement and am submitting this form as soon as I learned of the obligation." The key is acting quickly and voluntarily. Most people in your exact situation who file proactively don't face penalties, especially for non-willful violations where the amounts aren't massive. You've got this!

Recently went through this with my accountant. I refused the outsourcing and found a smaller firm that doesn't outsource. If you're paying premium rates for a CPA, you should get their direct attention imo. The big firms are just getting greedy.

This is such a timely discussion - I'm actually dealing with something similar right now. My CPA of 5 years just informed me they're outsourcing to a firm in another state, and I'm really torn about it. What's particularly frustrating is that they're not offering any reduction in fees despite essentially becoming a middleman in the process. I've built a relationship with them specifically because I wanted that personal touch and local expertise, especially for my small business taxes. I'm curious - for those who switched to firms that don't outsource, did you notice any difference in the quality of service or turnaround times? I'm worried about starting over with a new CPA this close to tax season, but I also don't want to feel like I'm just another file being shuffled around. The transparency issue mentioned here is huge too. My CPA was pretty vague about the details when I pressed them about security protocols and who exactly would be handling my information.

My transcript been saying 'as of' date March 4th for like 2 months now... anyone else?

Looking at your transcript, that code 807 "Reduced or removed W-2 or 1099 withholding" is definitely concerning - it means the IRS removed your $10,557 in withholding credits, which is why you now owe $3,472 instead of getting a refund. This usually happens when they can't verify your W-2s or suspect there's an issue with the withholding reported. You'll need to contact them ASAP to find out why they removed it and provide documentation to get it reinstated. The 971 notices should explain what documentation they need from you.

Guys what about H&R Block? They're running a 25% off promo right now that makes their Deluxe + State about $52 total. Might be cheaper than the TurboTax deals people are finding.

If you're looking for discounts, don't forget to check your local library! Many public libraries offer free access to tax software including TurboTax through their digital resources. I discovered this completely by accident when I was at my library last month - they had a whole section on their website with free tax prep tools. Also, if you're military (active duty or veteran), USAA members get significant discounts on tax software. And some credit card companies offer statement credits when you use their card to purchase tax software - I got $25 back on my Chase card last year which made the effective cost much lower. One more tip: wait until mid-March if you can. That's when a lot of the software companies start getting desperate to hit their quarterly numbers and roll out their best promotions.