This situation is unfortunately more common than it should be, especially with small businesses. Here are some immediate steps you can take: 1. **Document everything** - Take photos of your checks and keep a detailed log of hours worked vs. pay received. This will be crucial evidence if you need to file complaints. 2. **Request a meeting** - Ask your boss for a sit-down conversation about payroll. Come prepared with specific questions: "Can you show me how you calculate my withholdings?" and "When will I receive my W-2 for tax filing?" 3. **Know your rights** - Your employer is legally required to provide you with a paystub showing gross pay, all deductions, and net pay. In many states, this is mandated by law regardless of business size. 4. **Contact your state's Department of Labor** - They can investigate wage and hour violations and often have resources specifically for situations like this. Many have anonymous tip lines. 5. **Start setting aside money NOW** - Assume you'll owe taxes on your full gross income and save accordingly. Better to be prepared than caught off guard. The fact that you never filled out a W-4 is a major red flag. Don't let the fear of losing your job prevent you from protecting yourself financially. Your boss's evasive behavior suggests he knows he's not handling this properly.

This is a really concerning situation, and you're absolutely right to question what's happening. As someone who's dealt with payroll issues before, here are some red flags I'm seeing: 1. **No W-4 form** - This should have been the very first thing you filled out when starting work. Without it, your employer has no legal basis for withholding taxes. 2. **No paystubs** - Even the smallest businesses are required to provide documentation of what's being withheld from your pay. The fact that he's just writing personal checks without any breakdown is highly irregular. 3. **Evasive behavior** - A legitimate employer would be happy to explain their payroll process and show you exactly where your tax money is going. I'd strongly recommend starting with the basics: send your boss a text or email requesting copies of your W-4 and paystubs for all pay periods. Having this in writing creates a paper trail. If he can't or won't provide these basic documents, that tells you everything you need to know. Also, start calculating and setting aside about 25-30% of your gross pay for taxes, just in case. You don't want to be stuck with a huge tax bill if it turns out he's been pocketing your withholdings instead of sending them to the IRS. Your instincts are spot on - trust them and protect yourself!

I'm dealing with the exact same situation right now! International student from Germany, got my first 1042-S this year from a research assistantship, and now the IRS is asking for forms 8805 and 8288-A. This thread has been incredibly helpful - I had no idea this was such a common issue with their automated systems. Based on what everyone's shared, it sounds like the key steps are: 1. Write a clear explanation letter stating you're an international student with no partnership income or real estate transactions 2. Include copies of all relevant documents (W-2, 1042-S, visa documentation, I-20) 3. Clearly mark everything as "INTERNATIONAL STUDENT - 1042-S ISSUE" 4. Send via certified mail with tracking I'm going to try the taxr.ai suggestion first to get help with the explanation letter, and if I can't get through to the IRS by phone myself, I might try Claimyr as a backup. The deadline stress is real when you're dealing with immigration status on top of tax confusion! Thanks everyone for sharing your experiences - this community is a lifesaver for international students navigating the US tax system.

This is such a frustrating but unfortunately common issue for international students! I went through something very similar last year as a PhD student from Canada. The IRS automated system seems to flag any 1042-S and automatically request these forms without considering the context. A few additional tips that helped me beyond what others have mentioned: 1. If you have access to your university's tax preparation software (like TurboTax through the school), print out the tax summary page that shows your income sources. This helps demonstrate that your fellowship/stipend income is properly categorized as scholarship income, not partnership distributions. 2. When you write your explanation letter, explicitly state "I have never been a partner in any partnership" and "I have never owned or sold US real property." The IRS agents processing these letters look for these specific statements. 3. Since you're currently in Brazil, consider having a trusted friend or family member in the US send the documents on your behalf if the deadline is approaching. Just make sure they include a note explaining they're sending on your behalf due to your family emergency. The international student office at MSU should really have standard guidance for this - it's disappointing they're not responding. You might try reaching out to the graduate school directly as they often deal with fellowship tax issues. Don't stress too much - this gets resolved once you send the proper explanation. The IRS just needs clarification that their computer made an error in your case.

Has anyone dealt with rental income specifically across borders? I'm wondering about vacation rental platform payments (like Airbnb) - does it matter if the payments go to a US bank account vs Mexican account? Does that change where the income is considered sourced from?

This is such a helpful thread! I'm dealing with something similar for my sister who just got her Mexican permanent residency but still works remotely for a US company. One thing I learned from our tax attorney is that the timing of when your mom establishes her tax residency status in Mexico matters a lot. If she files the declaration for US primary tax residence early in the tax year, it can help avoid complications later. Also, since she's starting the vacation rental next year, now would be a perfect time to set up proper record-keeping systems for both countries. The Mexican tax authority is getting much more sophisticated about cross-referencing rental platform data (Airbnb, VRBO, etc.) with tax filings. Having clean books from day one will save headaches later. For the rental property specifically, make sure she understands the depreciation rules in both countries - they're calculated differently and this can affect her overall tax strategy significantly.

I'm confused about something - if we're paying our state taxes anyway, why does it matter whether we can deduct them or not? Like we still have to pay them either way right? Sorry if this is a dumb question, I'm new to this tax stuff.

This is such an important topic that doesn't get enough attention! I've been dealing with this exact situation in Massachusetts where our state income tax plus property taxes put us way over the $10k SALT cap. One thing I'd add to the discussion is that even if the SALT cap expires as scheduled, there's no guarantee it won't come back in some form. The revenue loss from unlimited SALT deductions is significant - around $80 billion annually according to some estimates. Given federal budget pressures, I wouldn't be surprised if we see some kind of compromise, maybe a higher cap like $25k instead of unlimited deductions. For planning purposes, I'm assuming the best case scenario (full expiration) but also preparing for the possibility that some limitation remains. It's worth running projections for both scenarios, especially if you're making decisions about major purchases or timing of deductible expenses.

Has anyone used TurboTax to figure this out? I'm in literally the same situation (26, lived with parents most of 2024, made under the threshold) and the software keeps giving me conflicting answers about my status when I try different paths.

I went through this exact situation two years ago! The key thing that helped me was creating a detailed support calculation spreadsheet. I tracked everything - rent value for the months I lived with my parents, groceries they bought, utilities, even car insurance they paid. What surprised me was that the "fair rental value" of living at home was way higher than I expected - like $800/month in my area. When I added up ALL the support (not just cash), my parents had definitely provided more than half my total support for the year, even though I was working. The good news is you have options here. Even if you qualify as a Qualifying Relative, your parents can choose not to claim you if that works better for your family's overall tax situation. But as others mentioned, you'd still need to check the box saying you CAN be claimed. I ended up having my parents claim me because their tax savings were bigger than what I would have gotten filing independently, and they shared some of that savings with me. My advice: sit down with your parents, calculate the actual numbers for both scenarios, and make the decision that benefits your family most overall.