One important thing nobody's mentioned yet - if you use the physical presence test, you need to file Form 2555 with your tax return. Make sure you fill out Part III (Physical Presence Test) completely, not Part II (Bona Fide Residence Test). Also, remember that the FEIE only applies to earned income (salary, wages, self-employment), not investment income. And the max exclusion for 2022 was $112,000, but it's prorated if your qualifying period doesn't cover the whole year.

For your 2022 situation, the physical presence test is definitely your best option since you moved abroad mid-year. You'll need to count 330 full days in any 12-month period - I'd suggest using March 3, 2022 to March 2, 2023 as your qualifying period. A few key things to watch out for: travel days to/from the US don't count as full days abroad (you need to be outside the US for the entire 24-hour period), but partial days at the beginning/end of your qualifying period can count if you were already abroad or stayed abroad. Since you mentioned taking vacations and visiting the US twice, make sure to carefully count those US days. Even if you went over the 35-day limit for US presence, you can still qualify as long as you have 330 full days outside the US within your chosen 12-month period. For 2022, your exclusion will be prorated based on how many days of your qualifying period fall within the tax year. So if your qualifying period is March 3, 2022 - March 2, 2023, you'd get about 304 days worth of the $112,000 exclusion for 2022 (roughly $93,400 max exclusion). Document everything well - keep all travel records, passport stamps, and proof of your Netherlands residence!

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.

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.

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!

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.