Thanks for mentioning this! Can you explain more about Form 8843? Does everyone who's a nonresident alien need to file it? And what happens if I should have filed it in previous years but didn't know about it?

Form 8843 is for "Statement for Exempt Individuals and Individuals With a Medical Condition." You need to file it if you're claiming an exemption from the substantial presence test because you're a student, teacher, trainee, or have a medical condition that prevented you from leaving the US. If you're a nonresident alien who doesn't fit those categories, you don't need to file Form 8843. But if you should have filed it in previous years and didn't, you should file it as soon as possible. There's generally no penalty for filing Form 8843 late if you don't owe any taxes, but it's important to get compliant.

This is so true! I was a resident alien federally but NY state considered me a nonresident. Made filing really confusing until I figured it out.

Do AP credits from high school count toward these totals? I had like 15 credits before I even started college but I'm not sure if those count toward my "years" for tax credit purposes.

AP credits from high school generally don't count toward your "years" for the American Opportunity Credit. The IRS is primarily concerned with post-secondary education you've completed after high school. The credit is specifically for "the first 4 years of post-secondary education," so your clock starts ticking when you begin taking college courses after high school graduation, regardless of any AP credits you may have earned beforehand.

TurboTax asks a series of questions about your education but doesn't really analyze your transcript or anything. Basically you have to already know what "year" you're in before you start. It asks if you've completed the first 4 years of post-secondary education and you just have to say yes or no.

Do you mind sharing which fulfillment center you use in Wyoming? I'm looking at options and finding it hard to get good recommendations.

I use ShipBob - they have facilities in multiple states including Wyoming. Their address service is an add-on to their fulfillment package. If you're just starting out, ShipMonk is another option that has good rates for lower volume businesses. Both have integration with most e-commerce platforms which makes the setup pretty seamless.

This is so true. My friend tried using a Wyoming address for his business while actually running everything from New York. The NY Department of Taxation came after him for three years of back taxes plus penalties. Cost him over $30k to resolve it.

Thanks for mentioning the national org - I didn't think about that! I just checked our member portal and it looks like they actually do have some resources specifically for chapter treasurers. Apparently they even host a monthly zoom call where they answer tax questions from chapter officers. Do you know how soon after our fiscal year ends we need to file? Our fiscal year follows the academic year and ended May 31st.

The 990-N is due by the 15th day of the 5th month after your fiscal year ends. So with your May 31st fiscal year end, you'd need to file by October 15th. That's good news about your national organization resources! Those monthly calls could be incredibly valuable, especially if you have any fraternity-specific questions that general tax advice wouldn't cover. Many national Greek organizations have dealt with these exact issues across hundreds of chapters for decades, so they often have very specific guidance that's tailored to your situation.

Yeah this is important. My fraternity had to file a 990-EZ even though our income was under 50k because we were classified as a social club not a charitable org. Found out the hard way after doing the 990-N incorrectly for 2 years.

I hadn't thought about the spousal IRA angle - that's a good point if one of us takes time off work. For the head of household vs. MFJ comparison, do you know roughly what income levels the breakeven point would be? We're trying to plan for several scenarios.

The breakeven point between HOH+Single vs. MFJ varies widely based on income distribution, deductions, and credits. Generally, if you both make similar high incomes (like your situation), staying unmarried often provides tax advantages. The MFJ advantages typically shine when incomes are very disparate. For 2024/2025, the standard deduction for MFJ is $29,200 while HOH is $21,900 and Single is $14,600. So HOH+Single combined is $36,500 - already higher than MFJ. But when you factor in the different tax brackets, EITC, child tax credits, etc., it gets complicated. The child tax credit phase-out starts at different income levels for different filing statuses. If one of you might take extended time off work with the baby, that's when marriage often becomes more advantageous tax-wise due to the income splitting effect and spousal IRA.

The capital loss thing is interesting, but only matters if both people have capital losses exceeding $3k individually, right? Otherwise it doesn't seem like an advantage.