This is really helpful - I had no idea about the saving clause. Does this mean most treaty benefits don't even apply to US citizens? Are there any common exceptions that might help in a situation with income classification differences?

Most treaty benefits that would reduce US tax don't apply to US citizens because of the saving clause. You're right to be concerned. The common exceptions that might still help you typically include foreign social security benefits, certain pension income, students/teachers/researchers on temporary assignment, and diplomatic personnel. A few treaties have more generous exceptions. Unfortunately, general income classification differences usually aren't excepted from the saving clause, which means the US will likely tax the income according to US rules regardless of the treaty.

But aren't there exceptions to having to file Form 8833? I thought there were some common treaty positions where disclosure wasn't required? The instructions seem to list quite a few exceptions.

Do you know if this works if self-employment is just a side gig? I drive for Uber on weekends but have a regular W-2 job. Would I qualify for a solo 401k to do this rollover strategy?

Yes, this absolutely works with side gig self-employment! I was in exactly your situation - full-time W-2 job but also doing photography on the side with 1099 income. You can open a solo 401k with your self-employment income even if it's not your main job. There's no minimum income requirement to open a solo 401k, though you can only contribute based on your actual self-employment earnings. But for rollover purposes, you can roll in much larger amounts from your traditional IRAs regardless of how much you earn from your side gig. Just make sure you set up the solo 401k before the end of the calendar year.

I've heard horror stories like this! How much extra did you end up owing in taxes because of the mistake?

16 Does this $0 AGI trick also apply if you didn't file taxes at all the previous year? I wasn't required to file in 2023 but now need to file for 2024.

3 Yes, that's exactly right! If you weren't required to file in 2023 and didn't file, you would use $0 as your prior-year AGI when filing your 2024 return electronically. The $0 AGI entry works in several scenarios: when you filed previous year returns on paper, when you didn't file the previous year at all, or when you recently filed the previous year's return and it hasn't fully processed in the IRS system yet.

9 I switched from Tax Act to FreeTaxUSA this year and found it much more user-friendly, especially with handling prior year AGI issues. They have a specific section that explains what to do if you filed previous years' returns recently.

AVOID THE CHAINS! I worked at one of the big ones for two tax seasons. The training is minimal and they push quantity over quality. Most of the preparers there could handle basic W-2 returns but would be completely lost with brokerage statements or anything remotely complex. For your situation with multiple accounts and a new dependent, you definitely want either an independent EA or CPA. The price difference isn't huge but the expertise gap is massive. The chains often use software that's basically the same as consumer tax software, just with a person inputting the data instead of you.

Thanks for the inside info! That's exactly what I was worried about. I'll start looking for independent pros instead of going to one of the big chains. Been seeing their commercials everywhere so was tempted by the convenience, but sounds like it's worth finding someone with more expertise.

Moving to a different state doesn't change how you report health insurance on your federal taxes. The requirement for qualifying health coverage is federal, not state-specific. The only potential complication would be if you moved to or from a state that has its own individual mandate (like California, Massachusetts, New Jersey, Rhode Island, or DC). Those states might require additional reporting on your state tax return, but it doesn't affect your federal return. As long as you maintained continuous coverage during your move, you're all set for federal tax purposes.

You don't need to worry! When you file jointly, you're just verifying that everyone in your household had coverage. Your wife doesn't need to report you dropping off her plan. The 1095 forms you each receive will show the coverage periods for each person, and as long as you both had continuous coverage (even if through different plans at different times), you're good to go!