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Lots of good advice here already, but I'll add one thing nobody's mentioned: If you decide to go the Schedule C route this year (which seems smart for a partial year), you should still open a separate business checking account immediately for your 1099 income. Keep all business income and expenses separate from your personal finances. This will make your tax prep WAY easier and give you a clean start if you decide to form an S-Corp next year. Plus, maintaining this "business separation" is good practice regardless of your legal structure. Also, start making quarterly estimated tax payments! As a 1099 contractor, you don't have withholding anymore. Set aside roughly 30-35% of your contractor income for taxes (federal, state, and self-employment) and make payments through the IRS Direct Pay system. First-year contractors often get hit with a shocking tax bill plus underpayment penalties if they don't do this.
Thanks for this addition - I've been stressing about the estimated tax payments too. Is there a specific percentage I should set aside? I live in Texas so no state income tax, but I'm worried about getting the federal portion right.
Since you're in Texas with no state income tax, you'll want to set aside approximately 25-30% of your 1099 income for federal taxes. This includes both income tax and self-employment tax (15.3%). The exact percentage depends on your total annual income including your W-2 job. If your combined income puts you in a higher tax bracket, you might want to set aside closer to 30-35%. It's always better to slightly overestimate and get a refund than underestimate and face penalties. The IRS has a tax withholding estimator tool on their website that can help you calculate more precisely based on your full financial picture.
I'm confused about something - does forming an S-Corp mean you automatically get taxed as an S-Corp? I thought you could have an LLC but elect S-Corp taxation? Is that the same thing or different?
Oh that makes so much more sense now! So I could form my LLC now and then decide on the tax treatment later? Would I need to do anything special when I form the LLC to prepare for possible S-Corp election later?
Exactly! You can form your LLC now and make the S-Corp election later. When forming the LLC, you don't need to do anything special to prepare for a potential S-Corp election down the road - it's just a tax filing (Form 2553) that you make with the IRS. Just make sure when you set up your LLC operating agreement and banking that you're prepared to handle payroll if you do elect S-Corp status later. The main thing is keeping good records from day one - separate business and personal expenses, track all income and deductions, etc. This will make the transition much smoother if you decide to make the S-Corp election for next tax year. You have until March 15th of the tax year you want the S-Corp election to be effective (or within 75 days of forming the LLC if you want it effective immediately). So plenty of time to see how your income shapes up and make an informed decision.
Your best bet is to do a 1040X amendment ASAP. Don't wait for them to catch it - shows good faith effort to correct the mistake. Plus you'll avoid some of the penalties they might hit you with if they find it first.
this is the way ๐ฏ
I'd definitely file the 1040X amendment sooner rather than later. When I missed a W-2 a couple years ago, I waited for the IRS to catch it and ended up paying interest on the additional tax owed. If you amend now, you might avoid some of those extra fees. The process isn't too complicated - just need to fill out Form 1040X with the corrected information and mail it in. Keep copies of everything for your records!
Anyone know if the OP can just file without the spouse this year (as married filing separately) to meet the deadline, then amend later when the ITIN comes through? Would avoid any concerns about the deadline entirely.
That's actually what I did in a similar situation. Filed my return as married filing separately to meet the deadline, then amended to married filing jointly once my spouse's ITIN came through. It was a bit of extra paperwork but avoided any deadline issues completely. Just make sure you file the amendment within 3 years.
Just to add some reassurance here - I went through this exact situation two years ago with my spouse's ITIN application. Filed about a week late due to similar circumstances with Acceptance Agent availability, and since we were expecting a refund, there were absolutely no penalties or issues. The key thing to remember is that the IRS isn't in a hurry when they owe YOU money - the penalties only kick in when you owe them. Your refund will be delayed by the ITIN processing time (took about 9 weeks in our case), but filing a day or even a week late won't add any additional delays or costs. Don't stress about it - get your W-7 completed properly rather than rushing it. A correctly submitted ITIN application is way more important than meeting the extension deadline by one day when you're getting a refund anyway.
This is such helpful information! I'm in a similar situation planning to move to Turkey later this year. Based on what everyone's shared, it sounds like buying the Apple Watch in the US before moving is definitely the way to go. I'm leaning toward the GPS-only aluminum model to minimize the tax impact. The 20-22% rate is much more reasonable than the 35%+ for cellular models. Plus with that temporary exemption program Sarah mentioned, I might be able to save even more if I time it right. Has anyone dealt with declaring multiple personal electronics when moving? I'll also be bringing my iPhone, iPad, and MacBook. I want to make sure I don't accidentally trigger any red flags at customs by having "too much" tech, even though it's all legitimately for personal use.
Great thread everyone! As someone who works in international tax consulting, I can confirm most of the information here is accurate. One additional tip for anyone planning this move: keep detailed records of when you first started using each device. Turkey's customs officials have become more sophisticated in recent years and sometimes cross-reference social media posts or digital footprints to verify personal use claims. I've seen cases where people had issues because they posted photos of their "new" Apple Watch on social media just weeks before traveling, even though they claimed months of ownership. Also, regarding the material classifications that Natalie mentioned - this is still true in 2025. The customs codes differentiate between aluminum (lower luxury classification) and premium materials like titanium or ceramic (higher luxury tax bracket). The difference can be 5-10% in total tax burden. For those using tools like taxr.ai, make sure you're inputting the exact model specifications including case material, as this significantly affects the final calculation. The tool should ask for these details if it's comprehensive.
Great question! From my experience with Turkish customs, they prefer a combination of documentation rather than relying on just one type. Bank/credit card statements showing the purchase date are definitely helpful, but they're most convinced by evidence that shows ongoing personal use over time. The strongest documentation package typically includes: 1) Original receipt/invoice, 2) Bank statement showing the purchase, 3) Photos of you wearing/using the device in different contexts over several months, 4) Screenshots of personalized settings, apps, or data on the device, and 5) Any warranty registration or service records that show your ownership history. If you have health data from the Apple Watch (like workout history, heart rate trends, etc.) that spans several months, that's particularly compelling evidence of personal use. The customs officials understand that this type of data can't be easily fabricated and demonstrates genuine long-term usage. One more tip: if you have any photos or social media posts from before you bought the Apple Watch where you're clearly NOT wearing one, that can actually help establish a timeline of when you acquired it. It sounds counterintuitive, but showing a "before and after" pattern can strengthen your personal use claim.
Bank statements showing the purchase date are definitely helpful, but Turkey's customs typically prefers a combination of evidence. The strongest documentation package includes: 1) Original receipt/invoice, 2) Credit card/bank statement showing the transaction, 3) Photos of you actually using the device over time (not just unboxing photos), and 4) Digital evidence like iCloud/Apple ID activity logs showing when you first set up the device. For Apple products specifically, you can actually request your Apple ID purchase history which shows activation dates - this has become very valuable documentation since it's harder to fake than receipts. If you have AppleCare+ enrolled on the device, that enrollment date also serves as strong evidence of long-term personal ownership intent. The 3-month rule others mentioned is generally accurate, but I've seen successful cases with shorter ownership periods when the documentation was particularly comprehensive. The key is demonstrating genuine personal use rather than just meeting an arbitrary timeframe.
Giovanni Colombo
If anyone else is confused about timezones like me, I found that most tax software automatically adjusts for your timezone based on your location. I used TurboTax last year and it showed a countdown timer with my local deadline. Just make sure your address info is correct in the software!
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Fatima Al-Qasimi
โขJust be extra careful with this. I used TaxAct last year and their system crashed around 10pm on deadline day. I ended up having to use FreeTaxUSA at the last minute and barely made it.
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Amina Bah
Great question about time zones! As someone who's dealt with this exact situation before, I can confirm that Carmen is absolutely right - it's based on your current legal residence, not where your income was earned. Since you're living in Colorado, your deadline is 11:59 PM Mountain Time on October 15th. One thing I'd add is to double-check that your current address is correctly listed on your tax return, since that's what the IRS uses to determine your time zone. Also, given that you're cutting it close, I'd strongly recommend not waiting until the very last minute on Tuesday evening. The e-filing systems can get overwhelmed on deadline day, and if there are any technical issues or if your return gets rejected for any reason, you might not have time to fix it and resubmit. Maybe consider trying to wrap it up during your lunch break or earlier in the evening if possible? Better safe than sorry with the IRS!
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