Don't forget about state taxes! Even if you understand the federal NRA rules, many states have their own withholding requirements for non-residents selling property. California was brutal with a mandatory 12.3% withholding on top of the federal FIRPTA withholding when I sold my San Diego property. Arizona has their own withholding for non-residents too, I think it's around 2-4% depending on the sale price. Massachusetts might have something similar for your Boston property.

This is such a helpful thread! I'm in a similar situation - moving back to the UK next year and have been stressing about the tax implications of selling my Denver condo. One thing I wanted to add that might help others: if you're planning to maintain any US ties (like keeping US bank accounts or investment accounts), make sure you understand how that might affect your NRA status determination. I learned from my tax advisor that the IRS looks at the totality of your connections to determine tax residency, not just the day count. Also, regarding the substantial presence test - don't forget that days when you're in the US for medical treatment or as a student can be excluded from the count in certain situations. There are some nuances that might help if you're borderline on the 31-day/183-day thresholds. The state withholding point is crucial too. Colorado has its own withholding requirements, and I discovered that some states don't have reciprocal agreements with certain countries' tax treaties, so you might get federal relief but still face state-level complications. Thanks everyone for sharing your experiences - this community is invaluable for navigating these complex situations!

One tip that helped me as a server - fill out a new W-4 and ask for additional withholding on line 4(c). I put an extra $20 per paycheck which isn't much weekly but adds up to enough extra withholding that I don't get surprised at tax time. Most restaurant workers underpay throughout the year without realizing it, especially if you get cash tips that aren't properly reported. That extra withholding covers you.

Hey Paolo! I totally feel your frustration - restaurant taxes are genuinely confusing and you're not alone in this struggle. Here's what's likely happening: That $192 from your $600 paycheck includes federal income tax, Social Security (6.2%), Medicare (1.45%), and possibly state taxes. The high percentage might be because restaurants often withhold based on your current pay period, not accounting for fluctuating schedules or slower weeks. The big issue with your refund getting cut in half is probably the dependent status situation. If you're 23, living independently, and paying your own bills, you might actually qualify to file as independent rather than being claimed as a dependent. This could significantly help your tax situation since you'd get the full standard deduction. Also, restaurant payroll systems sometimes don't handle tipped income withholding correctly. Even if you're not making tons in tips, the system might assume you are and underwithhold accordingly. My advice: 1) Talk to your parents about whether you should still be claimed as their dependent, 2) Consider filling out a new W-4 with your HR person to adjust your withholding, and 3) Keep track of all your tips (even small cash ones) so you're not surprised by unreported income at tax time. Restaurant work taxes are genuinely more complicated than regular jobs, so don't feel bad about being confused!

Does anyone know if selling the property would let me use those accumulated losses? I've been carrying forward losses for like 3 years now and wondering if I should just sell.

Great thread! Just wanted to add that if you're a real estate professional (which has very specific IRS requirements), your rental activities might not be considered passive at all. You need to spend more than 750 hours annually in real estate trades or businesses AND more than half your personal services must be in real estate activities. If you qualify as a real estate professional, your rental losses can offset other types of income without the passive activity limitations. It's a high bar to meet, but worth investigating if you're heavily involved in real estate. Most casual landlords won't qualify, but thought it was worth mentioning since it's another exception to the passive loss rules.

Just my two cents - I'm 21 and I've been doing my own taxes since I was 18 using free tax software. Start doing your own taxes now while they're simple! You'll learn so much and it'll help you understand your finances better. You can always switch to a professional later if your situation gets more complicated (like buying a house, starting a business, etc). The confidence and knowledge you gain from handling your own taxes is super valuable.

For someone your age with a straightforward tax situation, I'd definitely recommend starting with free tax software like FreeTaxUSA or the IRS Free File options. You'll save money and learn valuable skills about your own finances. Your professor's advice about CPAs is good for complex situations, but honestly overkill for a 19-year-old with W-2 income. The tax software today is really user-friendly and walks you through everything step-by-step. It'll ask you simple questions like "Did you go to school?" and automatically apply education credits you qualify for. The biggest advantage of doing it yourself when you're young is that you'll understand what's happening with your taxes. This knowledge becomes super valuable as your financial situation gets more complex over the years. Plus, if you ever do need professional help later, you'll be able to have more informed conversations with them. Start simple now - you can always upgrade to professional help if your situation becomes more complicated with things like business income, investments, or major life changes.

Wait, I think I've been doing this wrong for years then... I've been skipping some business deductions because I thought I couldn't claim them unless I itemized! So you're saying even with standard deduction I can still write off all my business expenses on Sch C?

This thread has been incredibly helpful! I had the exact same confusion when I started my consulting business last year. The key insight that finally clicked for me is thinking of it as two completely separate "buckets": **Business Bucket (Schedule C):** All your legitimate business expenses go here - office supplies, equipment, travel, professional services, etc. This reduces your business profit before it even touches your personal tax situation. **Personal Bucket (Schedule A vs Standard):** This is where you decide between listing personal deductions like mortgage interest and charitable donations OR just taking the standard deduction. The magic is that these buckets don't interfere with each other at all! Your business expenses reduce your business income on Schedule C, and then that reduced net profit flows to your personal return where you make a completely separate choice about standard vs itemized deduction. I wish someone had explained it this simply when I was first starting out - would have saved me so much stress and confusion!