Thank you so much for this information! I hadn't even thought about the tax treaty benefits. My home country is India - are there specific treaty benefits I should be looking into when I file the 1040NR?

India does have a tax treaty with the US, and there are some benefits for students. Most notably, Indian students and business apprentices may be eligible to exclude a certain amount of income from US taxation. For students from India, you may be able to exclude income for teaching or research if you meet certain requirements. However, tax treaties are complex and the benefits vary based on your specific situation, status, and type of income. When you file your 1040NR, there's a section where you can claim these treaty benefits (usually on Form 8833).

This is so important! I made the same mistake last year and had to pay back the American Opportunity Credit I'd claimed. The amendment ended up with me owing money rather than getting the refund I initially received.

Do you need to complete the whole application process to see the current amount, or does it show that information early in the process?

You'll see the current amount with penalties and interest fairly early in the process, usually on the second or third screen when you've entered your basic information. You don't need to complete the entire application or commit to any payment plan to view this information.

They used a local tax preparer, not software. That's part of the issue - they just have the paper copies the preparer gave them and aren't tech-savvy enough to navigate online tools themselves. I was hoping there might be a simple way to confirm the current amount without having to call since the phone wait times are so long.

Ugh, I feel even worse now knowing they saw me coming! Was there anything specific that made them charge me so much? I thought maybe it was the EIC calculations that were complicated, but you're saying that's actually simple?

The EIC and child tax credit calculations are completely automated in their software system. It's literally just clicking a few buttons and the computer does all the work. What they did was charge you their "deluxe" or "premium" package rates because you had tax credits. These places train their preparers to identify clients who might have refundable credits because those clients are often less price-sensitive (they're focused on the refund amount, not the preparation fee). They know you're getting a larger refund with those credits, so they take a bigger cut. Next year, remember that your return is actually quite straightforward and any of the major tax software options could handle it for a fraction of the cost.

Try Cash App Taxes next year (used to be Credit Karma Tax). Completely free for federal AND state, no income limits or hidden fees. I've used it for 3 years with W-2s, 1099s, and child credits with no issues.

Property tax reassessment varies by state. In California for example, Prop 19 changed things in 2021 - now inherited family homes get reassessed unless certain conditions are met (like you use it as your primary residence). Texas has different rules. You should check with your specific county tax assessor.

Thank you so much for pointing this out! I think I've been overthinking the "reimbursement" aspect. Since I'm essentially the same tax entity as my business, it makes more sense to just claim the mileage directly on my Schedule C for 2024 rather than worrying about formal reimbursement. This actually simplifies things a lot for me. I've kept detailed logs with dates, miles, and business purposes for all those December trips. Is there anything special I need to note on my tax return about this, or do I just include all those miles in my total business mileage for the year?

You've got it exactly right! Just include those December miles in your total business mileage for 2024 on your Schedule C. There's no special notation needed as long as you have your mileage log with the dates, destinations, and business purposes documented. The key is keeping that detailed log in your records (don't submit it with your return, but keep it in case of an audit). Make sure your log shows the dates were in 2024, and you're good to go. This is actually the most straightforward approach for a single-member LLC/sole proprietor.

Do you use any app recommendations for tracking mileage? I've been doing everything manually and it's such a pain.