Just wanted to add that retirement income is handled specifically in Article 17 of the US-Belgium tax treaty. Depending on what type of pension it is (government, private, social security equivalent), different rules may apply. Most Belgian private pensions are only taxable in the US if she's a US resident (which it sounds like she is), but Belgian government pensions might still be taxable only in Belgium. Without knowing the specific type of pension, it's hard to give definitive advice.

This is such a helpful thread! I'm dealing with something similar for my father who has a pension from the Netherlands. One thing I learned that might help - make sure to check if the Belgian pension system has any tax withholding agreements that could affect how much tax is withheld at the source. In our case, we had to file a form with the Dutch tax authorities to reduce the withholding rate based on the treaty benefits. This made the foreign tax credit calculation much cleaner on the US side. Belgium might have similar procedures that could simplify your mother-in-law's situation. Also, definitely keep detailed records of all the Belgian tax documents - not just for the current year but going back a few years. The IRS sometimes asks for historical documentation when they see foreign income reported for the first time, especially with older taxpayers who might have had unreported foreign income in previous years.

Kind of related question - my wife was technically "employed" all year but on unpaid maternity leave for 9 months. Do we need to file joint or can we file separate since she had no income? Would save us a ton on taxes if we could file separate.

I went through this exact situation two years ago when I was on FMLA leave without pay for most of the year. I put my actual job title (accountant) in the occupation field and had zero issues with the IRS. The key thing to remember is that the occupation field is separate from your income reporting. The IRS uses W-2s, 1099s, and other income documents to determine what you actually earned - the occupation field is mainly for their statistical tracking purposes. Even though it feels weird listing an occupation you didn't actively perform that year, you were still technically employed in that role. It's similar to how someone who's retired might still list their former profession if that's their primary work background, or how students often list "student" even if they had part-time work. Don't overthink it - just put "Software Developer" and move on with the rest of your return. The IRS has seen every employment situation imaginable!

One thing no one has mentioned yet about Section 179 - it's not just about vehicles! I own a small manufacturing business and used it to write off $150k in equipment purchases last year. For equipment, there aren't the same strict limits as vehicles. The real power comes when you combine it with financing. I put 20% down on new CNC machinery, took the full Section 179 deduction (which was actually larger than my down payment!), and now the loan payments are less than the tax savings. Obviously this only works if you actually need the equipment and will be profitable.

Just a heads up for anyone considering a vehicle purchase with Section 179 - you need to be EXTREMELY careful about business use percentages! My buddy got audited last year over his "business" Range Rover. His tax preparer told him he could write off 75% business use, but he couldn't substantiate it with mileage logs. The IRS completely disallowed the Section 179 and hit him with penalties and interest. Now he's paying off a luxury SUV AND a massive tax bill!

ur not alone fam. these delays r getting ridiculous fr fr

Ugh, I feel your pain! I'm dealing with the exact same thing - 570 code since February and absolutely zero movement. The waiting is driving me crazy, especially when you need that money. I've been checking my transcript obsessively too. Have you tried calling early in the morning? I heard 7am is the best time to actually get through to someone at the IRS, though even then it's hit or miss. Hang in there! 🤞

Speaking from experience, your second option is the only sensible choice. I tried the "pay taxes on full revenue" approach my first year in business and MASSIVELY overpaid. An accountant later told me I paid nearly $12,000 more in taxes than I needed to because I didn't properly account for cost of goods sold and business expenses. Even with your messy start, an accountant can work backwards to create reasonable documentation. They can help you establish fair market value for your childhood collection items, properly categorize your convention trades, and track the value added through professional mounting. The IRS actually expects businesses to have proper bookkeeping - paying taxes on full revenue might seem safer but could actually trigger questions about why you have no expenses.

As someone who went through a similar transition from hobby to business, I can't stress enough how important it is to get professional help NOW rather than later. Your situation with the childhood collection, convention trades, and professional mounting creates some unique tax complexities that really need proper documentation. One thing I learned the hard way is that the IRS has specific rules about how you convert personal property to business inventory. For your childhood collection, you'll need to establish a "stepped-up basis" at fair market value when you first started using those items for business purposes. This protects you from having to pay taxes on appreciation that occurred while you owned them personally. The convention trading is actually more common than you think in collectibles businesses, but it needs to be properly documented as barter transactions. Each trade is technically two separate transactions - you're "selling" what you give up and "purchasing" what you receive, both at fair market value. Given your rapid growth ($300 to $9,500 monthly!), you're likely looking at significant tax liability. An accountant specializing in small businesses can help you maximize legitimate deductions you might not even know about - things like the business use portion of your home, streaming equipment, convention travel expenses, etc. Don't wait until tax season. The cost of hiring an accountant now will almost certainly be less than the overpayment or potential penalties from getting it wrong.