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Just a heads up from someone who's been filing as a digital nomad for years - you probably want to look into whether you qualify for the Foreign Earned Income Exclusion (Form 2555). If you spent enough time outside the US (330+ days in a 12-month period), you can exclude a significant chunk of your income from US taxation. Also look into state taxes - some states consider you a resident if you maintain a permanent address there, even if you're physically abroad most of the year. Others will let you file as a non-resident if you can prove you lived elsewhere.
Regarding state taxes - is there any documentation I should keep to prove I was living abroad if my permanent address is still in the US? I'm worried my home state (California) will try to tax me even though I've been in Europe for most of the year.
For state tax residence documentation, keep copies of rental agreements, utility bills in your name from your foreign residence, entry/exit stamps in your passport, and airline tickets. California is particularly aggressive about claiming residents, so you'll want solid proof you've established a temporary residence elsewhere. If you're maintaining any California ties (driver's license, voter registration, bank accounts, etc.), document when those will be changed to your new location. Some digital nomads even take the step of establishing residency in a no-income-tax state before leaving the US, though that requires more planning and legitimate ties to that state.
Has anyone used FreeTaxUSA for filing as a self-employed expat? TurboTax is crazy expensive for their "self-employed" version but I'm not sure which software actually handles all the expat forms correctly?
Something else to consider - if you paid state ESTIMATED tax payments during 2023 (for tax year 2023), those can ALSO be included in your itemized deductions for 2023. So the state tax deduction includes both: 1. Any balance due you paid in 2023 for your 2022 state taxes 2. Any estimated payments you made during 2023 for your 2023 state taxes This sometimes pushes people over the threshold to make itemizing worthwhile.
Wait really? I did make quarterly estimated state tax payments throughout 2023 for my side business. So I can count both those AND the balance I paid in April 2023 for my 2022 taxes? That might actually push me over the standard deduction threshold!
Yes, absolutely! Any state income taxes you actually paid during calendar year 2023 can be included on your 2023 federal Schedule A. This includes both the balance due from your 2022 return that you paid in 2023 AND any estimated payments you made during 2023 for your 2023 taxes. Just be aware there's a $10,000 cap on the total state and local tax deduction (SALT cap), which includes income taxes, property taxes, etc. But for most people, this helps push their total itemized deductions above the standard deduction threshold.
Am I the only one who thinks the tax software should make this clearer? I use TurboTax and it always asks if I want to itemize, but never explains that I should include state taxes I paid last year when making that decision. Feels like they're designed to push people toward the standard deduction because it's easier for them to process.
Totally agree! I've been using H&R Block for years and they never explain this clearly. I've probably left thousands of dollars on the table over the years by taking the standard deduction when I might have benefited from itemizing. The tax prep industry benefits from keeping things confusing.
Thanks for agreeing with me on this! I feel like there should be some kind of requirement for tax software to actively check if itemizing would benefit you rather than just presenting it as an option. I'm definitely going to be more careful this year and run the numbers both ways. Between mortgage interest, charitable donations, and now understanding I can include state taxes paid, I might actually be better off itemizing for the first time.
Don't forget to check if your university offers VITA (Volunteer Income Tax Assistance)! Many campuses provide this free service specifically for students including international ones. I used it last year at my university in Texas, and they had volunteers trained specifically on F1 visa tax situations. They completed all my forms including my 8843 and 1040NR, plus state taxes. Just bring your W-2, passport, I-20, and any other tax documents. It's completely free and they're trained on international student tax issues.
When is the deadline for F1 students to file taxes? Is it the same April 15 date as everyone else? I'm worried I might be late already.
Yes, F1 students have the same tax filing deadline as US citizens - April 15, 2025 for the 2024 tax year. However, even if you don't owe taxes, all F1 visa holders must file Form 8843 by the deadline. If you need more time, you can request an extension until October 15 by filing Form 4868, but remember that an extension only gives you more time to file the paperwork - if you owe any taxes, you still need to pay the estimated amount by April 15 to avoid penalties and interest.
Just wanted to add something important: make sure whatever software you use understands the "Substantial Presence Test" for F1 students! This determines whether you file as a resident or nonresident alien for tax purposes. Generally, F1 students are considered nonresident aliens for the first 5 calendar years in the US, which means you need software that can handle Form 1040-NR, not the regular 1040 that most free software supports. I made this mistake my first year and had to refile everything because I used regular free software that didn't ask about my visa status.
Is there a way to check if you're considered a resident or nonresident alien without going through the entire tax filing process? I've been here for 4 years on F1 and never filed before (yikes, I know).
This might sound obvious, but have you tried using the "Where's My Refund" tool on the IRS website specifically for your 2022 return? My sister had a similar issue and it turned out her 2022 return needed additional verification, but she never received the letter they supposedly sent. Also check if your address changed between 2022 and 2023 - sometimes correspondence gets lost if you moved and the IRS is still using your old address.
Yes, I've been checking "Where's My Refund" for months for my 2022 return. It just says "Your tax return is still being processed" with no other information. I did move in late 2022, but I updated my address with USPS. Do I need to update my address directly with the IRS too?
Yes, you absolutely need to update your address directly with the IRS. The USPS mail forwarding doesn't automatically notify the IRS of your new address. This could definitely explain why you might have missed important letters about your 2022 return! You can update your address with the IRS by submitting Form 8822 (Change of Address). In the meantime, I'd recommend using one of the methods others suggested to contact the IRS directly about your 2022 return - especially now that we know you moved, there's a good chance they've been sending verification requests or other important notices to your old address.
Has anyone actually received a 2022 refund after filing their 2023 taxes? I'm in the exact same boat - still waiting on 2022 money while my 2023 return is already accepted. Getting really worried the IRS will just "forget" about the older refund.
Yes! I received my very delayed 2022 refund about 3 weeks after filing my 2023 taxes. The two systems operate independently so one doesn't affect the other. My 2022 return had some issues with education credits that needed manual review, but they eventually sorted it out without me having to call.
AstroAce
From my 5 years of delivery driving experience, I've found that itemizing works better in specific situations. If you have a gas-guzzling SUV or truck, major repairs in a single year, or high insurance costs, actual expenses often beat standard mileage. I did the calculations both ways last year and itemizing saved me over $800 compared to standard mileage. The key is keeping meticulous records - something many drivers fail at. You need to track EVERYTHING: gas, oil changes, repairs, insurance, car washes, depreciation, even a portion of your garage if you store business supplies in your vehicle overnight.
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Chloe Martin
ā¢Do you include car washes as a deductible expense? I've heard mixed things about whether the IRS considers that maintenance or a personal expense since you'd presumably wash your car anyway.
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AstroAce
ā¢Car washes are definitely deductible as a maintenance expense for delivery drivers! When you're using your vehicle for business, keeping it clean is part of maintaining your professional image and service quality. Just like other expenses, you'd deduct the business percentage based on your business vs. personal mileage ratio. I keep all my car wash receipts and even have a monthly subscription to a local wash service that I deduct at my business use percentage (which is about 78% for me). The key is being reasonable - weekly washes might be justified, but daily washes might raise flags with the IRS.
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Diego Rojas
As an Uber driver for the past 3 years, I've tried both methods and always come back to standard mileage. The tracking is SO much easier, especially with apps that automatically log your trips. The truth is most drivers underestimate their actual mileage, which means they're leaving money on the table if they itemize. I drove 31,450 business miles last year which gave me a huge deduction using standard mileage rate. Itemizing would have been about $2,300 less for my situation, even including a transmission repair I had done.
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Anastasia Sokolov
ā¢What app do you use for automatically tracking miles? I've tried a couple but they either drain my battery or miss trips.
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