You should also look into tracking your business expenses better for next year. I do DoorDash too and deduct mileage (58.5 cents per mile for 2024), part of my phone bill, insulated bags, car maintenance, etc. This lowers your net self-employment income which reduces what you owe in SE tax.

This is a really common confusion for new gig workers! The key thing to understand is that there are actually TWO separate tax calculations happening: 1. **Income Tax** - This is what the standard deduction applies to. Since your AGI of $7,600 is below the $12,490 standard deduction, you owe $0 in federal income tax. 2. **Self-Employment Tax** - This is completely separate and kicks in when you have more than $400 in net self-employment earnings. It's essentially your Social Security and Medicare contributions (15.3% total) that would normally be split between you and an employer. So even though you don't owe any income tax, you still owe self-employment tax on your ~$6,500 in 1099 income. That's where your $350 tax bill is coming from. The good news is you can reduce this by tracking all your business expenses - mileage for delivery driving is usually the biggest deduction. Also definitely look into the Earned Income Tax Credit that others mentioned, as it could help offset some of what you owe!

Reading through all these responses has been incredibly helpful! I'm the original poster (Sebastián) and wanted to thank everyone for the detailed advice. I think I've settled on a combination of strategies based on what I've learned here. First, I'm going to check with my employer about my HSA balance - I'd completely forgotten that hearing aids would qualify for HSA funds, which would be much simpler than the itemized deduction route. If my HSA doesn't have enough to cover the full cost, I'm leaning toward the approach of asking the audiologist about either a shorter trial period or the deposit/delayed payment option that Nolan mentioned. That would eliminate the cross-year timing issue entirely. For anyone else in a similar situation, the key takeaways I'm getting are: 1. Check HSA/FSA options first - they're often better than itemizing 2. Ask audiologists about flexible payment timing 3. Track ALL related medical expenses, not just the device cost 4. If you do file early and claim the deduction, set aside the refund amount in case of amendments 5. Don't let tax anxiety prevent you from addressing your health needs The peace of mind of avoiding potential amended returns seems worth adjusting my timeline slightly. Plus, starting the process in December still gives me time to research different providers and make sure I'm getting the best fit, even if the final purchase happens in January. Thanks again to everyone who shared their experiences and expertise!

This whole thread has been such a goldmine of information! As someone who works as a tax preparer, I wanted to add one more angle that might be helpful - the recordkeeping aspect for medical expenses. Beyond just keeping receipts, I always tell my clients to create a simple spreadsheet tracking all medical expenses throughout the year with columns for date, provider, amount, and what it was for. This makes it so much easier when tax time comes around, whether you end up itemizing or not. For hearing aids specifically, also keep records of any insurance communications showing they won't cover the cost. The IRS sometimes asks for documentation proving that expenses weren't reimbursed by insurance, especially for larger medical equipment purchases. One thing I haven't seen mentioned yet - if you're 65 or older, you might also want to look into whether your state offers any additional tax benefits for hearing aids. Some states have their own medical expense deductions or credits that kick in at lower thresholds than the federal 7.5% AGI requirement. Your plan to check HSA funds first is definitely the right move - I can't tell you how many clients miss out on using their HSA money and end up trying to itemize instead when they could have had a much simpler tax-free purchase!

Just make sure you're actually considered a nonresident alien for tax purposes. The substantial presence test can be tricky - if you were in the US for too many days over the past 3 years, you might still be considered a resident for tax purposes even after moving away.

Great question! I went through this exact situation two years ago when I moved back to Germany but kept my US savings account open. A few additional tips that helped me: 1. Make sure you have Form 1042-S from your bank showing the interest paid - this will help you complete Schedule NEC accurately. 2. Since you're Canadian, definitely claim the treaty benefit on Schedule NEC. The US-Canada treaty typically eliminates tax on bank interest for Canadian residents, so you'll likely owe zero US tax. 3. Keep good records of when you left the US permanently in 2024 - you'll need this date for Schedule OI and it affects your filing requirements. 4. Don't forget that even if you owe no tax due to the treaty, you still need to file the 1040-NR to claim that benefit properly. The process is much simpler than it looks when you only have bank interest. Focus on the personal info, Schedule NEC for the interest income and treaty claim, Schedule OI for the residency info, and you should be good to go!

Just went through this exact process with my consulting LLC that elected S-Corp status. A few key points that might help: 1) You're absolutely right to be frustrated about the $850 fee for zero-activity returns, but unfortunately it's required. However, you can significantly reduce costs by doing some of the prep work yourself. Since you had no business activity, your Form 1120-S will basically be all zeros except for basic entity information. 2) For the EIN notification, I sent a simple letter to the IRS Business & Specialty Tax Line at the Cincinnati processing center. Include your business name, EIN, date of dissolution, and a brief statement that the entity has been dissolved. Keep a copy for your records. 3) Don't forget about your state requirements - many states require a final franchise tax return even with zero activity, and some have specific dissolution tax forms. The penalties for missing these can be worse than just filing them. 4) One money-saving tip: if both LLCs are in the same state and have similar structures, see if your accountant will give you a discount for preparing both final returns together. Mine knocked off about 20% for the second entity since most of the work was duplicated. The whole process is definitely a pain for inactive businesses, but better to close them properly than deal with ongoing compliance issues down the road.

I'm going through a similar situation right now with my small consulting LLC that I'm dissolving. Reading through all these responses has been incredibly helpful - especially learning that you don't actually "cancel" an EIN but just notify the IRS of the dissolution. One thing I wanted to add that might help others: if you're looking to save money on the final tax returns, consider asking your accountant if they offer a flat fee for "zero activity" final returns. I found one who charges $275 for S-Corp final returns when there's literally no business activity to report - just filling in the basic entity info and checking the "final return" box. Also, for anyone else dealing with this, make sure you check if your state has any annual report filings that need to be completed before dissolution. I almost missed my state's final annual report, which would have kept the entity technically "active" even after filing articles of dissolution. The certified mail suggestion for the EIN notification letter is spot on too - that return receipt is your proof that the IRS received your notification. Worth every penny for the peace of mind.

Great thread everyone! As someone who went through this process last year, I wanted to add a few practical tips: 1. **PTIN timing**: While Oliver mentioned PTINs are issued quickly online, be prepared for potential delays during peak application periods (November-January). I'd recommend applying ASAP to avoid any last-minute issues. 2. **EFIN considerations**: If you're just starting out with tax prep, consider whether you actually need your own EFIN right away. Many new preparers partner with established firms or use third-party e-filing services for their first season to test the waters before committing to the full EFIN process. 3. **State requirements**: Mikayla touched on this, but definitely research your state's specific requirements. Some states require separate registrations even if you have a CPA license. California, for example, has its own CTEC registration for non-credentialed preparers, though CPAs are exempt. 4. **Insurance**: Something not mentioned yet - consider professional liability insurance once you start preparing returns for compensation. Your CPA license might provide some coverage, but tax preparation has its own specific risks. Ashley, to directly answer your question: Yes, you need the PTIN regardless of your CPA status, and getting it now will absolutely cover you for the 2024 tax season. The EFIN is only if you want to e-file directly yourself.

One important detail that hasn't been mentioned yet - make sure you understand the difference between getting a PTIN for "occasional" vs "regular" tax preparation. The IRS considers you a tax return preparer if you prepare even ONE return for compensation, so your CPA license doesn't change that requirement. However, if you're planning to prepare more than 10 returns per year, you'll also need to complete continuing education requirements through the IRS Annual Filing Season Program (AFSP) - though as others mentioned, CPAs are exempt from this since you already have CE requirements. Also worth noting: if you decide to go the EFIN route, the IRS now requires you to maintain detailed records of all returns you e-file, including client consent forms and copies of all tax documents. It's a significant administrative burden that many new preparers underestimate. The third-party e-filing route that Sean mentioned really does make sense for your first season to see if you want to commit long-term. One last tip - consider joining your local chapter of the National Association of Tax Professionals (NATP) or similar organization. They often have resources specifically for CPAs transitioning into tax preparation and can help navigate some of these regulatory requirements.