Wow, I didn't realize there was a minimum threshold! So if my expenses bring my net income below $400 for any of those years, I wouldn't owe SE tax for that year? Does that mean I wouldn't need to file at all for those years?

That's right - if your net self-employment income (after expenses) is below $400 for the year, you generally don't owe any self-employment tax for that year. As for whether you need to file at all, that depends on your total income from all sources. For US citizens living abroad, you still need to file a US tax return if your total income exceeds the standard filing thresholds, even if you don't owe any tax due to the Foreign Earned Income Exclusion or foreign tax credits. But if your only US reportable income is below-threshold self-employment income, you might not have a filing requirement. Just be sure to keep good records in case you ever need to prove this.

I think you mean Form 8833 for treaty-based positions? I've had to file those for my Canadian self-employment situation. Form 8966 is for FATCA reporting by financial institutions.

Thanks for that reminder! How much interest did they pay you, if you don't mind me asking? Mine was only $18.42 for a refund that was delayed about 4 months. I wonder if it's even worth reporting such a small amount?

Mine was only $32.16 for a refund delayed about 6 months, but yes, you absolutely should report even small amounts like $18.42! The IRS computer systems automatically match all 1099-INTs against your return, regardless of amount. There's technically no minimum threshold for reporting interest income. Even though it seems insignificant, the IRS notice I received for forgetting to include it cost me far more in penalties and interest than the original amount. Plus, dealing with IRS notices is a huge headache that's definitely not worth risking over a small amount.

It's taxed exactly the same as any other interest income (like from a bank account). It will be taxed at your ordinary income tax rate - not at capital gains rates. So if you're in the 22% tax bracket, you'll pay 22% on that interest. Just report it on Schedule B along with any other interest income you received during the year.

So if box 5 shows $42,500 and box 1 shows $58,300, does that mean my earnings were $15,800? And none of that is taxable as long as I properly indicate it as a rollover when filing?

Yes, that's correct. The difference of $15,800 would represent your earnings in this example. None of it should be taxable as long as you properly report it as a rollover on your tax return. Just make sure that when entering the 1099-R information into your tax software, you indicate it was a direct rollover (which the code G confirms). The software should then handle it correctly as a non-taxable event. The important thing is to still report the 1099-R even though it doesn't create a tax liability.

I used FreeTaxUSA last year for a similar situation. When you enter the 1099-R information, there should be a question specifically asking if this was a rollover. Make sure to select "Yes" for that question. It's somewhere in the middle of the form entry process, after you enter the distribution code.

Thanks for this info! I had no idea the IRS could help with missing W2s or that employers had a deadline for sending them. My company is definitely past that February 15th deadline now so maybe that's why they're being so slow about it. I'll definitely try calling that number. Do you know if there's a way to check online whether my employer has already submitted my W2 info to the IRS? That would save me time on the phone if I could see it's already in their system.

Unfortunately there isn't an online way to check if your specific W2 has been filed with the IRS yet. The only way to get that information is by calling them directly. One thing you might try though is creating an account on the IRS website (if you don't already have one) at irs.gov/account. While it won't show your current year W2 info before you file, it will at least give you access to request a wage and income transcript from previous years, which can be helpful for reference.

This is the most important advice in the thread honestly. The extension is ONLY for filing paperwork, not for paying what you owe! I think a lot of people don't realize this.

What about sales tax? If I spend $12k on equipment but then pay another $1k in sales tax, is that all deductible too?

Yep, sales tax paid on business purchases is generally deductible as part of the cost of the item! So if you're buying $12k of equipment and pay $1k in sales tax, your total deduction would be $13k (assuming you're taking the full deduction in year one with Section 179). Sales tax is treated as part of the acquisition cost of the asset. So if you're deducting the full cost immediately, the sales tax gets deducted too. If you're depreciating the equipment, the sales tax gets rolled into the total amount being depreciated.

I think that's not quite right? If you dispose of business assets, you can claim a loss for the remaining basis. My accountant handled this when I sold some equipment.