Thanks for mentioning this! I hadn't even thought about retirement accounts. Is one better than the other between SEP IRA and Solo 401(k)? And can I still contribute for 2024 or is it too late?

Solo 401(k) generally allows higher contributions when your income is lower because it has both an "employer" and "employee" contribution component. SEP IRAs are simpler to set up but only allow the "employer" contribution. For 2024 contributions, you can still open and fund both types until your tax filing deadline (including extensions). So if you file for an extension, you could potentially contribute all the way until October 15, 2025 for the 2024 tax year. That gives you plenty of time to figure out exactly how much you can afford to contribute once you know your full 2024 income.

I've used both methods. For my small apartment office (about 100 sq ft), the simplified method gave me $500 deduction ($5 × 100). When I calculated actual expenses (rent percentage, utilities, etc.), it came to nearly $2,200! Definitely worth tracking real expenses if your rent/mortgage is high.

That's what I'm worried about. I really need this job and don't want to burn bridges, but I also don't want to pay extra taxes I shouldn't have to pay. Did you end up having to pay the full self-employment tax before the IRS determination came through?

I actually used Form 8919 when I filed my taxes, which allowed me to only pay the employee portion of the Social Security and Medicare taxes while my SS-8 determination was pending. That way I didn't have to pay the full self-employment tax. If the IRS had eventually determined I was actually a contractor (which they didn't), I would have had to pay the difference later. But it allowed me to file on time without overpaying. My tax preparer was familiar with the situation and helped me with the proper coding on the form.

I tried this approach with my employer last year and it worked! Sometimes people just don't know the rules. I printed out the relevant IRS publication and highlighted the parts about household employees. When I showed them, they were actually relieved to have clear guidance and issued me a correct W-2.

Would you say the same applies for H&R Block? I've always used them in-person because I'm paranoid about making mistakes, but it costs me around $350 each year for what seems like a pretty simple return.

H&R Block's storefront preparers are generally not CPAs but trained tax preparers with varying experience levels. They're in a middle ground - more personalized than software but typically less knowledgeable than a dedicated CPA. For a straightforward return, you're probably overpaying at $350. Their software is on par with TurboTax but much cheaper, around $50-100 depending on the version. If you're comfortable trying software but want some backup, H&R Block does offer a hybrid option where you can start online but get help from a tax pro if needed. Bottom line: If your return is fairly simple, either tax software or the AI tool mentioned would likely be more cost-effective than continuing to pay $350 at H&R Block. But if that peace of mind is worth $250+ to you each year, there's value in that too!

This isn't entirely accurate. The $73k limit is for the IRS Free File program partners, but TurboTax actually left that program last year. They have their own "free" version but it's very limited in what forms it supports. With education expenses and retirement account transfers, OP would definitely get bumped to a paid tier.

Do you know if homeowner's insurance premiums are ever tax deductible? I think I prepaid 14 months at closing and wondering if any of that is deductible anywhere.

Unfortunately, homeowner's insurance premiums aren't tax deductible for personal residences. They're considered a personal expense rather than a deductible housing expense. The only exception would be if you use part of your home for business - then you might be able to deduct the business portion of your insurance. However, if you paid for mortgage insurance premiums (different from homeowner's insurance), those might be deductible depending on your income level and when you got your mortgage. The rules change frequently on mortgage insurance deductibility, so that's worth looking into for your specific situation.

In my experience, most lenders only issue a 1098 if the total interest for the year exceeds $600. If you closed in late December, the few days of interest probably didn't hit that threshold, so they might have just included it in next year's form. You can still deduct it in the correct year though, even without a separate 1098.

1 But if the money is going directly to my US account, would I still need to file an FBAR? I won't actually have a foreign account at all in this transaction - the buyer is wiring the money directly to my account in America.

23 You're right that if the money goes directly to your US account and you never have it in a foreign account, you wouldn't trigger FBAR requirements based on this specific transaction. However, be careful about any other foreign accounts you might have, even temporarily. For example, if you have a foreign account set up to handle any aspect of the sale closing, or if there's an escrow account in the foreign country that you have signature authority over, even briefly, that could potentially trigger FBAR requirements if the amount exceeds $10,000.

16 You might have missed something. Even without a tax treaty, you can usually claim a Foreign Tax Credit on Form 1116 for taxes paid to foreign governments on the same income. Did your tax preparer look into this? It doesn't eliminate all double taxation but should have reduced your US tax liability.