Thanks for this tip! My tax preparer didn't mention the self-employment tax deduction at all. Do you know if this is something that gets calculated automatically or do I need to specifically ask about it? Also, can I still set up a SEP IRA for last year's taxes or is it too late now?

Any decent tax software or preparer should calculate this automatically, but it never hurts to specifically ask to make sure it's included. It appears on Schedule 1 of your 1040 as an adjustment to income. You actually can still set up and contribute to a SEP IRA for last year! You have until your tax filing deadline including extensions (so potentially as late as October 15, 2025), though you need to establish the account before filing your return. The contribution limit is either 25% of your net self-employment income or $69,000 for 2024, whichever is less. This is one of the best ways to reduce your tax burden if you have the cash available to make contributions.

The home office deduction used to be a bigger red flag years ago, but it's much more common and accepted now, especially for legitimate 1099 contractors. The key is making sure the space is used "regularly and exclusively" for business. That means no using your office for personal stuff. If you keep good records and photos of your office space and can show it's dedicated to work, you'll be fine. Just be accurate with the square footage calculation - don't claim your entire apartment if you're only using one room!

This is great advice. What specific questions would you recommend asking to really test if they know eCommerce? And did you find someone who charges flat monthly rates or hourly?

This is so important! When I amended from 1040 to 1040NR last year, I discovered my country's tax treaty exempted the first $5000 of my teaching assistant income completely. The tax software I originally used had no idea about this!

Thanks for mentioning Form 8843! Do I need to include that with the amendment even if I already submitted it with my original (incorrect) 1040 filing?

Yes, you should still include Form 8843 with your amendment package even if you filed it with your original return. The amendment is essentially a complete revised return, so all required forms should be included. When the IRS processes amendments, they prefer having all relevant forms together in one package rather than having to reference parts of your original filing. The good news is you can just use a copy of the same Form 8843 you submitted originally (assuming the information on it was correct). No need to complete a new one unless something on it needs correction.

What about retirement accounts in foreign countries? I have something similar to a 401k in Australia, and I've heard conflicting things about how the US treats these accounts.

Foreign retirement accounts are one of the trickiest areas for US expats. Unfortunately, unless there's a specific provision in the tax treaty between the US and your country (like there is for Canadian RRSPs), the US often doesn't recognize the tax-deferred status of foreign retirement accounts. For Australian superannuation accounts, they exist in a gray area. Some tax professionals treat them as equivalent to US retirement accounts, others report them as foreign trusts requiring complex reporting, and others treat them as regular investment accounts. Recent IRS guidance has leaned toward treating them as foreign pension plans, but it depends on your exact situation. I recommend getting specific advice on this issue from a tax professional who specializes in US-Australia tax matters, as getting it wrong can have significant consequences.

Thank you for sharing your experience! It's reassuring to hear from someone who's been through the same situation. I was definitely imagining scenarios where I'd be pulled into secondary inspection and questioned about my tax situation! Did you use the Streamlined Filing Procedures that others mentioned? And how long did the whole process take from starting to get compliant until you were fully caught up with the IRS?

Yes, I used the Streamlined Filing Procedures - it was fairly straightforward but took about 3 months from start to finish. I gathered all my foreign tax documents, bank statements, and employment records first (that was the most time-consuming part). Then I worked with a tax preparer who specialized in expat issues to complete the necessary forms. The actual filing involved submitting 3 years of back tax returns along with a statement explaining why I failed to file (I just honestly explained I didn't understand my obligations as a dual citizen living abroad). For the FBAR forms (reporting foreign accounts), I had to file 6 years worth. About 4 months after submission, I received notices confirming everything was processed. I didn't owe any taxes thanks to the Foreign Earned Income Exclusion and Foreign Tax Credits for taxes I'd already paid in the UK.

Thanks for these suggestions! Is the Bittker book still relevant with all the recent tax changes? And I've tried looking at some IRS publications but found them a bit hard to navigate - any tips on how to use them effectively?

The core principles in Bittker's book remain relevant as they explain the foundational concepts that don't change much. For the newest regulations, you'll want to pair it with current IRS publications. For navigating IRS publications, start with the table of contents rather than reading straight through. They're designed as reference materials. Publication 17 has a great index - identify what topics you're interested in and jump to those sections. Also, the IRS website has a "Tax Topics" section that organizes publications by subject matter which makes finding relevant information much easier.

Free resources are great, but they're often overwhelming for beginners. I tried starting with the free stuff and got lost quickly. Sometimes a well-organized book that builds concepts systematically is worth the money.