Thanks for breaking it down! Is FreeTaxUSA actually accurate though? I know TurboTax is expensive but I'm scared of using something cheap and getting audited or missing out on money I should get back.

FreeTaxUSA is absolutely accurate - I've used it for years including with some complicated situations (rental property, investments, etc). The calculations are all based on the same tax laws regardless of which software you use. Regarding audit concerns, your audit risk is based on what's reported on your return, not which software you use to file it. TurboTax doesn't have any special "audit protection" in their standard packages anyway - they just try to upsell you on that service. The best protection against audits is simply reporting all your income accurately and keeping good records of your deductions.

I used the IRS Direct File pilot program when they expanded it this year. It's completely free and pretty straightforward if you have a simple tax situation (W-2 income, standard deduction). The interface isn't as polished as TurboTax, but it gets the job done and there are absolutely zero upsells or hidden fees. The main limitation is that it only supports certain types of income and credits right now - no self-employment income, no itemized deductions, etc. But if you qualify, it's the most straightforward option.

This is really helpful - I had no idea about the saving clause. Does this mean most treaty benefits don't even apply to US citizens? Are there any common exceptions that might help in a situation with income classification differences?

Most treaty benefits that would reduce US tax don't apply to US citizens because of the saving clause. You're right to be concerned. The common exceptions that might still help you typically include foreign social security benefits, certain pension income, students/teachers/researchers on temporary assignment, and diplomatic personnel. A few treaties have more generous exceptions. Unfortunately, general income classification differences usually aren't excepted from the saving clause, which means the US will likely tax the income according to US rules regardless of the treaty.

But aren't there exceptions to having to file Form 8833? I thought there were some common treaty positions where disclosure wasn't required? The instructions seem to list quite a few exceptions.

This is bad advice and could get the OP in trouble. You can't just form an LLC to deduct volunteer work expenses. For a home office deduction, you need actual business income and profit motive. Volunteer work for a charity explicitly doesn't qualify, and trying to create a business structure around volunteer work could be seen as tax fraud if there's no legitimate business activity.

You're right, I should have been more specific. I wasn't suggesting creating an LLC just for volunteer work - that would definitely be problematic. What I was thinking was if OP had actual animal care services they provided separately from their volunteer work (like dog walking, pet sitting, etc.), then forming a legitimate business around those paid services might allow for some deductions that wouldn't be available otherwise. But you'd need genuine business income and operations, not just restructuring volunteer activities.

Thank you! This is really helpful - I hadn't even thought about things like utilities or cleaning supplies. Do you track the mileage to vet appointments with a specific app or just write it down somewhere?

I just use the notes app on my phone! Nothing fancy. I record the date, where I went, mileage, and purpose (like "Foster dog Bella - vet appointment for vaccines - 12.4 miles"). My tax guy said the IRS appreciates that level of detail. For things like utilities, I calculated the square footage of my foster room as a percentage of my total apartment, then applied that percentage to my utility bills. Keep all your receipts for supplies too - I use a separate folder in Google Drive just for foster expenses and take pictures of everything.

16 Does this $0 AGI trick also apply if you didn't file taxes at all the previous year? I wasn't required to file in 2023 but now need to file for 2024.

3 Yes, that's exactly right! If you weren't required to file in 2023 and didn't file, you would use $0 as your prior-year AGI when filing your 2024 return electronically. The $0 AGI entry works in several scenarios: when you filed previous year returns on paper, when you didn't file the previous year at all, or when you recently filed the previous year's return and it hasn't fully processed in the IRS system yet.

9 I switched from Tax Act to FreeTaxUSA this year and found it much more user-friendly, especially with handling prior year AGI issues. They have a specific section that explains what to do if you filed previous years' returns recently.

Do you know if this works if self-employment is just a side gig? I drive for Uber on weekends but have a regular W-2 job. Would I qualify for a solo 401k to do this rollover strategy?

Yes, this absolutely works with side gig self-employment! I was in exactly your situation - full-time W-2 job but also doing photography on the side with 1099 income. You can open a solo 401k with your self-employment income even if it's not your main job. There's no minimum income requirement to open a solo 401k, though you can only contribute based on your actual self-employment earnings. But for rollover purposes, you can roll in much larger amounts from your traditional IRAs regardless of how much you earn from your side gig. Just make sure you set up the solo 401k before the end of the calendar year.

I've heard horror stories like this! How much extra did you end up owing in taxes because of the mistake?