This is great advice but in my experience these temp agencies are super stingy with reimbursements. Did you have to show them proof of what you were deducting before to convince them?

I didn't have to show previous tax returns, but I did prepare a simple spreadsheet showing my effective income before and after deductions when I was 1099 versus the proposed W2 rate. Made it clear I needed either reimbursement for specific expenses or a higher rate to maintain the same effective income. Most employers understand this math once you lay it out clearly. The key is bringing it up during the initial negotiation phase, not after you've already accepted the rate. I've found being direct but professional works best - "My standard rate accounts for business expenses I previously deducted as a 1099 contractor, including software licenses and equipment. How does your company typically handle these expenses for W2 contractors?

The provision is technically set to expire after 2025, but nobody knows for sure if Congress will extend it or let it revert. Election years make tax planning extra fun lol. Might be worth having a conversation with your clients about whether they'd be open to 1099 arrangements with proper contracts that address their misclassification concerns.

What app do you use to track your travel days? I've been using a spreadsheet but it's getting messy, especially with some quick weekend trips back to the US to visit family.

I use an app called "Travel Days Tracker" - it lets you log entries/exits by country and calculates your total days for tax purposes. Some people also use the Stride Tax app which has a location tracking feature that can automatically log when you cross borders. The spreadsheet works too, but I found having the app on my phone made it easier to log immediately when crossing borders. Whatever system you use, just be consistent. The IRS can request proof of your physical presence, and border crossing records can sometimes be incomplete.

This is a really good point. New York is just as bad as California. I moved to Toronto but kept an apartment in NYC that I use occasionally. NY claimed I was still a full-year resident even though I was physically in NY less than 90 days that year.

Thanks for bringing up the recapture issue - that's something I wasn't aware of. What exactly is the "recovery period" and how long would he need to maintain business use? He plans to use it exclusively for business for at least 5 years. Also, do you know if there's an income limit that might prevent him from claiming the full EV credit? His 1099 income fluctuates year by year.

The recovery period for vehicles is typically 5 years, so your father's plan to use it exclusively for business during that time would avoid recapture issues. If business use drops below 50% during those 5 years, he would need to recapture the excess depreciation taken and report it as ordinary income. Yes, there are income limits for the EV credit. For a single filer, the credit begins to phase out at $150,000 AGI and is eliminated at $160,000. For married filing jointly, those thresholds are $300,000 and $310,000 respectively. With fluctuating 1099 income, he should do some tax planning to see if he'll fall under these limits in the year of purchase. If he's close to the threshold, he might want to consider timing the purchase or implementing strategies to reduce his AGI for that year.

This is an excellent point. The Inflation Reduction Act changed the requirements, and now the vehicle must meet North American final assembly requirements. Additionally, there are critical mineral and battery component requirements that affect the credit amount. Tesla has been adjusting their supply chain to qualify, but it varies by model and can change.

That's a great suggestion! I hadn't thought about involving my representative. Did you just call their local office? And how long did it take them to get back to you with information?

I called their district office, and they had me fill out a privacy release form so they could inquire on my behalf. The whole process took about 2 weeks before they got back to me with confirmation. Most congressional offices have staff dedicated to helping constituents navigate federal agencies. They won't necessarily get the IRS to change their mind on anything, but they can often get status updates and confirmations that regular citizens struggle to obtain directly.

That's really helpful insider info! Do you know if most industry associations allow individual members to contribute to their formal comments? I'm part of the National Association of Tax Professionals but never thought to check if they were commenting on the same rules.

That's a good point! I should double-check the exact amount on the 1099-NEC they're referencing in the notice against what we have. Is there a way to get a transcript of what was reported to the IRS directly from them?

Yes, you can request a "Wage and Income Transcript" directly from the IRS which will show exactly what was reported to them on your behalf! You can get this online through the IRS website by creating an account at irs.gov/transcripts or by filing Form 4506-T. This is super helpful because it shows the exact amounts that were reported to the IRS by third parties (employers, banks, clients, etc). That way you can see if what you have matches what they have. In my sister's case, her client had submitted a higher amount to the IRS than what was on the copy they gave her.

Omg this happened to me too! Spent weeks trying to figure out why the IRS said I underreported when I knew I included everything. Turned out the payment processor filled both boxes with the same amount, essentially reporting my income twice. Such a headache to fix.