


Ask the community...
I'm a tax preparer and I just wanted to add that when listing your business activity description on Schedule C, be specific but concise. Instead of just "Photography," write "Photography Services" or "Professional Photography." This helps the IRS properly classify your business. Also, don't forget to fill out Part IV of Schedule C if you have any vehicle expenses! Many self-employed folks miss this part and it can raise red flags if you claim vehicle expenses without completing that section.
Thank you! That's super helpful about being specific with the description. Would "Professional Photography and Videography Services" be too long for that field? And for Part IV vehicle expenses - I've been tracking my mileage to photo shoots. Is there a minimum amount of business miles before it's worth claiming?
Professional Photography and Videography" Services is a perfect description -'it s clear and specific without being too long. The character limit gives you plenty of room for that.'There s no minimum threshold for claiming mileage expenses - if'you ve legitimately used your vehicle for business purposes, you can claim those miles. Even small amounts add up to deductions that save you money. Just make sure you have a mileage log with dates, destinations, purpose, and miles driven. The standard mileage rate for 2024 is 67 cents per mile, so those trips to photo shoots could add up to a significantdeduction.
Don't forget to claim the home office deduction if you're editing photos at home in a dedicated space! Schedule C Line 30 lets you put the simplified deduction ($5 per square foot, up to 300 square feet). Easiest $1,500 deduction ever if you qualify!
Have you checked with your university's international student office? Many universities have special tax preparation resources specifically for J1 visa holders. My university offered free access to Sprintax, which is designed for non-resident tax filing and handles these transition cases pretty well.
I did check with them initially, but they only provide general guidance and specifically said they can't give tax advice. They did offer Glacier Tax Prep software, but it doesn't seem sophisticated enough to handle my specific situation with the transition from non-resident to resident status mid-year and the First-year election option. They basically just handed me some IRS publications and wished me luck.
That's disappointing but unfortunately common. Many university international offices are worried about liability so they avoid giving specific tax advice. Glacier is okay for simple cases but you're right that it struggles with complex situations like yours. Since you're in Minnesota, you might want to check if they have a VITA (Volunteer Income Tax Assistance) program with volunteers trained in non-resident taxation. Some university law schools also have tax clinics that can help international scholars. Otherwise, it might be worth consulting with a tax professional who specializes in international taxation, especially since this is a transition year that will affect how you file going forward.
Quick tip from someone who went through this: make sure you're calculating your SPT days correctly! As a J1 research scholar, your first 2 years in the US are exempt from counting toward the SPT (that's why you were non-resident in 2022-2023). Starting in your third year (2024), those days start counting. The formula is: all days present in current year (2024) + 1/3 of days present in first preceding year (2023) + 1/6 of days present in second preceding year (2022). When this total exceeds 183, you've met the SPT. But wait! Since you were exempt from counting days in 2022-2023 due to your J1 research scholar status, you're essentially starting fresh in 2024. So you'd need to be physically present in the US for 183 days in 2024 to meet the SPT, which would be around early July if you've been here continuously.
Not quite right. The exemption for J1 research scholars means those days don't count toward SPT, but the calculation is a bit more nuanced. Once you hit your 3rd year, you start counting days, but the lookback period still applies - it's just that the previous years contribute 0 days because they were exempt. The IRS has a calculator on their website that helps with this determination. The main thing to remember is that the transition typically happens around day 183 of your third calendar year in the US (assuming continuous presence).
You're right about the nuance - I oversimplified. The exempt days from previous years are treated as if you weren't present in the US for those days. So in the SPT calculation, those days contribute 0 to the formula. So for someone who entered in January 2022, was present all of 2022 and 2023, but those days were exempt, then in 2024 they'd need to accumulate 183 actual physical presence days to meet the SPT threshold. This is why most J1 research scholars transition to resident status in early July of their third year. The IRS calculator is definitely helpful, but it's important to indicate your exempt status for those previous years when using it.
If you're comfortable with basic tax concepts, I'd recommend just using your state's fillable PDF forms. I had the same issue last year and found that once I actually looked at the state forms, they weren't nearly as intimidating as I thought. Most of the numbers come straight from your federal return, and there are usually clear instructions. The state website should have free fillable PDFs you can type directly into, then print or e-file.
Most state forms require your federal AGI and some calculations from your federal return, right? Do you just copy those numbers over from your federal return? I've always been confused about that part.
Exactly right! You'll need your completed federal return in front of you. Most state forms start with your federal AGI (Adjusted Gross Income), then make state-specific adjustments from there. You literally just copy numbers from specific lines on your federal return. The state instructions will tell you exactly which federal form lines to reference. For example, it might say "Enter amount from Federal Form 1040, Line 11." Some states also have "adjustments" that add or subtract certain items that are taxed differently at the state level. But overall, if you have your federal return completed, you've already done the hard part!
Hang on - have you checked if your state has income tax at all? Not all states do! Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming don't have state income tax, and New Hampshire only taxes investment income. If you're in one of those states, you don't need to file a state return at all!
Good point, but unfortunately I'm in a state that definitely requires filing. I wish I was in one of those no-income-tax states! Maybe someday I'll move lol.
Don't forget that some states with no income tax hammer you in other ways like high property taxes or sales tax. Texas property taxes are brutal! No free lunch when it comes to taxes.
Don't forget that if you're close to the threshold between standard and itemized, there's a strategy called "bunching" that might help. Basically, you alternate years - in one year you bunch together as many deductible expenses as possible and itemize, then the next year you take the standard deduction. For example, if you normally donate $3,000/year to charity, you could instead donate $6,000 in 2024, nothing in 2025, $6,000 in 2026, etc. Same total donations over time, but you might save more on taxes by itemizing every other year.
Does this actually work? Seems like it might flag an audit if your deductions fluctuate wildly from year to year. Has anyone actually tried this strategy successfully?
Yes, this absolutely works and is a completely legitimate tax strategy. The IRS doesn't flag you for audit simply because your deduction method changes year to year - millions of taxpayers switch between standard and itemized deductions regularly based on their financial circumstances. Bunching deductions is a recognized tax planning strategy discussed by CPAs and financial advisors. It works particularly well for charitable contributions because you have control over the timing. Many charities are even familiar with this strategy and can help you set up your donations appropriately. Just make sure you keep proper documentation for the years you itemize.
Just double checking - when figuring out if you should itemize, you also need to consider your state taxes, right? Some states automatically give you a standard deduction equal to your federal deduction, but others let you itemize on state even if you take standard on federal. Might be worth checking?
This is an excellent point that gets overlooked! I live in California and we can itemize on our state return even if we take the standard deduction on federal. Saved me about $400 last year by doing standard federally and itemized on state. OP should definitely check their state's rules. It's not always an either/or situation between the two returns.
Amara Nnamani
Just to add my experience - I filed on January 25th this year and had the same issue with Form 8889 for my HSA. My return was accepted by the IRS two days later despite the watermark. The TurboTax system uses the draft form in your printable/viewable PDF if the final hasn't been released yet, but they submit the proper version to the IRS. It's definitely confusing and they should explain this better! But as long as your return shows as "accepted" in your e-file status, you're fine and don't need to amend because of this.
0 coins
Giovanni Mancini
ā¢How long did it take to show as "accepted" after you filed? I submitted 3 days ago and mine still says "processing"...getting nervous now.
0 coins
Amara Nnamani
ā¢Mine took about 48 hours to show as "accepted." If you're only at 3 days, I wouldn't worry too much yet. The IRS systems get really bogged down during the early filing rush. If you're still showing "processing" after 5-7 days, then it might be worth reaching out to TurboTax support or checking if there are any known IRS processing delays. This time of year, it's not uncommon for things to take a bit longer, especially with forms that were recently finalized.
0 coins
NebulaNinja
Has anyone gotten their refund yet who filed with this Form 8889 issue? I filed on Feb 1, got accepted Feb 3, but wondering if these "not final" form issues might delay the actual refund processing.
0 coins
Fatima Al-Suwaidi
ā¢I filed Jan 29th with the same Form 8889 watermark issue, was accepted on Jan 31st, and just got my refund direct deposited yesterday. No delays at all! Once it's accepted, the form being draft vs. final doesn't seem to matter.
0 coins