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One option nobody's mentioned yet is TaxHawk - it's basically the same company as FreeTaxUSA but with a slightly different interface. Federal is free and state is $14.99 just like FreeTaxUSA. I've used it for 3 years with multiple 1099s and Schedule C. I like that they don't constantly try to upsell you on stuff you don't need. The interface is basic but gets the job done, and their help content is actually really clear for self-employment questions.
Does TaxHawk handle crypto transactions? I did some small gig work on platforms that paid in Bitcoin and I'm completely lost on how to report it.
Yes, TaxHawk does handle crypto transactions. They have a specific section for it where you can enter each transaction. If you only have a few, it's pretty straightforward to enter manually. If you have a lot of crypto transactions, you might want to use a service like CoinTracker or Koinly first to generate the necessary tax forms, then enter the summary into TaxHawk. For just a few transactions from gig work, the built-in tool should be fine.
Watch out for the Free File income limits! I got burned last year thinking I qualified but my AGI was like $200 over the limit and ended up having to pay. The 2024 filing limit should be around $73k but check the IRS site to be sure. Also, if you go with FreeTaxUSA, search for coupons! I found a 25% off code that brought the state filing down to about $11. Every little bit helps when you're on a tight budget.
Something to consider is whether you can treat this property as a partial business use during the elder care period. If you can document that the property was being used specifically for elder care purposes, you might be able to claim certain expenses as deductible medical expenses. The IRS allows deductions for medical care facilities in some cases. While your situation doesn't fit neatly into the tax code categories, a creative tax professional might be able to help you structure this in a favorable way.
That's a really interesting angle! I did something similar when my father moved in with us. We were able to deduct a portion of our utilities and even some modifications to the house as medical expenses. But I think you need documentation from a doctor recommending the living arrangement for medical purposes.
Has anyone mentioned Section 121(c) partial exclusion? If the primary reason for the sale was your grandmother's death (which counts as an unforeseen circumstance), you might qualify for a partial exclusion of gain based on how long you used it as a primary residence during the 5-year period ending on the date of sale. The formula would be: (shorter of: time used as primary residence during 5-year period OR time between event and sale) รท 2 years ร $250,000 exclusion So even if you don't get the full exclusion, you might get a partial one that could save you significant taxes!
This is really helpful information, thank you! If I understand correctly, I would calculate how long I used it as a primary residence within the 5 years before selling, divide that by 2 years, and multiply by $250,000? In my case, I hadn't lived there personally for about 6 years before selling, so would that mean I get zero exclusion under this calculation?
Since you hadn't lived in the home as your primary residence during the 5-year period before the sale, you're right that the first part of the calculation would be zero. However, there's still potentially the second part - the time between the qualifying event (your uncle's death) and the sale. If the sale was primarily due to your uncle's passing, and you sold within a reasonable time after that event (which sounds like you did since it took about a year to sell), you might still qualify for some level of partial exclusion based on that timing. I'd strongly recommend consulting with a tax professional who can review all the specific dates and circumstances, as the calculations can get quite complex and the IRS rules have some nuances that might work in your favor.
Something everyone's missing here - if you're gambling that much, the casino might have already reported your winnings to the IRS on a W-2G if you hit certain thresholds (like $1,200+ on a slot machine win). If that's the case and you don't file, you're gonna get a nasty letter from the IRS later because they'll know you had that income! Also, make sure your parents know about your gambling income. If it's too high, they might not be able to claim you as a dependent anyway which could mess up their taxes too.
Thanks for mentioning this! I haven't received any W-2G forms yet, but I did have a couple of bigger wins that might have triggered reporting. Would the casino have given those to me right away when I won, or would they mail them later? Also, do you know what the income limits are for my parents to claim me as a dependent? I'm a full-time student.
Casinos typically mail W-2Gs by January 31st for the previous year's winnings, though for larger wins they often complete the paperwork at the time of payout. If you had wins over $1,200 on slots or $5,000 on poker/table games, you should expect to receive them. For your parents to claim you as a dependent while you're a full-time student under 24, there's no income limit, but you must not provide more than half of your own support. The support test looks at who pays for your housing, food, education, etc. - not just your income. So even with your gambling winnings, if your parents still provide more than half of your total support, they can claim you. But if those winnings meant you provided more than half of your own support this year, that could change your dependent status.
Quick tip from someone who used to work at a casino: keep EVERYTHING for documentation. The IRS loves to audit gambling winnings. Save your player's club statements, ATM receipts from the casino, even parking receipts to prove you were there. Create a log of your gambling sessions with dates and amounts won/lost. If you took cash to gamble with, document when you withdrew it. The more records you have, the better position you'll be in if questioned about your winnings vs losses.
Just to add another perspective - I received a 1095-C from my employer too, and none of the monthly boxes were filled in. I called our HR department to ask about it, and they confirmed this is normal. The form is mainly to show that coverage was OFFERED to you, not to document payments. If you look at Part II, there should be codes in line 14 for each month. Those codes tell the IRS what type of coverage was offered. Line 16 codes show your enrollment status. The actual premium amounts don't matter for this particular form.
What about if you switched employers mid-year? I had a job change in August and now I have two 1095-C forms with different codes on them. Do I need to report both or just indicate I had coverage the whole year?
You should report both 1095-C forms since they represent different periods of coverage from different employers. The tax software will ask about multiple forms. The important thing is to show continuous coverage throughout the year. Having two forms is perfectly fine as long as there's no gap between them. If there was a gap, you might need to provide additional information about your coverage during that period. Most tax software walks you through this exact scenario.
Just a heads up - while the 1095-C isn't used to calculate your taxes directly, don't throw it away! The IRS can use this form to verify information if you're claiming premium tax credits or if there are questions about your coverage. I learned this the hard way when my return got flagged for review because the information I reported about my health coverage didn't match what was on my 1095-C (which I hadn't even looked at closely). Took months to resolve!
Kayla Jacobson
3 Has anyone used H&R Block for this type of situation? They advertise that they can handle "complex tax situations" but I'm not sure if that includes non-resident gambling income.
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Kayla Jacobson
โข11 I tried H&R Block last year for my W2G as a non-resident from Germany. Big mistake! The preparer had no idea about the proper treaty rates and almost filed my return incorrectly. I ended up going to a specialist and had to pay twice. Definitely find someone who specifically knows international tax!
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Kayla Jacobson
โข3 Thanks for the warning! I'll definitely avoid them and look for someone with specific international experience. Maybe I should check with my university's international student office for recommendations since they probably deal with this regularly.
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Kayla Jacobson
6 One more thing to consider - if you had SUBSTANTIAL gambling winnings (like over $50k), you might want to look into professional gambler status filing. A friend of mine from Australia did this and was able to deduct travel expenses related to his poker tournaments. Not sure if it applies in your situation but worth asking a specialist about.
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Kayla Jacobson
โข20 Professional gambler status is EXTREMELY difficult to qualify for as a non-resident and can actually create bigger problems! The IRS scrutinizes these claims heavily, and it can trigger effectively connected income treatment which means filing Schedule C and potentially being subject to self-employment tax. It can also affect visa status since technically you'd be "working" in the US. I'd be very careful about pursuing this route without expert guidance.
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