That's exactly what I'm worried about - spending all this money on the setup only to find out the tax benefits are minimal. Did you find any particular jurisdiction or structure that worked better than others? And any broker recommendations that actually accept these kinds of entities?

I eventually switched from Belize to a Seychelles structure which had slightly better terms for satisfying economic substance requirements with algorithmic trading. The key is finding a jurisdiction that clearly classifies algorithmic trading as "active business income" rather than passive investment income. For brokers, I had good experiences with two firms based in St. Vincent and the Grenadines that specifically work with trading companies. They had reasonable documentation requirements and stable platforms. Just be careful - many foreign brokers have great leverage terms but terrible execution quality or withdrawal issues. Always test with small amounts first.

Did you try any of the digital banking solutions specifically for trading companies? I've heard there are some in Lithuania and Estonia that specialize in this.

Thanks for this suggestion! I just looked into the Streamlined Procedures and it seems like I might qualify. My attorney mentioned something similar but called it by a different name and was talking about a much smaller reduction. Do you know if I need a specialized attorney for this or if it's something I can handle myself? The legal fees are adding up fast.

You don't absolutely need an attorney to apply for the Streamlined program, but I'd recommend at least a consultation with someone who specializes in international tax issues. The program requires a detailed narrative explaining why your failure to report was non-willful, and that narrative is critical to acceptance. If your current attorney isn't giving you clear information about the Streamlined program (it's very well-established), you might want to get a second opinion. Many tax attorneys offer free initial consultations, so you could shop around. The penalties at stake are significant enough that good representation is worth it, but you shouldn't be paying for an attorney who isn't experienced with exactly this type of situation.

Is there a time limit on how long the IRS can come after you for these foreign reporting issues? I'm worried now because I inherited a small property in Italy from my grandparents 4 years ago and never reported anything...

Isn't there a risk of getting audited if you claim too many expenses? I'm a new subcontractor and nervous about deducting too much.

There's always a small audit risk with any business deductions, but it's not about claiming "too many" expenses - it's about claiming legitimate business expenses and having proper documentation. Keep good records of everything - receipts, logs, payment statements. The IRS understands that businesses have expenses. As long as they're legitimate and you can back them up if questioned, you shouldn't be worried. It's your right to take all legal deductions you're entitled to! Just don't make things up or inflate numbers, and you'll be fine.

I've been using Stride for the past couple years. It's free and lets you track mileage with GPS plus all your other expenses. You can take photos of receipts right in the app. Really helpful at tax time because you can categorize everything properly for Schedule C.

Can you contribute to both a 401k and an IRA in the same year? And if I already have a 401k at work, can I still deduct traditional IRA contributions?

Yes, you can definitely contribute to both a 401k and an IRA in the same year. They have separate contribution limits. Whether you can deduct traditional IRA contributions when you have a 401k depends on your income. For 2025, if you're single and your modified AGI is below $78,000, you can take a full deduction. Between $78,000-$88,000, you get a partial deduction. Above $88,000, no deduction. For married filing jointly, the phase-out range is $123,000-$143,000. Even if you can't deduct it, you could still do a non-deductible IRA contribution and then convert to Roth (the backdoor Roth strategy).

Does it make more sense to max out your 401k first or your IRA first? My company matches the first 5% in my 401k but the investment options aren't great.

Thanks for mentioning this! I actually did work in January 2023 very briefly before my condition worsened, but it was only about $1,200 in earnings. Is there any way that partial amount would help me qualify even though it's below the $2,500 threshold?

That $1,200 in earnings would count toward the $2,500 threshold, but unfortunately you'd still be short of the minimum needed to qualify for the refundable portion of the Child Tax Credit. You'd need to reach at least $2,500 in earned income to start qualifying. However, it's still important to file a tax return showing this income, especially if you had any withholdings that might be refundable. Plus, having filed returns consistently will help when your disability is approved, as it creates a clearer picture of your work history and the onset of your inability to work.

This is actually not great advice for someone with zero income. Non-refundable credits can only reduce tax liability, and with no income there's no tax liability to reduce. So the Credit for Other Dependents wouldn't help in this specific situation.