Thanks for this! I had no idea about Form 8843 being required even without income. Do you know if there's a deadline difference for that form compared to the regular tax filing deadline?

The Form 8843 follows the same deadline as your tax return, which is generally April 15th for the previous tax year. However, if you don't have any income to report and are ONLY filing Form 8843 (no 1040-NR needed), then you actually have until June 15th to submit it. Since you mentioned having research assistant income, you'll need to file both Form 8843 and Form 1040-NR by the April 15th deadline (unless you file for an extension). Make sure you keep copies of everything you submit - international student tax records can be important for future visa applications or if you eventually apply for permanent residency.

Most free services don't support Form 1040-NR which international students need to file. I tried FreeTaxUSA last year and had to stop halfway when I realized it wasn't designed for nonresident aliens. Ended up using Sprintax which costs money but handles both federal and state correctly for F1 students.

That's good to know about responding within the deadline regardless. My notice says I have until May 3rd to respond. Do you know if a partial response is better than nothing if I'm still gathering all my documentation?

Absolutely - a partial response is much better than no response. Just make sure to clearly state in your letter that you're still gathering additional documentation and will submit it as soon as possible. I'd suggest sending what you have by the deadline along with a letter explaining your situation and requesting an extension for the remaining documentation. Be specific about what additional records you're trying to obtain and when you expect to have them. The key is showing the IRS you're actively working on resolving the issue, not ignoring it.

This is super important advice! Happened to me with Kraken - they sent a corrected 1099 but the IRS used the original incorrect one for my CP2000 notice. Took me forever to straighten out.

Doesn't creating an LLC and doing the S-Corp election cost a lot in administrative fees? I've heard you need to run payroll and everything. Is it really worth it for just one property?

You're right that it doesn't make financial sense for just one property. The administrative costs (state filing fees, payroll service, possibly a CPA) would likely outweigh the tax benefits until you have multiple properties generating significant income. For a single property, increasing your W-4 withholding or making quarterly estimated payments is definitely more cost-effective. I'd say the S-Corp approach usually starts making sense around 3-5 properties or when rental income exceeds about $40,000 annually. Until then, the simpler approaches others have mentioned are your best bet.

This is really important. Depreciation is actually required by the IRS even if you don't claim it. And they'll hit you with depreciation recapture taxes when you sell regardless. So definitely claim it!

That exclusive use requirement is so tricky! I have a home daycare and the IRS has different rules specifically for daycare providers. We can claim spaces that have mixed use (like kitchen, bathroom) based on time used for business. I wonder if there's any similar exception for pet boarding? Might be worth looking into.

That's a really good point. Do you think I need to file amended returns for previous years? Or could I just start doing it correctly going forward? I'm a bit worried about opening a can of worms if I start amending returns.

Generally, if you discover an error on past returns, you should file amended returns. However, there's a 3-year statute of limitations on most tax issues, so you'd typically only need to amend returns from the past 3 years. That said, this isn't necessarily a black-and-white error. There are legitimate situations where rental arrangements between yourself and your business can be appropriate, especially if you have the right business structure. Before amending anything, I'd recommend getting that third opinion from someone who can look at your specific situation. If you do need to amend, a tax professional can help you present the changes in the most favorable light, possibly reducing or eliminating penalties. Sometimes when you self-disclose and correct issues, the IRS is more lenient than if they discover the issue during an audit.

Thanks for mentioning this. I do have 2 qualifying dependents (my kids), and I'm 32, so I should be eligible. Does the amount of unemployment I received last year affect my eligibility at all? Or is it just about the earned income portion?

You're definitely eligible with your two qualifying dependents and being over 25. The age requirement is only an issue for people without qualifying dependents. The amount of unemployment you received doesn't affect your EITC eligibility directly because unemployment benefits don't count as earned income. EITC is specifically based on earned income (like wages, salaries, tips, or self-employment). Your unemployment benefits still count as income for other tax purposes, but for EITC calculations, only your $1,300 in earned income would normally be considered - which is why using last year's earned income through the lookback provision would likely benefit you significantly.

In FreeTaxUSA, you have to go to the "Credits" section, then look for "Earned Income Credit." There should be a question asking if you want to use your 2023 earned income instead of your 2024 earned income. It's not super obvious but it's definitely there! I just did mine last week.