That's a really good point about currency risk that I hadn't considered! Do you know if there are any tax-efficient ways to manage currency conversion when sending money back to the US? I'll still have some student loans and a car payment in USD.

There aren't specific tax advantages for currency conversion, but you might want to look into services like Wise (formerly TransferWise) or OFX for better exchange rates than banks offer. The conversions themselves aren't tax events unless you're actually trading currencies as investments. For your US debts, you might consider keeping a US bank account open and periodically transferring larger sums to minimize conversion fees, rather than monthly smaller transfers. Some expats also maintain US credit cards for US-based recurring payments while living abroad, which can simplify things.

This is so important and often overlooked! I worked in Canada for 7 years and then moved back to the US. When I applied for Social Security benefits, they initially calculated without my Canadian work history. I had to specifically request they consider the totalization agreement, which increased my monthly benefit by about $300!

Do they have good support if you get stuck on something? I'm worried about messing something up and getting audited.

Their support is decent but not as comprehensive as TurboTax's. They have email support that usually responds within a day and a good knowledge base with articles explaining most common tax situations. The audit risk is pretty minimal if you're just reporting things accurately. The software does have accuracy checks built in that will flag anything that looks unusual or might trigger an audit. I was nervous my first year too, but it really walks you through everything step by step. If your tax situation is fairly straightforward (W-2 income, mortgage, charitable donations), you should be fine. The peace of mind might be worth paying a bit more for TurboTax if you're really worried, but I found FreeTaxUSA perfectly adequate.

You can definitely still find an accountant this time of year, but many good ones are already at full capacity. I'd start calling around asap. My sister just switched in February and found someone, but she had to call 8 different places before finding one accepting new clients.

What if your contract says you're a contractor but the company treats you more like an employee (making you work specific hours, etc)? Does the contract override how they actually treat you?

The contract doesn't override reality. The IRS looks at the actual working relationship, not just what the paperwork says. This is called the "economic reality test." If a company is controlling when, where, and how you work, requiring you to work certain hours, closely supervising you, providing equipment, and treating you like an employee in practice, the IRS will consider you an employee regardless of what your contract says. Many companies try to save money by misclassifying employees as contractors, but the actual working relationship is what matters.

I filed SS-8 last year. Takes FOREVER (like 6-8 months) to get a determination, but when I finally did, the company had to reclassify me and pay all the back employment taxes. They weren't happy lol but it solved the problem permanently.

Would moonlighting at an urgent care for even just a few shifts count for this? I'm in a similar situation (different professional liability insurance though) and wondering if even just a few thousand in 1099 income would help establish the business intent.

Yes, moonlighting at an urgent care as a 1099 contractor would absolutely help establish business intent. Even just a few shifts generating a couple thousand dollars would create a much stronger case that you were genuinely engaged in business activity related to the insurance expense. The key is making sure you're actually classified as an independent contractor (receiving a 1099) rather than a part-time employee (W-2). As long as you have some legitimate 1099 income from medical work, you'll be in a much better position to justify the large deduction on Schedule C.

Thank you so much for this insight! I hadn't even considered the self-employment tax angle. The more I think about it, the more I'm leaning toward filing Schedule C with the full expense. I actually do have some very minimal income (around $3K) from chart reviews I did while transitioning between jobs. That should help establish business intent, right? I'm thinking I'll use some combination of the advice here - documenting everything thoroughly, including my correspondence with the locums company about credentialing, and making sure I'm prepared in case of an audit. The tax savings between Schedule C vs. effectively no deduction on Schedule A is just too significant to ignore.

Is Publication 901 updated for 2024 yet? I checked a few weeks ago and they still had the 2023 version online. Also, do you know if non-residents can claim education credits like the American Opportunity Credit? I took some classes last year.

You're right that the official IRS website still has the 2023 version, but they don't typically update Publication 901 every year - only when treaty provisions change significantly. The 2023 version should still be applicable for most countries for your 2024 taxes. For education credits, non-resident aliens generally cannot claim the American Opportunity Credit. However, if you're from certain countries with specific education provisions in their tax treaties (like China, India, or several European countries), you might qualify for different education-related benefits. You'll need to check the specific article in your country's treaty that addresses students or education expenses.

Yes, you can e-file a 1040NR but not with every software. I used OLT.com (OnLine Taxes) last year and was able to e-file my non-resident return. Sprintax also supports e-filing for 1040NR. Most free options don't support it though.