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.

Pro tip: if you want less tax withheld from your bonus, increase your 401k contribution just for that paycheck if your company allows it. I put 50% of my bonus straight into 401k last year and it lowered my taxable income. Double win!

This is actually a really important point! My bonus pushed me into a higher tax bracket last year because it came in December. If it had come in January, my tax situation would have been completely different. Timing matters!

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.

Do they really count retirement accounts? I thought those were protected. I have about $45k in my 401k but didn't think that would count against me for an OIC calculation.

Yes, they absolutely consider retirement accounts in your OIC calculation. While you're right that they can't directly seize most retirement accounts, they still view them as assets that could be used to pay your tax debt. The IRS typically includes a percentage of retirement account values in your "reasonable collection potential" calculation. They don't necessarily expect you to cash them out (especially given the penalties), but they do factor them into what they think you could potentially pay. This is one of the most common misunderstandings that leads to OIC rejections.

They apply any payments you've made toward your tax debt, they don't just keep the money. So if your offer gets rejected, that 20% payment (or whatever payments you've made) will reduce your overall tax debt. It's not lost money.

Thanks for the advice! Do you recommend any specific accounting software that's not too complicated for beginners? Also, can I just open a regular personal checking account for this or do I need a formal "business" account?

For beginners, I'd recommend something simple like Wave (it's free) or QuickBooks Self-Employed if you want something more robust but still user-friendly. Both let you track income and expenses, and can generate reports you'll need for taxes. For the bank account, a regular personal checking account works fine when you're starting out, but open one that's ONLY used for your business transactions. This makes tracking much easier and creates a clear separation that's helpful if you ever get audited. As you grow, you might want to upgrade to a proper business account for more features, but that's not necessary right away.

This is so confusing... how do you even figure out which states you need to pay tax to if you're selling online to people all over?