Yes, thankfully my parents are super organized with this stuff. They have every receipt, invoice, and payment confirmation from the treatment center. They even have records of the insurance claims that were denied (which is why they had to pay out of pocket). I guess the bigger question is still whether anyone can actually claim these expenses given that I'm not a dependent. Sounds like I need to look more into that "qualifying relative" test that others mentioned.

That's great that your parents kept everything. Those records will be essential if they end up being able to claim the expenses. Definitely look into the qualifying relative test. The main things they'll need to prove are: 1) that they provided more than half your support for the year, 2) that your gross income was below the threshold (around $4,500 for 2025), 3) that you lived with them all year (though there are exceptions for temporary absences including rehab), and 4) that you're related to them. If you meet all those tests, they might be able to claim both you as a dependent and the medical expenses.

This is super important! I learned this the hard way last year. Had about $8k in medical expenses but couldn't deduct a penny because my AGI was too high and the standard deduction was better anyway. Such a disappointment after saving all those receipts.

Does anyone know if you can deduct mileage when you're carrying passengers (like other band members) to gigs? We usually carpool in my van since I'm the one with all the gear space, but I wasn't sure if having others with me affects the deduction.

Yes, you can absolutely deduct business mileage even when carpooling with band members! The key is that the primary purpose of the trip must be business-related, which going to a paid gig certainly is. Having passengers doesn't reduce or eliminate your deduction. In fact, if you're the designated driver for your band and regularly transport equipment and band members, make sure you're also tracking any parking fees and tolls, as these are deductible in addition to your mileage. Just keep good records of dates, locations, and the business purpose of each trip.

I've done this with my $9000 cello. My accountant recommended depreciation rather than Section 179 since I use it for both W-2 and 1099 work. We calculated that I use it about 65% for self-employed gigs and teaching, so I'm depreciating that portion over 7 years. Makes my tax situation more stable than taking one huge deduction in a single year.

We did file our returns, just haven't been able to pay what we owe. But that's good advice for anyone reading who might be afraid to file! Does anyone know if we should adjust our W-4 withholding for this year to prevent owing more next year?

Yes, absolutely adjust your W-4 forms with both of your employers immediately! If you've been underwithholding for 2 years, you're likely still underwithholding now, which means you're digging a deeper hole. You can use the IRS Tax Withholding Estimator on their website to figure out exactly how to fill out your W-4. Also, when you get on a payment plan for your back taxes, make sure you don't miss any payments and that you stay current on this year's taxes. The IRS will cancel your payment arrangement if you fall behind on current taxes or miss payments on your plan.

DON'T DO IT!! Those companies charge thousands of dollars for services you can do yourself for free or at low cost. I paid $3,000 to one of those places and all they did was put me on an installment plan I could have set up myself online. Total ripoff!

Wait this is amazing! We definitely qualify based on those requirements. Does this mean we could potentially reduce our payroll tax burden instead of waiting until we're profitable to use the credits? Our payroll taxes are a huge expense right now.

Yes, that's exactly what it means! Instead of the R&D credit just carrying forward until you have income tax liability, you can use up to $250,000 of it immediately against the employer portion of Social Security taxes (the 6.2% you pay on employee wages). This is particularly valuable for startups and small businesses that are still in growth mode and not yet profitable. You'll claim the credit quarterly when you file your Form 941 payroll tax returns. The election has to be made on a timely filed tax return (including extensions), so make sure your tax preparer knows you want to make this election when they prepare your business return.

This is super important. We got audited last year and the IRS disallowed almost half our claimed R&D expenses because our documentation wasn't specific enough about the technological uncertainties we were trying to resolve. Make sure you have detailed lab notes, design documents, and meeting minutes that clearly show the experimentation process.

9 months?! That's insane. Do you think there's anything that can be done to speed up the process? I was really hoping to get this refund before summer.

Unfortunately there's not much you can do to speed it up. International tax treaty claims get additional scrutiny because they're considered more complex. You can check the status of your amended return on the IRS "Where's My Amended Return" tool, but it just gives basic tracking info. If it's been more than 16 weeks since you filed, you can call and ask about the status, but they'll usually just tell you it's "in process." If you absolutely need the money sooner, you could look into getting a Tax Refund Advance loan from some tax preparation companies, but those usually have fees attached.

This is really important advice. I'd recommend looking at IRS Publication 901 (U.S. Tax Treaties) which breaks down the common provisions by country. The India-US treaty has specific provisions for students, teachers, and various types of income that all have different requirements.