Is it true that if your LLC makes less than $400 in a year, you don't have to pay self-employment tax? I heard that somewhere but not sure if it's accurate.

Yes, that's correct. If your net earnings from self-employment are less than $400 for the year, you don't have to pay self-employment tax. However, you still need to report the income on your tax return regardless of the amount. Be aware that even if you don't owe self-employment tax, you might still need to file other forms related to your business activities depending on your situation. And some states do have minimum tax requirements for LLCs regardless of income, so always check your specific state rules.

Is there an app you recommend for tracking business miles? I always forget to log them and probably missing out on deductions.

That's actually really helpful - I had no idea you could split it up like that! How do you decide what portion to take as Section 179 vs regular depreciation? Is there a formula or rule of thumb?

I basically look at my projected income for the year and figure out how much deduction I need to keep myself in a favorable tax bracket. If taking the full Section 179 would push me too far down or waste the deduction, I'll split it up. For most small businesses, it makes sense to take enough Section 179 to get your income to a target level, then save the rest for future years when you might need the deductions more. Your accountant should be able to model this with your specific numbers. It gives you more flexibility than the all-or-nothing approach most people think is required.

Oof, that's rough. How did the IRS find out about the usage change? Did you get audited or was there some kind of reporting requirement I should know about?

Thank you so much for mentioning this! I am pretty sure I'll be getting a refund based on my withholding, but I didn't realize there was actually a 3-year window. That takes some pressure off, though I still want to get this done soon. Do you know if the refund amount stays the same over those 3 years, or does it increase with interest or anything?

Unfortunately, the IRS doesn't pay interest on refunds if you file late. The refund amount stays exactly the same whether you file on time or 2 years late. That's actually why it's always best to file on time even if you're getting a refund - you're essentially giving the IRS an interest-free loan of your money for however long you delay.

I used freetaxusa for a late 2022 return last year. The process is exactly the same as filing on time. The software doesn't change at all - you just select the correct tax year (2023 in your case) and proceed normally. They keep the previous year's software available specifically for late filers.

Did you claim any tax credits like earned income or child tax credit? Those automatically delay processing until at least mid-February because of the PATH Act.

No tax credits like that. Just a standard return with a W-2 and mortgage interest deduction. Nothing complicated! That's why it's so annoying - my husband's return is actually more complex than mine with business income and he gets his refund in like a week. Meanwhile I'm over here waiting 6+ weeks every year for my simple return. Makes zero sense.

I filed Jan 29 and still waiting lol. So much for the "file early" strategy working for everyone 😂

Is there a threshold for this Spanish filing requirement? I have a very small investment account in Spain (under €1000) and wondering if I need to bother with this.

Yes, there is a threshold, but it's based on your income, not account size. If your Spanish-source income is below about €1,600 annually, you're generally exempt from filing the Modelo 210. However, rules can change and there are exceptions, so it's worth double-checking with a Spanish tax advisor if you're uncertain. When I had a similar situation, I found that even though I wasn't required to file in Spain, having documentation from my Spanish bank about any tax they withheld was crucial for claiming my US foreign tax credit correctly. Ask your bank for an annual tax statement ("certificado fiscal anual") to help with your US filing.

Yes, the US-Spain tax treaty does address capital gains. Generally, under Article 13, capital gains from selling stocks are only taxable in your country of residence. So if you're a US resident, technically only the US should tax these gains. However, Spain might still withhold taxes, and you'd need to use Form 1116 to claim the foreign tax credit. As always with international tax, there are exceptions and complications. For example, if the Spanish company derives most of its value from real estate in Spain, different rules might apply.