For anyone dealing with old tax debts, I can't stress enough how important it is to get your exact assessment dates and Collection Statute Expiration Dates (CSED) from the IRS. I was making payments on what I thought was a 2009 debt for years, only to find out it had actually expired in 2019! The key is understanding that the 10-year clock starts when the IRS officially assesses the tax - not when you file or when the tax year ends. For substitute returns (SFRs) that the IRS files for you, this can be years after the original tax year. For returns you file late, it's when they process your late filing. What really helped me was getting my Account Transcripts online through IRS.gov. Look for codes like "150" (which shows the assessment date) and "434" (which shows the CSED). These dates are crucial for planning your strategy. If you're close to the expiration date, you might want to avoid certain actions that could extend the statute. Just remember - the IRS won't voluntarily tell you when a debt expires. They'll keep sending notices and trying to collect even after the 10 years are up. It's your responsibility to know when the collection period ends and to assert this defense if they try to collect on expired debt.

This is such valuable information for anyone dealing with old tax debt! I've been struggling with IRS debt from 2009 that I didn't file until 2014, so based on what everyone is saying here, my 10-year clock probably started in 2014 when they processed my late return. What really concerns me is reading that the IRS will keep trying to collect even after the statute expires. That seems incredibly misleading - how are taxpayers supposed to know their rights if the IRS doesn't inform them when collection periods end? I'm definitely going to request my account transcripts and look for those 150 and 434 codes that Alice mentioned. It's frustrating that we have to become tax law experts just to understand when our own debts might be uncollectible, but this thread has been more helpful than hours of trying to get through to the IRS phone lines. Has anyone here actually had success getting the IRS to stop collection on an expired debt? I'm curious how difficult it is in practice to get them to acknowledge when the 10-year period has passed.

Don't forget about currency conversion fees! When I transferred my savings from Europe, my bank charged me an outrageous amount. Check if your bank has a partner bank in the US - sometimes they offer better rates. Or use a service like Wise or OFX for better exchange rates. I ended up losing almost $800 in fees and bad exchange rates because I didn't look into this first!!

One thing I haven't seen mentioned yet is the timing of when you transfer the money. If you're planning to transfer a large amount, consider spreading it across multiple smaller transfers over a few months rather than one big lump sum. This can help avoid triggering automated bank reporting systems that might flag large international transfers. Also, make sure to keep records of the exchange rates on the day you transfer - you might need this information for tax purposes later. The IRS uses specific exchange rates for different dates, and having your own documentation can save headaches if there are any questions about the USD equivalent value of your foreign earnings. Finally, if you haven't already, consider opening your US bank account first and letting it "season" with smaller deposits before doing the big transfer. Some banks are more comfortable with large international transfers when they already have a relationship with you.

This is actually ideal! A small refund means you had access to more of your money throughout the year instead of giving Uncle Sam an interest-free loan. I always aim for owing/receiving less than $100 when I file. If you want a bigger refund next year, you can adjust your W-4 to withhold more from each paycheck. But personally I'd rather have that money in my bank account earning interest all year.

Congrats on having such accurate withholding! I know it feels disappointing when you're expecting a bigger refund, but a $12 refund actually means your payroll department nailed it almost perfectly. One thing to double-check though - make sure you claimed all eligible deductions and credits. Did you contribute to a traditional IRA or 401k? Any student loan interest payments? Charitable donations? Sometimes people miss these and leave money on the table. Also, tax laws do change from year to year, so what gave you a bigger refund in previous years might not apply anymore. The standard deduction has increased significantly in recent years, which is generally good, but it also means some itemized deductions that used to help might not be as beneficial now. If everything checks out, then honestly you should feel good about this! Your withholding was spot-on, which means you had more money in your paychecks throughout the year instead of giving the government an interest-free loan.

I think there's some confusion here. I run an LLC too and I have to get W-9s from all my clients before I can work with them. My accountant said it's required!!

I went through this exact same confusion when I transitioned from solo contractor to LLC with employees! The key thing to remember is that W-9s flow in the direction of payments - you collect them from people you PAY, not from people who pay you. As an LLC with employees and contractors, here's what you need to do: 1. Collect W-9s from your independent contractors (before you pay them) so you can issue 1099-NECs if you pay them $600+ annually 2. Have your own completed W-9 ready to provide to clients who request it (usually larger businesses that might need to issue you a 1099) 3. You generally don't need W-9s from regular customers who buy your products or services The confusion often comes from remembering when you were a solo contractor - back then, you were providing YOUR W-9 to the businesses that hired you. Now that you're the business owner, the roles have flipped. You're collecting W-9s from contractors you hire, and providing yours only when clients specifically request it. This is a really common point of confusion for growing businesses, so don't feel bad about needing clarification!

One thing that might help clarify this - think of it as two separate tax systems that don't really "talk" to each other during the calculation process. Your federal tax is calculated on your full gross income ($135k in your case), and your state tax is also calculated on that same gross income. The only place they interact is if you choose to itemize deductions on your federal return, where you can deduct up to $10,000 of state and local taxes paid. But with the current standard deduction amounts, most people come out ahead just taking the standard deduction anyway. So to directly answer your question - neither is calculated "first." They're calculated independently on your gross income, and then you get to choose the most beneficial approach (standard vs itemized) when filing your federal return.

Just to add some practical perspective here - I went through this exact confusion when I started making similar income. The key thing that helped me was realizing that your employer's payroll system handles the withholdings simultaneously, but your annual tax liability is calculated separately for each jurisdiction. For planning purposes at your $135k income level, you'll likely pay federal tax on the full amount (after standard deduction of around $14,600 for 2025), and state tax on the full amount too. The withholdings from your paycheck should roughly balance out what you owe when you file, assuming your W-4 is filled out correctly. One tip: if your state tax rate is 9.5% like you mentioned, you might want to run the numbers on itemizing vs standard deduction. With high state taxes plus any mortgage interest, charitable donations, etc., you could potentially exceed the standard deduction threshold and benefit from itemizing (which would let you deduct up to $10k of those state taxes).