Has anyone managed to get this right using the Free File Fillable Forms? I'm having the same negative AGI issue and I can't figure out which form is causing the problem. Is it Schedule 1 or Form 2555 that I need to fix?

I had this exact same issue last year! The negative AGI is definitely not normal and indicates an error in how you're entering the foreign earned income exclusion. What's happening is that Free Fillable Forms is applying the full $121,500 exclusion amount against your $95,000 income, creating a negative $26,500 AGI. You should only exclude what you actually earned abroad ($95,000 in your case). On Form 2555, make sure you're entering your actual foreign earned income amount, not the maximum allowable exclusion. The form will automatically limit it to the annual maximum, but it can't exclude more than you actually earned. Once you fix this on Form 2555, it should carry over correctly to Schedule 1 and your 1040, eliminating the negative AGI. This is a really common mistake with the FEIE - I think a lot of people assume you should always claim the maximum, but that's not how it works.

Random question - does anyone know if guaranteed payments from an LLC taxed as a partnership qualify for QBI? I've heard conflicting things.

This is such a helpful thread! I'm in a similar situation with my single-member LLC and have been stressing about getting the QBI calculation right. One thing I want to add that might help others - make sure you're using the correct SE tax amount in your calculation. The "50% of SE tax" that gets deducted from your QBI should match exactly what you deduct on Form 1040 line 15 (the deductible portion of self-employment tax). I made the mistake of using 50% of my total SE tax liability instead of the actual deductible portion, which threw off my entire QBI calculation. The deductible portion is slightly less than 50% due to how SE tax is calculated. Also, for anyone using tax software, double-check that your health insurance premiums are properly coded as self-employed health insurance. If they're mistakenly categorized as a business expense on Schedule C, you could be double-deducting them in your QBI calculation.

Has anyone dealt with a W2 that shows incorrect visa status? My employer put "resident alien" in Box 15 even though I'm on a J1 and should be a nonresident for tax purposes. I'm worried this will mess up my tax filing.

As someone who went through this exact situation last year, I can definitely relate to your confusion! The key thing to understand is that J1 visa holders are generally considered "nonresident aliens" for tax purposes during their first two years in the US, which means you'll likely need to file Form 1040-NR instead of the regular 1040. Since you're from Brazil, you'll want to look into the US-Brazil tax treaty provisions. Brazil has a tax treaty with the US that may provide some benefits for students, researchers, and trainees. You'll need to review IRS Publication 901 to see which treaty articles might apply to your specific situation. A few important things to remember: - You'll definitely need to file Form 8843 (Statement for Exempt Individuals) regardless of whether you owe taxes - Your W2 income will be reported on your 1040-NR, and the withholding amounts look reasonable for your income level - If you qualify for treaty benefits, you'll need to file Form 8833 to claim them I'd strongly recommend checking with your research lab's international office or HR department - they often have resources specifically for J1 visa holders dealing with taxes. Many universities also provide free tax preparation assistance for international students and scholars. Don't stress too much - while it seems complicated at first, once you understand the basics of nonresident filing, it becomes much more manageable!

Has anyone tried to get around this by forming an S-Corp? My buddy claims he saves thousands by having his construction company pay his S-Corp instead of him directly, and then all his tools are business expenses.

The elimination of unreimbursed employee business expense deductions really hit trades workers hard. For your $2,800 in tools and $350 in uniforms, here are your realistic options: **Immediate solutions:** - Ask your employer about setting up an accountable plan for reimbursement. This makes the expenses tax-free to you and deductible for them. - Check if your state still allows these deductions on your state tax return (many do). - If you do any side HVAC work as a contractor, those tool expenses can be deducted against that 1099 income on Schedule C. **Documentation is key:** Keep all receipts regardless. Tax laws could change after 2025, and good records help if you transition to contractor work or start a side business. **Reality check:** For W-2 employees, there's unfortunately no federal workaround that doesn't involve actual changes to your employment structure or getting employer reimbursement. The accountable plan route is honestly your best bet - many employers are willing once they understand it benefits them too. Don't get caught up in complex entity structures unless you're genuinely ready to become an independent contractor with all the risks and responsibilities that entails.

Just FYI - make sure your tax team is giving you correct advice. My "tax specialist" told me to withhold 30% for my IRS payment plan, but it turned out that was WAY too much for my situation and I was giving the government an interest-free loan for months. Every tax situation is different, and 25% might be too high or too low depending on your specific case. Might be worth getting a second opinion from a CPA who specializes in tax resolution before adjusting your withholding dramatically.

I've been through a similar W-4 adjustment situation and wanted to share what I learned. The key thing to understand is that step 4(c) is for ADDITIONAL withholding on top of your normal federal taxes. If you put $2,333 in step 4(c), your employer will withhold your regular federal taxes PLUS an extra $2,333 per month. This will likely result in much more than 25% total withholding. Here's what I'd recommend: 1. Calculate your current withholding percentage by looking at recent pay stubs 2. Figure out how much additional you need to reach exactly 25% 3. Put only that additional amount in step 4(c) For example, if you're currently withholding 18% and want to get to 25%, you'd need an additional 7% ($112,000 × 0.07 ÷ 12 = ~$653 per month). Also, since you're dealing with an IRS situation, consider asking them directly what withholding percentage they recommend for your specific resolution plan. Sometimes they have requirements that differ from general advice. Good luck getting this sorted out!