Does anyone know if this impacts household employees who didn't receive a W-2? I paid my house cleaner through Venmo all year (about $6,000 total) but didn't use a payroll service. Now I'm worried they'll get a 1099-K and have to pay self-employment taxes when they're technically a household employee.

This is a great discussion that highlights how confusing the intersection of payment app reporting and household employee taxes can be! One thing I'd add is that if you're ever in doubt about whether your babysitter received a 1099-K, you can actually check with them in January/February when tax documents are being sent out. Since you have a good relationship (they're a friend), a quick "Hey, did you get any tax forms from Venmo?" conversation could help you both prepare for tax season. Also, for anyone reading this thread who might be in a similar situation in the future - consider asking your payroll service about their payment options before assuming there are extra fees. Many services now offer free or low-cost direct deposit specifically because it avoids these payment app reporting complications. The $5,000 threshold for 2024 that Andre mentioned is definitely key information. The IRS has been flip-flopping on the 1099-K thresholds for payment apps, so it's worth checking the current rules each year rather than assuming they stayed the same.

I went through this exact same situation with my Finnish company working with US clients! The W-8BEN-E definitely looks overwhelming at first, but it's actually quite straightforward once you break it down. For your Dutch V.O.F., here's what worked for me with a similar business structure: **Key sections to focus on:** - Part I: Basic business info (name, address, etc.) - Part II: Use your BTW/VAT number as the TIN - Part III: Check box 14a for treaty benefits and reference Article 7 (Business Profits) of the US-Netherlands tax treaty - Part XV: Check this for partnership classification (V.O.F. is treated as partnership for US tax purposes) - Part XXX: Don't forget to sign and date! **Pro tip:** Before submitting, double-check with your US client that they need the W-8BEN-E (for entities) and not the regular W-8BEN (for individuals). Some companies accidentally send the wrong form. The most important thing is getting the entity classification right - partnerships like your V.O.F. typically get better treaty benefits than corporations. Once you complete your first one, keep a copy as a template because many US clients will ask for updated forms annually. If you're still feeling uncertain, consider reaching out to a Dutch tax advisor who has experience with US forms - many offer quick consultations for exactly this type of question.

I completely understand your confusion - the W-8BEN-E can be really intimidating the first time you see it! I went through the exact same thing with my Belgian company when we started working with US clients. Based on the great advice already shared here, I want to emphasize a few key points that helped me get through this: 1. **Don't overthink the TIN section** - Your BTW/VAT number is perfect for this field. The IRS recognizes it as a valid foreign tax identifier. 2. **Double-check your entity classification** - Since you mentioned you're a V.O.F., you'll definitely want Part XV (Partnership) rather than any corporate sections. This is crucial for getting the right treaty benefits. 3. **Keep it simple with treaty benefits** - Article 7 of the US-Netherlands tax treaty should cover your consulting services, assuming you're working remotely from the Netherlands without a physical presence in the US. 4. **Save everything** - Once you complete this form, save a copy and document exactly what you filled in. Most US clients require updated forms annually, and having a reference makes future submissions much faster. One last tip: if you're still feeling uncertain after reviewing all the helpful advice here, don't hesitate to reach out to your US client's accounting team. They've seen these forms countless times and can often clarify exactly what they need for their specific situation. You've got this! The first one is always the hardest, but it gets much easier once you understand the structure.

I think everyone's missing something important here - are you actually making ANY income from fitness coaching yet? The IRS is super picky about hobby losses vs actual businesses. If you're not making money from fitness coaching for several years, they might disallow ALL your deductions regardless of when you buy the equipment.

This is such a great question and I'm glad you're thinking ahead about the tax implications! As someone who's been through a similar transition, I'd suggest being really careful about the timing and documentation. One thing that hasn't been mentioned yet is that you might want to consider starting with a smaller equipment purchase to test the waters - maybe just a few key pieces that would clearly be for business use only. This way you can establish a pattern of legitimate business expenses without a huge upfront investment that might raise red flags. Also, since you mentioned you already have two other side businesses, make sure you're tracking everything separately. The IRS likes to see clear business boundaries, especially when you're claiming home-based business expenses across multiple ventures. Have you considered reaching out to a CPA who specializes in fitness professionals? They might be able to help you structure the equipment purchases in a way that maximizes your deductions while minimizing audit risk. The peace of mind might be worth the consultation fee!

Quick question - I'm in a similar boat and wondering if I should just use TurboTax or something to catch up on my unfiled years? Anyone tried that route?

I went through this exact situation last year - 7 unfiled returns! After reading all the advice here, I ended up going with an Enrolled Agent and it was absolutely the right choice. Here's what I learned: the main advantage of an EA isn't just filing the returns, it's dealing with all the complications that come with being behind. When the IRS started sending me notices about penalties and interest, my EA handled all of that correspondence. She also knew exactly which forms to use for prior year filings and caught several issues that would have caused problems later. The cost was higher than a regular preparer (about $300 per return vs $150), but she saved me way more than that in penalties she got waived. Plus, she set up a payment plan for the taxes I owed, which I had no idea I could even do. My advice: definitely go with an EA for multiple unfiled years. The peace of mind alone is worth it when you're dealing with the IRS on back taxes.

This is really helpful to see everyone's experiences! I'm in the same boat - my status changed to "STILL being processed" after exactly 21 days too. Based on what I'm reading here, it sounds like this is definitely a meaningful status change that indicates additional review rather than just different wording. I'm curious though - for those who got through to actual IRS agents, did they give you any sense of what triggers these reviews? Is it truly random or are there patterns? I have a pretty straightforward return with just W-2s and standard deduction, so I'm surprised mine got flagged. Thanks for all the insights everyone!

Great question! I've been through this exact same situation twice now. The "STILL being processed" status is definitely a meaningful change - it indicates your return has moved beyond the standard processing queue and into what the IRS calls "extended processing." This typically happens when your return is selected for additional verification, whether that's identity verification, income matching, or review of specific credits/deductions. In my experience, the timeline extends to 6-10 weeks from the original filing date. The key is checking your tax transcript for specific transaction codes that can give you more insight into what's causing the delay. Don't panic though - most of these extended reviews resolve without any issues or additional action needed from you!