


Ask the community...
I want to add something important that I don't think has been fully addressed yet. Since you're living in your car full-time, you need to be extra careful about establishing your tax domicile and residency status. This could affect which state you need to file in, especially if you're driving across state lines or staying in different locations. Also, while you can't double-dip on the car rental expense, there might be other business expenses related to your unique situation that you haven't considered. For instance, if you're using gym memberships for shower facilities, or paying for storage units for personal items, these might have business components if they're necessary for you to maintain your ability to work. Keep detailed records of everything, including where you're parking overnight. If you're ever questioned by the IRS, having documentation that shows your car is genuinely your primary business vehicle (not just a place you happen to sleep) will be crucial for maintaining that 100% business deduction on the rental.
This is really excellent advice about the domicile and residency issues! I hadn't thought about the state filing complications. Quick question - if someone is constantly moving between states while doing rideshare, how do they determine which state gets the tax revenue? Is it based on where you earned the most income, or where you started the year, or something else entirely? Also, the point about gym memberships having a business component is brilliant. If you need to shower to maintain professional appearance for passengers, that seems like it could be at least partially deductible. Same with laundromats if you're washing clothes that you wear while driving.
I've been following this thread with interest as someone who does tax prep for several gig workers. One thing I want to emphasize that hasn't been fully covered - the IRS has specific rules about "listed property" for vehicles used in business. Since you're using this rental car more than 50% for business (which sounds like your situation), you can indeed deduct 100% of the rental costs. However, I'd strongly recommend keeping a contemporaneous log that shows not just your Uber miles, but also the times when you're "available" in the app even if not actively driving. The IRS considers time spent positioning yourself to receive business (like driving to busy areas or waiting in queue zones) as business use too. Given your unique living situation, you might also want to consider whether you're truly an independent contractor versus someone who should be treated as having significant business investment. With $18K+ in vehicle costs against $45K income, you're running a pretty capital-intensive operation. Make sure you understand the hobby loss rules and can demonstrate profit motive - keep records showing you're actively trying to optimize your earnings, tracking profitable times/locations, etc. The complexity here might warrant spending a few hundred on a tax pro who specializes in gig economy returns rather than relying solely on TurboTax.
One more thing to consider - if your employer won't issue a W-2c quickly, you can also file your return with the original W-2 but attach an explanation that subtracts the incorrect imputed income. Use Form 8275 (Disclosure Statement) to explain the discrepancy. I did this last year while waiting for my corrected W-2, and my return was processed without any issues. Just make sure to clearly explain why you're reporting less income than what's on your W-2, and attach documentation (marriage certificate, notification to employer, etc.) to support your explanation.
This is such a frustrating situation, but you're definitely not alone! I went through something similar when my company's payroll system didn't properly update my marital status after I got married mid-year. One thing I'd add to the excellent advice already given - when you contact your HR/payroll department, ask them to provide you with a detailed breakdown showing exactly which pay periods included the imputed income. This will help you verify that the corrected W-2c only includes the proper amount (January through April in your case). Also, keep detailed records of all your communications with HR about this issue, including dates, who you spoke with, and what documentation you provided. If there are any delays or pushback, having this paper trail will be helpful if you need to escalate or if the IRS has any questions later. The good news is that once this gets sorted out, you should see a nice reduction in your tax liability since that $16.5k in incorrectly reported income was being taxed at your marginal rate. Hang in there - this is definitely fixable!
This is really helpful advice about keeping detailed records! I'm definitely going to ask HR for that breakdown of pay periods. One question though - since I submitted all the marriage paperwork within their 15-day window in April, shouldn't they have stopped the imputed income immediately? Or is there typically a delay in payroll systems processing these changes? I'm trying to figure out if there might be any legitimate reason for the delay beyond just a system error. Also, do you know if there are any penalties or interest charges I need to worry about if this causes me to underpay estimated taxes throughout the year? Since my reported income was artificially high, I might have been having too much withheld.
y'all really paying these places to borrow ur own money back lmaooo
not everyone can wait 3 months for irs to get their act together š¤·āāļø
fair point, my bad. we all in the same boat fr
Been there! Liberty Tax's advance approval usually comes within 24-72 hours, but definitely check your spam folder like others mentioned. Also make sure you have all required docs submitted - missing anything can delay the process. If it's been over 3 business days, definitely give your local office a call to check status.
Good advice! I'm in a similar situation right now - filed yesterday and applied for the advance. Fingers crossed it doesn't take too long. Did you end up getting approved when you went through this process?
Yes, I got approved after about 36 hours! Just make sure you uploaded clear photos of your ID and bank statements - that's usually what slows things down. The waiting is definitely nerve-wracking but hang in there @Mateo Sanchez!
I'm dealing with a similar situation right now! Just got quoted $950 for my return which includes one rental property and a K1 from a partnership investment. What really helped me was asking the accountant to break down exactly what they'd be doing - turns out they include a consultation about tax planning for next year and will handle any IRS correspondence if issues come up. When I compared that to cheaper options, some were just basic preparation with no ongoing support. I ended up negotiating down to $800 by agreeing to have all my documents organized digitally beforehand. Maybe try asking your accountant what's included in that $1200 and see if there's any flexibility based on how prepared your paperwork is?
That's a really smart approach asking for the breakdown! I never thought about negotiating based on how organized my documents are. Did they give you a checklist of what "organized digitally" meant to them? I'm pretty good with spreadsheets and scanning docs, so if I could save a few hundred bucks by doing the prep work myself, that seems like a win-win.
Shop around for sure! I had a similar experience last year - first accountant quoted me $1,400 for two rental properties and a K1, which seemed crazy high. I ended up finding someone who charged $750 for the exact same work and did a great job. The key thing I learned is that pricing varies wildly between tax preparers, even for identical situations. Some charge per form, others have flat rates for complexity levels, and some just seem to charge whatever they think they can get away with. I'd recommend getting at least 2-3 quotes and asking each one to explain their fee structure. Also ask about their specific experience with rental property taxes - you want someone who knows the ins and outs of depreciation, passive activity rules, etc. Don't just go with the cheapest, but definitely don't assume the most expensive is the best either.
This is exactly the kind of advice I needed to hear! I was starting to think maybe I just didn't understand tax preparation costs, but hearing that you found someone for $750 vs $1,400 for the same work makes me feel like I should definitely shop around more. Do you have any tips for evaluating whether a tax preparer actually knows rental property taxes well? I'm worried about ending up with someone cheap who might miss important deductions or make mistakes. What questions did you ask when you were getting those quotes?
Mei Wong
I'm also a non-resident alien dealing with 1040NR filing, and this thread has been a goldmine of information! I'm from Australia and have US-source rental income from a property I inherited. The rental income situation seems more straightforward than consulting work, but I'm still nervous about getting the depreciation calculations right and understanding how the US-Australia tax treaty applies to rental income. One question for the group - has anyone dealt with reporting rental income as a non-resident? I'm particularly confused about whether I can deduct property management fees and repairs the same way US residents can, or if there are different rules for non-residents. The IRS publications aren't super clear on this distinction. Also, I see several people mentioning getting connected to IRS agents for specific questions. Given that I'm calling from Australia, the time zone difference makes this even more challenging. Has anyone from Australia or similar time zones had success with the Claimyr service that was mentioned?
0 coins
Sarah Jones
ā¢I can help with the rental income questions! As a non-resident alien with US rental property, you can generally deduct the same expenses as US residents - including property management fees, repairs, maintenance, insurance, and depreciation. The key difference is that you're subject to a flat 30% withholding tax unless you elect to treat the rental income as effectively connected with a US trade or business (which most people do by filing Form W-8ECI with your property manager or tenant). For Australia specifically, the US-Australia tax treaty doesn't provide special treatment for rental income - it's still taxed as US-source income. However, you should be able to claim a foreign tax credit on your Australian return to avoid double taxation. Regarding calling from Australia, I haven't personally used Claimyr from there, but the time zone issue is exactly why their callback system could be valuable. They handle the waiting during US business hours and call you back when connected, so you don't have to stay up all night trying to reach the IRS. The service should work internationally as long as they can call your number when an agent is available. Make sure you're tracking all your rental expenses carefully and consider whether the depreciation deduction makes sense for your overall tax situation, especially given the depreciation recapture rules when you eventually sell the property.
0 coins
Lucas Lindsey
This thread has been incredibly helpful for understanding the current landscape of 1040NR filing options! As someone who's been following this space closely, I wanted to add a few additional considerations that might help others: For those dealing with multiple income sources (like combining W-2, 1099, and rental income), make sure whatever service you choose can handle the complexity. Some of the newer AI-powered tools are getting better at this, but it's worth testing with a simple scenario first if you're unsure. Also, don't forget about state tax obligations! Several states have specific rules for non-residents that can be quite different from federal requirements. California, New York, and a few others are particularly strict about sourcing rules for non-resident income. One thing I'd emphasize is keeping detailed records of your time in the US if you're anywhere close to the substantial presence test threshold. Even if you're clearly a non-resident this year, having good documentation helps if your status changes in future years or if there are any questions during an audit. For those mentioning VITA services - this is a great free option, but do call ahead to confirm they have volunteers trained on non-resident returns. The training requirements are more specialized, so not every location offers this service. Thanks to everyone who shared their experiences with specific services and tools. It's really helpful to hear real-world feedback rather than just marketing claims!
0 coins
Elin Robinson
ā¢This is such a comprehensive overview, thank you! I'm just starting to navigate this whole 1040NR process and feeling pretty overwhelmed. Your point about keeping detailed records of US time is something I hadn't considered - I'm on an H-1B visa and travel back home frequently, so I should probably start tracking those dates more carefully. One quick question - when you mention testing AI-powered tools with a simple scenario first, do you mean like doing a practice run before the actual filing? I'm worried about making mistakes but also don't want to accidentally submit multiple returns or mess something up while testing. Also really appreciate the state tax reminder. I'm in Texas which doesn't have state income tax, but I did some contract work in California last year, so I'm guessing I need to deal with CA non-resident requirements too. This is getting more complicated than I thought!
0 coins