I've been dealing with this exact situation for years with two W-2 jobs, and it's incredibly frustrating from a policy perspective. What bothers me most is the lack of transparency - most people in this situation have no idea this is happening until they start digging into the details. The fact that employers can't coordinate or get refunds creates perverse incentives. My second employer always acts like they're doing me a huge favor by "paying the employer portion" of Social Security tax, but they're actually paying more than they should if there was better coordination in the system. I've calculated that over the past 5 years, my various employers have collectively overpaid about $8,000 in Social Security taxes because of this quirk. That money just disappears into the Social Security system with no accountability. While I understand the system needs funding, this feels like an unintentional tax on people who work multiple jobs rather than a deliberate policy choice. Has anyone ever seen any proposals in Congress to fix this, or is it just considered too niche of an issue to address?

As someone who's been navigating this exact situation for the past two years with multiple W-2 positions, I can confirm everything that's been shared here. The employer portion really is just "lost" money that goes to Social Security with no refund mechanism. What I've learned through trial and error is that you need to be proactive about managing this. I now adjust my W-4 at my secondary jobs to account for the fact that I'll hit the Social Security cap early in the year at my primary job. This prevents most of the overwithholding on my end, though it doesn't solve the employer portion issue. One thing I haven't seen mentioned here is that this same issue applies to Medicare tax, but only for the additional 0.9% Medicare tax on high earners. The base Medicare tax (2.9% total) has no cap, so that's not affected. For anyone dealing with this, I'd strongly recommend keeping detailed records of all your W-2s and Social Security withholding. The excess employee portion refund is straightforward to claim on your tax return, but you need to do the math yourself to make sure you're getting the full credit you're entitled to. The IRS won't automatically flag it if you miss claiming some of your overpayment. It's frustrating policy-wise, but at least understanding how it works helps you plan better financially.

its definitely NOT every 24 hrs, ive been checking mine for weeks and sometimes nothing changes for 10+ days straight smh

From my experience working in tax prep, the IRS batch processes updates overnight but your individual transcript might not change daily. The system does update around 3-4 AM EST like others mentioned, but whether YOUR specific return gets processed depends on where you are in the queue at your processing center. Early filers and simple returns usually see faster updates, while complex returns or those with errors can sit for weeks without changes. Don't drive yourself crazy checking multiple times per day - once in the morning after 6 AM EST is plenty!

This thread has been incredibly helpful! As someone who's been in a similar limbo situation with an L1 visa, I wanted to add one more consideration that hasn't been mentioned yet. Even though you don't have filing requirements now, it's worth starting to document everything related to your US travel and visa status. Keep records of: - Entry/exit dates from the US (I-94 records) - Purpose of each trip (business meetings, etc.) - Your UK tax returns showing UK-sourced income - Employment contracts/payroll records proving UK employment This documentation becomes invaluable later when you do make the transition to US tax residency. The IRS may ask about your prior tax status, especially for the first few years after you become a US resident. Having clear records that demonstrate you were correctly classified as a non-resident alien during your business travel period will save you potential headaches down the road. Also, once you do relocate, consider whether you'll need to report any UK bank accounts or investments on FBAR (Form 114) or Form 8938. The reporting thresholds are different for US residents vs non-residents, so accounts that didn't require reporting before might need to be disclosed after you move.

This has been an incredibly thorough discussion! I'm in a very similar situation - UK-based with an L1 visa that I haven't used yet but planning to relocate within the next 12-18 months. One thing I wanted to add that might be helpful for others in this position: I recently spoke with an international tax attorney who mentioned that even though we don't have US filing requirements now, it's worth understanding the "election to be treated as resident" option under IRC Section 6013(g). If you're married and your spouse will also be moving to the US (or is already a US citizen/resident), you might be able to elect to be treated as a US resident for tax purposes starting from your first day in the US, rather than waiting until you meet the substantial presence test. This can sometimes be beneficial for tax planning purposes, though it also means you'd be subject to US tax on worldwide income immediately. It's definitely something to discuss with a tax professional before making the move, as the election affects both spouses and can't easily be undone. But it's another consideration that might be relevant for people planning their transition timing. Has anyone else encountered this situation or have experience with the resident election?

As someone who's been dealing with both US and international tax compliance for years, I wanted to add a few practical tips that might help other expats: 1. **Keep detailed records**: For Form 8938, you'll need to track not just year-end values but also the highest balance during the year. I recommend taking screenshots of your account balances monthly, especially for accounts that fluctuate significantly. 2. **Currency conversion timing matters**: Use the Treasury's published exchange rates for the specific dates you're reporting. Don't just use average rates or whatever Google shows you - the IRS expects you to use their official rates. 3. **Australian superannuation complexity**: While your super is technically reportable on Form 8938, there are ongoing debates about whether it should also be reported on Forms 3520/3520-A as a foreign trust. The IRS hasn't provided clear guidance, so many practitioners take a conservative approach and report it on multiple forms. 4. **P2P lending platforms**: These can be tricky. If you're lending directly to individuals, it's likely "other financial assets." If the platform pools funds and you own units/shares in a fund, it's probably custodial. Check your statements to see exactly what you own. Remember that Form 8938 and FBAR have different thresholds and requirements, so you might need to file one but not the other depending on your account values.

Just went through this exact situation last year as a fellow Aussie expat! Your regular bank accounts (CommBank savings, etc.) are definitely deposit accounts - pretty straightforward there. For your trading platform shares, that's a custodial account since the platform holds the securities on your behalf. Your superannuation is also custodial, though as others mentioned, there might be treaty protections to consider. The P2P lending is the tricky one - it really depends on the platform structure. If it's something like RateSetter or SocietyOne where you're essentially buying loan parts directly, that's usually "other financial assets." If it's more like a managed fund where you own units, then custodial. One thing I learned the hard way: make sure you're converting to USD using the Treasury rates for the actual dates, not just year-end rates for everything. Also, keep really good records of your highest balances during the year - I had to go back through 12 months of statements to find peak values. The good news is once you get the hang of the classifications, subsequent years are much easier. And don't forget about FBAR filing if your combined account values hit $10K+ at any point!

This has been such an informative discussion! As someone who's been putting off starting affiliate marketing because of tax confusion, you've all really helped clarify things. I'm definitely going to get an EIN - the privacy protection alone makes it worth it. One thing I'm curious about that hasn't been mentioned yet - if I get an EIN now but don't actually start making any affiliate income until next year, does that cause any issues? Like, do I need to file anything special just for having the EIN, or does it only matter once I actually start earning money? Also, for those tracking expenses, do you separate out expenses that are partially personal use? For example, if I upgrade my internet plan partly for affiliate work but also just because I wanted faster speeds for streaming, how do you handle that on the business side? Thanks again everyone - this community has been incredibly helpful for a newcomer like me!

This thread has been incredibly helpful! I just wanted to add my experience as someone who recently went through this process. I got my EIN about 6 months ago specifically for affiliate marketing, and it's been one of the best decisions I made. One thing I learned that might help others - when you're filling out W-9 forms for affiliate programs, make sure you select the correct tax classification. As a sole proprietor with an EIN, you'll typically check "Individual/sole proprietor" and then write your EIN in the tax ID field instead of your SSN. Some people get confused and think they need to check "LLC" or something else, but if you haven't formed a separate business entity, you're still an individual/sole proprietor even with an EIN. Also, I'd recommend keeping a simple log of which affiliate programs you've provided your EIN to and when. This has helped me anticipate which 1099s to expect at the end of the year and follow up if any seem to be missing. The organization aspect really does make tax season much less stressful! For anyone still hesitant - the whole process took me maybe 15 minutes on the IRS website, and the peace of mind has been worth so much more than that small time investment.