I had this same question and ended up talking to my accountant. Here's the deal: regular commuting and parking at your main workplace = not deductible. But there's a workaround my company uses. Instead of giving me a $3k raise (which would be taxable), they give me a $3k annual parking allowance as a separate line item on my paystub. It's still taxable income, but it feels better psychologically to see it earmarked for parking! The pre-tax transit benefit others mentioned is even better if your employer offers it. If they don't, show them this IRS page: https://www.irs.gov/publications/p15b#en_US_2023_publink1000193740 - it explains qualified transportation benefits that can save both you AND your employer money.

I work as a tax preparer and can confirm what everyone's saying - regular commuting parking costs are NOT deductible for W-2 employees, even if they're expensive and necessary for work. The IRS is very clear that these are personal expenses. However, there are several legitimate alternatives worth exploring: 1. **Pre-tax transportation benefits** - This is your best option! Employers can offer up to $280/month (2025 limit) in pre-tax parking benefits. You save money equal to your tax bracket. 2. **Side gig deductions** - If you do any freelance/gig work, parking for those activities IS deductible. 3. **Employer reimbursement** - Some companies will add parking allowances to compensation packages. 4. **HSA/FSA commuter benefits** - Some employers offer these through third-party administrators. The key is working WITH the tax code rather than against it. I'd strongly recommend talking to your HR department about implementing pre-tax transportation benefits - it's a win-win since it also reduces the company's payroll taxes. Keep those receipts though, just in case your work situation changes to qualify for deductions later!

I just want to point out that just because you're reinvesting profits back into the business doesn't mean you're not making a taxable profit. The IRS doesn't see "reinvestment" as an expense category that reduces your tax liability (with some exceptions like qualified retirement plans). For example, if you make $100K in revenue and have $60K in deductible expenses, you have $40K in taxable profit - even if you use that entire $40K to buy more inventory or equipment for next year. Some of those reinvestments might be immediately deductible, others might have to be depreciated over time.

Great thread! One thing I'd add that really helped me as a new LLC owner is to track your effective tax rate quarterly. Once you have a few quarters of data, you'll get a much better sense of your actual tax burden rather than relying on generic percentages. I use a simple spreadsheet where I track quarterly profit, estimated taxes owed (including self-employment tax), and my effective rate. This has been super helpful for cash flow planning because I can see seasonal patterns in my business and adjust my savings accordingly. Also, consider opening a separate savings account specifically for tax withholding. I automatically transfer my estimated tax percentage there every time I get paid, so I'm never tempted to spend that money. When quarterly payments are due, the money is already set aside and earning a bit of interest while it waits.

This reminds me of what happened to my sister-in-law last year. She was checking WMR obsessively while her refund had already been sitting in her account for three days! The IRS systems are handling millions of returns simultaneously, and there's always a lag between their different databases. I've found that bank deposits typically process overnight in batches, so money often appears early morning, while the WMR tool might only update during business hours. The disconnect you're experiencing is actually a good thing - better to have your money before the status update than vice versa!

This is incredibly helpful information! I filed on February 20th and have been religiously checking WMR every morning with no updates beyond "return received." After reading this post, I immediately checked my bank account and sure enough - my refund was deposited yesterday! I would have completely missed it if not for this heads up. It's frustrating that the IRS can't keep their own tracking systems synchronized, but I'm grateful for community members like you who share these insights. For anyone else reading this - definitely check your bank accounts regularly during refund season, regardless of what WMR is showing. The money might already be there waiting for you!

This thread has been incredibly informative! I'm in a similar situation - Australian citizen planning to move to the US permanently in about 2 years. One aspect I haven't seen discussed is the impact of currency fluctuations on the tax treatment. Since my super is denominated in AUD but I'll be filing US tax returns in USD, I'm wondering how currency exchange rates affect the calculation of taxable income and basis. For example, if the AUD strengthens significantly between when I become a US resident and when I eventually withdraw from my super, could that create additional taxable "gain" from a US perspective even if the underlying investments haven't actually grown? Also, does anyone know if there are any special rules for reporting currency gains/losses on foreign retirement accounts under the treaty? I'm trying to understand if I need to track exchange rates at specific dates for future tax calculations. The complexity of this whole situation is mind-boggling, but reading everyone's experiences has been really helpful in understanding what I need to prepare for. Thanks to everyone who's shared their knowledge!

I've been dealing with a very similar situation and wanted to add a few practical points that might help. I moved from Australia to the US two years ago and have been navigating the superannuation tax implications ever since. One thing I learned the hard way is that you need to be very careful about how you report your super fund on Form 8938 (FATCA) and Form 3520/3520-A if the IRS treats it as a foreign trust. The reporting thresholds and requirements are different for each form, and the penalties for getting it wrong or filing late are severe. Also, I'd recommend getting a letter from your super fund administrator confirming the tax treatment of your contributions in Australia. When I was preparing my US tax returns, my accountant needed documentation showing which portions of my super were from pre-tax employer contributions, post-tax salary sacrifice, and any after-tax voluntary contributions I'd made. Without this breakdown, the IRS might default to treating everything as pre-tax, which could result in double taxation. One more tip: if you're planning to make any additional voluntary contributions to your super before moving, be very careful about the timing and tax treatment. Contributions made after you become a US tax resident might be treated differently than those made while you were still an Australian resident. The whole process is definitely complex, but with proper planning and documentation, you can navigate it successfully. Good luck with your move!

I went through this exact situation about 6 months ago - total nightmare without that letter! Here's what actually worked for me after two failed attempts: **Essential documents I brought:** - Driver's license (primary photo ID) - Social Security card (couldn't substitute with W-2 at my office) - Copy of the tax return being held up - Last year's tax return for comparison - W-2s and 1099s from the tax year in question - Recent utility bill for address verification **Pro tips:** - Call 800-830-5084 first thing at 7am when lines open - confirm your local office's specific requirements - Bring a phone charger and snacks - I waited 3.5 hours - Ask for a receipt/confirmation after verification The agent told me that without the CP01A letter, they're more strict about documentation because they can't reference your specific case number. With $23k on the line, definitely over-prepare rather than risk multiple trips. Good luck!

I just went through this exact process two weeks ago! Here's what I learned the hard way: **What they absolutely required at my local office:** - Government-issued photo ID (driver's license worked fine) - Social Security card OR official Social Security statement from ssa.gov - Copy of the specific tax return that triggered the verification - Proof of current address (utility bill, bank statement, etc.) **Key things that saved me time:** - Called 800-830-5084 at exactly 7am to confirm requirements - got through in 15 minutes vs hours later in the day - Made an appointment rather than walk-in (cut my wait from 3+ hours to about 45 minutes) - Brought extra documentation just in case (W-2s, 1099s, prior year return) The agent told me that without the CP01A letter, they have to manually verify your identity using their internal systems, which is why they're more particular about having the exact documents. With your $23k refund, definitely call first to confirm what your specific office requires - some are more flexible than others about document substitutions. One more tip: bring a portable charger and something to do while waiting. Even with an appointment, there were still delays. The whole process was stressful but totally worth it once my refund was released about 2 weeks later!