Wait I'm confused - I thought home office deduction was part of itemizing? So if I take standard deduction I can't claim my home office for my sole proprietorship? I've been doing this wrong for years then!

This is such a common misconception! I went through the exact same confusion when I started my consulting business. The key thing to remember is that Schedule C business expenses and the standard deduction operate on completely different "levels" of your tax return. Think of it like this: Schedule C calculates your net business profit (gross income minus business expenses), and that net profit number flows to Line 3 of your Form 1040. Then, much later in the process, you decide whether to take the standard deduction or itemize your personal deductions. So yes, absolutely organize those receipts and track your business expenses! Every legitimate business expense reduces both your income tax AND your self-employment tax (which is 15.3% on net earnings). Even if your business has slowed down, those deductions are still valuable. For your accountant, provide everything you mentioned: all 1099s/W2s, organized business expenses by category, and your investment statements. Since you have a Solo 401k, make sure to include any contributions you made there too - those are also deductible regardless of whether you itemize or take the standard deduction.

I'm dealing with this exact situation right now! Just became a permanent resident last month and my clients in the UK are asking for Form 6166. Reading through all these responses has been incredibly helpful - especially knowing that the IRS does have a process for new residents who haven't filed before. One thing I'm curious about that hasn't been mentioned: does anyone know if the type of visa you had before getting your green card affects the application? I was on an H-1B for two years before getting my permanent residency, so I technically had US-source income but filed as a non-resident. I'm wondering if I need to explain that transition in my letter or if it complicates things. Also, has anyone tried applying for multiple tax years at once? My clients need certification for both 2024 and 2025, and I'm not sure if I should submit separate Form 8802s or if there's a way to request both years together. Thanks to everyone who shared their experiences - this thread is a goldmine for people in our situation!

This thread has been incredibly helpful! I'm in a similar situation - just received my green card two weeks ago and already having clients in Canada and the UK ask for Form 6166. One thing I wanted to add that might help others: I called the IRS International Tax Services office directly (got through using Claimyr after reading about it here) and the agent mentioned that for new residents, they often see applications get delayed because people don't include enough detail about their immigration timeline. She specifically recommended including copies of: - I-94 arrival records showing when you first entered with work authorization - Any previous visa approval notices (like H-1B, L-1, etc.) - The actual green card or approval notice with the "resident since" date The agent said this documentation helps them verify exactly when you became a US tax resident, which is crucial for determining treaty eligibility. She also mentioned that if you've been in the US for part of the year on a different status, make sure to calculate and explain your "substantial presence test" days to show when you crossed the threshold. Planning to submit my Form 8802 next week with a detailed timeline and all supporting docs. Fingers crossed for a smooth process!

Filed my Oklahoma return on January 31st and finally got my refund this morning! Took about 3.5 weeks total. I was checking the status obsessively and it stayed on "processing" until Tuesday when it switched to "approved" - then the direct deposit hit today. For anyone still waiting, I know it's stressful but it seems like they're working through the backlog. The enhanced fraud prevention measures @Nick Kravitz mentioned are probably why it's taking longer, but at least they're being thorough. Hang in there everyone!

Filed mine on January 28th and got my refund last week - took about 4 weeks total. I know the wait is frustrating but wanted to share some hope! My status stayed on "processing" for weeks with no updates, then suddenly switched to "approved" and the deposit came 2 days later. For anyone still waiting, it really does seem like they're just working through a massive backlog. I actually called twice and got two different wait time estimates (3-4 weeks vs 6-8 weeks) so even the reps don't seem to have consistent info. Just keep checking that status page even though it's not super helpful - once it changes you're almost there!

Has anyone used FreeTaxUSA for calculating potential tax brackets? I'm in a similar situation to the OP and trying to figure out if I should do some tax loss harvesting before year end to offset gains.

Great question about the 2025 tax brackets! Just to add some practical context to what others have shared - with your $110k income, you'll definitely be in the 24% marginal bracket for federal taxes. But here's what I'd focus on: 1. **Stock options timing**: If you're planning to exercise stock options, consider spreading it across tax years if possible. A large exercise could push you well into the 24% bracket or even higher. 2. **Max out tax-advantaged accounts**: You can contribute up to $23,500 to your 401k in 2025 (if you're under 50). Every dollar you put in reduces your taxable income dollar-for-dollar. 3. **Don't forget FICA**: Remember that Social Security and Medicare taxes (7.65%) apply to your wages regardless of income tax brackets. The strategies to stay in lower brackets really depend on how close you are to the $100,526 cutoff after your 401k contributions and other deductions. If you're right on the edge, maximizing your HSA contributions (if available) and considering a traditional IRA contribution could help. What state are you in? That'll make a big difference in your total tax picture.

I just wanted to add my experience since I was in the exact same boat last year. After reading through all these helpful responses, I can confirm that line 26 is definitely the right place for your extension payment. What really helped me was looking at the actual Form 1040 instructions (Publication 1040) rather than just the form itself. The instructions for line 26 explicitly mention including "any estimated tax payments you made with Form 4868" which is exactly what your $2,800 payment was. One thing I learned is that even though the line says "estimated tax payments," the IRS considers your extension payment to be a type of estimated payment since you're estimating what you owe and paying it in advance of filing your actual return. It all gets sorted out when they process your return and calculate your final tax liability. Don't stress too much about it - the IRS computer systems are pretty good at matching payments to returns using your SSN, even if there are small discrepancies. Just make sure you enter the exact amount you paid ($2,800 in your case) and you should be all set!

I went through this exact same confusion two years ago and it drove me crazy! You're absolutely right that the form used to be clearer about extension payments. Line 26 is definitely the correct place for your $2,800 extension payment. What helped me understand it was realizing that from the IRS's perspective, both quarterly estimated payments and extension payments serve the same purpose - they're advance payments toward your tax liability. That's why they combined them on one line. Make sure you have your Form 4868 confirmation handy when you file, just in case there are any questions later. The IRS should automatically match your payment to your return using your SSN, but having that backup documentation gives you peace of mind. One tip: if you're using tax software, some programs will actually ask you specifically if you made an extension payment and then automatically add it to line 26 for you. But if you're doing it by hand, just enter the $2,800 on line 26 and you're good to go!