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I think everyone's overcomplicating this. If you're making money from Only... I mean "selling pictures online" and it's not much, just don't report it? Use cash app or something that doesn't send tax forms. The IRS isn't going after small fish especially international students.
This is terrible advice. Not reporting income is tax evasion regardless of the amount, and as an international student, tax issues can jeopardize your visa status and ability to remain in the country. Many payment platforms now report to the IRS when you exceed certain thresholds (usually $600), and the IRS has been increasingly focusing on unreported income from digital platforms.
I went through almost exactly the same situation last year as an international student with online income! Here's what I learned: You definitely need to report this income - the IRS considers any money earned while physically present in the US as taxable, regardless of citizenship status. For digital art commissions, you'll be filing as self-employed using Form 1040NR and Schedule C. Regarding privacy, this was my biggest concern too. The good news is that ALL tax correspondence goes to whatever address you put on your return - just use your current US address and nothing will be sent to your home country. I also set up an online IRS account to access everything electronically, which minimized any physical mail. One thing that really helped me was checking if your home country has a tax treaty with the US. Many countries do, and it can significantly reduce what you owe or even exempt certain types of income. The IRS Publication 901 has all the details. Keep detailed records of any expenses related to your art business (software, supplies, equipment) - these are deductible and can really help reduce your tax burden. And if you're making over $400 net profit, you'll need to pay self-employment tax too. Don't stress too much about keeping it private from your family - the US tax system is completely separate from your home country's system, and there's no automatic information sharing for individual tax returns.
Just to add another perspective - if you're planning to stay remote long-term, it might be worth exploring whether you can transition some of your work to contractor status with your current employer or pick up additional freelance work in your field. Even a small amount of legitimate self-employment income (like $2,000-3,000 annually) can open up the ability to deduct a portion of your home office expenses including that laptop. I made this transition gradually - started doing some weekend freelance projects in my area of expertise, and now I can legitimately allocate about 25% of my home office costs (including my $1,800 computer setup) to my Schedule C business expenses. The key is that the freelance work has to be real and documented - you can't just create fake income to justify deductions. Even if you decide not to pursue self-employment income, definitely follow up on the employer reimbursement suggestion. Many companies are more open to this now than they were pre-2020, especially if you frame it as a retention and productivity benefit.
I went through this exact same situation last year and want to share what I learned after doing a deep dive into the tax code. The previous comments are absolutely correct - as a W-2 employee, you cannot deduct unreimbursed work expenses like your laptop anymore due to the TCJA changes. However, here are some practical steps you can take: 1. **Document everything now** - Keep receipts and records of when/how you use the laptop for work. If your employment situation changes (like picking up freelance work), you'll need this documentation. 2. **Ask about employer reimbursement** - Frame it as a business expense that benefits productivity. Many employers are more receptive now, especially if you can show the laptop will be used long-term for remote work. 3. **Consider the timing** - The TCJA provisions expire after 2025, so unreimbursed employee expense deductions may return for 2026 and beyond (though this depends on future legislation). 4. **Look into state taxes** - Some states still allow these deductions even though federal law doesn't. Check your state's specific rules. The frustrating reality is that right now, W-2 employees are in a tough spot with home office expenses. The tax code assumes employers will provide necessary equipment, which obviously doesn't match the remote work reality many of us face.
Quick question - when you convert to rental, do you use the original purchase price of appliances as the basis, or the fair market value at the time of conversion? My stove is 10 years old but still works fine.
You use the fair market value at the time of conversion to rental use, not the original purchase price. For a 10-year-old stove, that fair market value would be significantly less than what you paid for it new.
Great question about appliance depreciation! I went through this exact situation when I converted my condo to a rental two years ago. You absolutely can depreciate appliances separately from the building without needing a formal cost segregation study - this is standard practice for clearly identifiable personal property. The key is proper documentation. For your partner's new dryer, you're in great shape since it was recently purchased. For older appliances without receipts, I used online marketplaces like Facebook Marketplace and Craigslist to find comparable used items of the same brand/model to establish fair market value at conversion. One tip: take detailed photos of all appliances with model numbers visible before placing the property in service as a rental. This creates a solid record for the IRS showing what was included and their condition at conversion. The 5-year depreciation schedule for appliances will definitely give you better tax benefits in the early years compared to the 27.5-year building depreciation. Just make sure to keep everything well-documented on your Form 4562!
Have you tried using the Interactive Voice Response (IVR) system? Call 410-260-7701 from the phone number you listed on your tax return. The automated system can give you status updates that sometimes aren't reflected on the website yet. Another option is to verify your mailing address is correct - I've seen cases where refunds were delayed because the system flagged address mismatches between current and previous year returns. The Maryland Taxpayer Service Division can also manually check your refund status if you've waited more than 30 days.
Thanks for the tip about the IVR system! I've been relying on the website which has been pretty unhelpful. Quick question - when you call that number, do you need any specific information beyond what's on your return? I'm worried about getting stuck in an endless phone tree if I don't have the right details ready.
You'll need your Social Security Number, the exact refund amount you're expecting, and the tax year (2024 in this case). The system will also ask for your filing status. Having your Maryland tax return handy is helpful in case it asks for any line items from your return. The phone tree isn't too bad - it usually gets you to the refund status option within 2-3 prompts. Just make sure you're calling from the same phone number you used on your return, or it might not recognize you.
I filed my Maryland return on February 8th and just got my refund deposited yesterday (March 20th), so they are definitely processing them! The timeline seems to be around 5-6 weeks for most people this year. One thing that helped me was setting up direct deposit - I noticed friends who opted for paper checks are waiting even longer. Also, if you claimed any credits like the Earned Income Tax Credit or Child Tax Credit, those seem to be taking extra time for verification. The good news is once they start processing your return, the actual deposit happens pretty quickly. Hang in there - Baltimore folks I know are all getting theirs within this timeframe!
Grace Lee
I think people are making this way more complicated than it needs to be. The rule is simple - ALL income is taxable, whether you get a form for it or not. The 1099 thresholds are just about when companies have to REPORT the income to the IRS, not about when YOU have to report it. If you're trying to make money (which it sounds like you are), then it's a business and you need Schedule C. End of story. Doesn't matter if you made $10 or $10,000. The good part is you can deduct expenses, including part of that tablet. The "hobby vs business" thing only matters if you're showing losses for multiple years and the IRS thinks you're just trying to create artificial losses to offset other income.
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Mia Roberts
ā¢What about the home office deduction? If they're doing this digital art at home, can they claim part of their rent/mortgage as a business expense too?
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Grace Lee
ā¢Yes, you can potentially claim the home office deduction if you have a specific area of your home that you use exclusively and regularly for your business. The key word is "exclusively" - it can't be your dining table that you also eat at or a bedroom you also sleep in. If you qualify, you can deduct a portion of your rent/mortgage, utilities, internet, etc. based on the percentage of your home that's used for business. There's also a simplified option where you can deduct $5 per square foot of your home office (up to 300 sq ft). For someone just starting out with a small business, the simplified option is usually easier and less likely to raise audit flags.
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The Boss
Just want to add something important - if you file Schedule C and show a profit over $400, you'll also need to pay self-employment tax (Social Security and Medicare) which is about 15.3%. Since you said you made about $380 from commissions plus $790 from templates, that's $1,170 total, so you'd definitely owe SE tax. BUT! Don't forget expenses. If you bought that tablet this year, software subscriptions, maybe a portion of your internet bill if you use it for business, those are all deductible expenses that reduce your profit and potentially your tax. My advice - track EVERYTHING. Keep receipts. Log hours spent on business vs personal use for things like your tablet. It'll make tax time way easier and could save you money.
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Evan Kalinowski
ā¢Do you know if subscription services like Adobe Creative Cloud count as a business expense? I use it for both personal and business artwork.
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Chloe Taylor
ā¢Yes, Adobe Creative Cloud can definitely be a business expense! Since you use it for both personal and business, you'll need to determine what percentage is business use. If you estimate 70% of your usage is for paid commissions and business artwork, then you can deduct 70% of your annual subscription cost. Keep a log for a typical month tracking how much time you spend on business vs personal projects - this will help justify your percentage if the IRS ever questions it. The key is being reasonable and honest about the split. Many artists in similar situations use the 70/30 or 80/20 business/personal split depending on their actual usage.
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