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Has anyone actually looked at the specific Brazil-US tax treaty recently? I think Article 22 was modified in the last protocol. If I remember correctly, Brazilian students in the US can exclude up to $8,000 per year of income related to their studies or training, but only for a maximum of 5 years. Also, don't forget to file Form 8843 alongside your tax return next year! It's required for all international students regardless of whether you earned income or not.
The Brazil-US tax treaty is actually one of the more limited ones. You might be thinking of a different country. Brazil's treaty doesn't have the standard education article that many other treaties have. Brazilian students typically can't exclude internship income under the current treaty.
I'm actually a tax professional who works with international students regularly, and I need to clarify some misinformation in this thread. First, @Mateo Silva is correct - the Brazil-US tax treaty does NOT have a student exemption provision like many other countries do. Brazilian students cannot exclude internship income under the current treaty terms. Second, regarding the W-4 form: Yes, you should write "NRA" at the top, but more importantly, you need to understand that as a non-resident alien, you cannot use the standard W-4 worksheet. You'll typically have much higher withholding because you can't claim the standard deduction. For your internship, you'll likely be subject to the flat 30% withholding rate on your income unless your employer can apply graduated rates (which requires additional documentation). This is significantly higher than what US citizens pay. My recommendation: Contact your university's international student services office immediately. They should have resources specifically for students from Brazil and can help you understand exactly what forms you need. Don't rely on third-party tools for something this important - get official guidance from your school's advisors who work with Brazilian students regularly. Also, start preparing for a potentially large tax refund next year since the withholding will likely be higher than your actual tax liability when you file your return.
Has anyone actually asked their HR department about this? Before diving into IRS definitions, your company's plan administrator should be able to tell you what they'll accept. My company specifically lists approved vendors for our commuter benefits program, and rideshare services aren't included regardless of vehicle size. The plan administrator ultimately decides what expenses they'll process through the program based on their interpretation of the rules. Our company allows regular public transit, registered vanpools, and qualified parking, but specifically excludes taxis, Uber, and Lyft (even XL versions). You might be overthinking this if you haven't checked your company's specific policy documentation first. Even if there's a technical argument that could be made, if your benefits administrator doesn't approve it, you won't be able to use the pre-tax dollars for it.
That's a really good point. I haven't started the job yet (beginning this summer), so I haven't been able to check with HR about their specific policies. I'll definitely reach out to them before making any assumptions. Do you know if these policies are typically flexible or pretty standardized across companies?
In my experience working with several companies, these policies tend to be fairly standardized because most employers use third-party administrators (like WageWorks/HealthEquity, Edenred, etc.) to manage their commuter benefits programs. These administrators typically have established guidelines about what qualifies. That said, it never hurts to ask if there's flexibility. Some employers offer additional transportation subsidies or reimbursements outside the formal pre-tax program for situations exactly like yours. For example, my previous employer had a separate "alternative transportation" reimbursement for employees who occasionally needed to use non-qualifying options when public transit wasn't feasible.
UberXL definitely doesn't qualify and here's why from my experience as someone who tried this exact thing last year: 1) Uber/Lyft are considered "taxi services" by the IRS regardless of vehicle size 2) The "commuter highway vehicle" definition requires REGULAR use for commuting (your 4-5 times/month wouldn't qualify) 3) The UberOne pass isn't a "transit pass" in the IRS definition because it doesn't directly entitle you to transportation - it just gives discounts I found this out the hard way after submitting UberXL receipts to our benefits administrator and having them rejected. When I appealed, they pointed to IRS Publication 15-B which clarifies these distinctions. Your best bet is to use the qualified mass transit options for regular commuting, and just pay out-of-pocket for those occasional UberXL rides. Not worth the hassle of trying to force them into the qualified transportation benefit.
Does this also apply to the monthly rideshare passes some cities offer? My city has a program where you can buy a monthly pass that gives you a set number of shared rides in designated zones. It's a partnership between the city transit authority and Uber, so I thought it might fall under different rules.
That's an interesting question about city-sponsored rideshare passes! Those hybrid programs might actually have different treatment since they involve the transit authority directly. The key would be whether the IRS views it as a "transit pass" issued by a qualified transit system or still as a rideshare service discount. I'd recommend checking with your city's transit authority to see if they've gotten any official guidance on the tax treatment of these passes. Some cities have worked with the IRS to get formal determinations on whether their specific programs qualify. The fact that it's a partnership with the transit authority and provides actual transportation credits (not just discounts) might make a difference in classification. @eea5968794f8 Have you come across any of these hybrid programs in your research? I'm curious if the IRS has issued any guidance on how they treat these newer partnership models.
Has anyone used TurboTax Self-Employed for reporting content creation income? I'm in a somewhat similar situation and wondering if standard tax software can handle these more complex arrangements or if I need to hire a specialized accountant.
I use TurboTax Self-Employed for my art commissions including some more adult-oriented content. It works fine for reporting different income streams on Schedule C. Just make sure you categorize expenses properly. The software asks good questions about business type and income sources. For more complex stuff like entity formation though, you'll probably want to consult with a professional.
Given your 2-day deadline, I'd strongly recommend using your existing art business account as the immediate solution. This keeps everything under your business umbrella rather than your personal name, and since you already consider this artistic work, it's a legitimate business categorization. For the W-9 concern - it won't appear on background checks. W-9s are internal tax documents between you and the platform, not public records. Regarding joint accounts: typically both parties must provide tax info, but you can often designate one primary account for payments. However, the platform will likely issue 1099s to both names on the account, so you'll both have tax obligations regardless of where the money flows. Long-term, forming an LLC with your partner would provide better liability protection and privacy structure, but that's not feasible in your current timeframe. You can always transition to an LLC later and update your payment information with the platform. The key is meeting their deadline first with your art business account, then optimizing your structure afterward when you have more time to plan properly.
This is really solid advice, especially about meeting the deadline first and optimizing later. I'm curious though - when you transition from using your art business account to an LLC later, does the platform typically make this process smooth? I've heard some platforms can be difficult about changing account ownership or payment details once everything is set up, especially for joint accounts.
I just want to clarify something important here - having credit codes without a 570 code is actually a GOOD sign! I was so relieved when I learned this. It means your return is processing normally without any holds. The IRS is just moving slower than usual this year, especially with returns filed in early February. Many of us are seeing 6-8 week processing times even for simple returns. My transcript updated last week after 7 weeks of waiting with no explanation for the delay.
I'm in almost the exact same situation! Filed February 8th, transcript updated last Wednesday with credit codes but still no 846. This is my second year filing in the US and I was panicking thinking something was wrong. Reading everyone's responses here is so reassuring - sounds like this timeline is actually normal this year, just frustrating when you're waiting. I've been checking my transcript obsessively every day but I guess I should focus on those Wednesday/Thursday night updates mentioned above. Thanks for posting this question, you're definitely not alone in this waiting game!
Zara Rashid
One thing to watch out for - some cities have agreements where they credit you for taxes paid to other municipalities, but others don't. If your home city and your employer's city don't have a reciprocal agreement, you might end up owing taxes to both places and then having to file for a refund from the employer's city. I had this happen and ended up owing an extra $1,400 to my home city even though my employer had been withholding for a different city all year. Total nightmare. Make sure you check if your cities have tax reciprocity!
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Luca Romano
ā¢This happened to me too! I ended up having to pay my home city AND wait 11 months for a refund from the other city. Now I just set aside extra money knowing I'll have to float this amount every year at tax time. Do you know if there's any website that lists which cities have reciprocal agreements? I'm relocating soon and this would affect where I choose to live.
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Ravi Patel
This is such a frustrating situation, and you're absolutely right to be concerned about double taxation! I went through something similar when I started working remotely for a company based in a different state. One thing I'd add to the great advice already given - make sure you keep detailed records of when you started working remotely and any communications with your employer about your work location. Some local tax offices will want proof of when the remote work arrangement began to determine how much of the year you're entitled to a refund for. Also, Pennsylvania has some quirks with local taxes that you should be aware of. Many PA municipalities contract with third-party collectors (like Berkheimer or Jordan Tax Service) rather than handling taxes directly. You might need to file your refund claim with the collector, not the city itself. Check your paystub to see who's actually collecting the tax - it should be listed there. The good news is that PA generally has clear guidance on telecommuting tax situations since it's so common there. Your employer should definitely be able to update your withholding location once you provide them with the proper documentation. Don't let them tell you it's "too complicated" - they deal with remote workers all the time now!
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