Oh no, I hadn't even thought about state taxes! We're in New York - do you know if they follow the federal rules for foreign income or have their own system? This is getting more complicated by the minute.

New York generally follows federal rules for income inclusion, so if you're reporting the rental income on your federal Schedule E, you'll need to include it on your NY return too. The one benefit is that NY does allow credits for foreign taxes paid, similar to the federal system. Some states like Nevada or Florida might be more advantageous for people with significant foreign income since they don't have state income tax. But for now, plan on reporting that Belgian rental income on both federal and NY returns.

Good point! Though I think Form 8833 is only required if you're taking a position that's contrary to the treaty or if you're claiming the treaty overrides an internal US law. Not everyone with foreign property needs it.

Where is this "notes section" you mentioned? Is that something in TurboTax or the actual IRS forms? I'm having a similar issue and want to make sure I do this right.

Sorry, I should have been more clear! In most tax software (I used TaxAct), there's a section where you can add miscellaneous information or notes when you're entering 1099 information. In the actual IRS forms, you can attach a statement labeled "Form 1099-K Name Discrepancy Explanation" that briefly explains the situation. If you're using TurboTax, look for the section where you enter your 1099-K information - there should be an option for "Notes" or "Add Additional Information." If you don't see it, you can always create a separate document explaining the discrepancy and attach it to your return as a PDF if filing electronically, or as a physical attachment if filing by mail.

Thanks for the inside info! So the rejection thing the IRS person told OP was just to scare them? I've been worried because my PayPal 1099-K has my username not my legal name lol

The IRS agent was being overly dramatic. The system won't automatically reject an e-filed return just because of a name mismatch on a 1099-K when the SSN matches. What likely happens is they were trying to motivate you to get it corrected because it makes their matching process easier. For your PayPal situation, that's super common! As long as your SSN is correct on the 1099-K, you should file using your legal name. The IRS matching program will flag it, but then verify the SSN and process it. You might get that CP2000 letter I mentioned asking you to confirm it's your income, but just respond promptly and you'll be fine.

I'm filing as Head of Household, not single - does that change the income limits for Form 8880? And do employer matches count toward the contribution amount for the credit, or just what I put in myself?

For Head of Household, the income limit for Form 8880 is $51,000 for 2022, so at $43k you should still qualify for at least a partial credit. The credit rate would be 10% of your qualified retirement contributions. Only your contributions count toward the credit, not your employer match. So if you contributed 5% of your salary, only that amount qualifies for the Saver's Credit. The employer match is great for your retirement savings but doesn't factor into this particular credit calculation.

I used TaxAct last year for my Saver's Credit and it calculated everything correctly. Just make sure you enter your contributions accurately and answer all the questions. The software should handle the income phaseouts and percentages correctly.

Thanks, this is super helpful. So if I understand correctly - transferring to Robinhood isn't taxable, but I need to make sure I have documentation ready for my cost basis when I do sell, since Robinhood won't have that info? Would it make more sense to sell on my current exchanges where at least some transaction history exists, rather than moving to Robinhood first?

That's exactly right - transferring isn't taxable, but you need to document your cost basis for when you do sell, since Robinhood won't have that information. As for whether to sell on current exchanges versus transferring to Robinhood first, that's a great question. There's a potential advantage to selling on exchanges where you have some transaction history, as you could potentially have more documentation to support your reported cost basis. However, if those are foreign exchanges, they might not issue U.S. tax forms, which could create other complications. If your current exchanges can provide transaction history reports that show your purchases, that documentation could be valuable regardless of where you ultimately sell. The key is having a defensible way to calculate and document your gains.

Is that true even for transactions that happened before they became a permanent resident? I thought you only had to worry about US taxes once you actually became a resident.

Wait really? I had no idea about quarterly payments! So even though I'm filing for 2024 now, I'm supposed to already be making payments for 2025? How do I even calculate how much to send if I don't know exactly what I'll make this year?

That's right! For 2025 income, you need to make four payments throughout the year. You have a couple of options for calculating how much to pay. The simplest is to take your total expected tax for the year and divide by 4. You can base this on what you expect to earn this year. Alternatively, you can use the "safe harbor" provision - if you pay either 90% of this year's tax or 100% of last year's tax (whichever is smaller) through withholding and estimated payments, you won't face penalties. So once you file your 2024 taxes, you could use that amount as your guide for 2025 payments. The IRS Form 1040-ES has worksheets to help calculate this. It seems complicated at first, but it gets easier after your first year!

Seconding FreeTaxUSA! The self-employment section is really straightforward. Plus it's way cheaper than TurboTax. They have good explanations about what counts as a business expense too. I was able to deduct part of my phone bill, internet, computer, camera equipment, editing software, and even some travel costs related to content I was making.