Thanks for pointing this out! My parents were actually suggesting sending it in smaller chunks over a few months because they thought it would be "easier." I'll make sure to tell them to just do one direct transfer instead. Do you happen to know if they need to fill out any special forms in Vietnam to send such a large amount overseas?

Definitely tell your parents not to split it up! You're right that it could look like structuring, which can trigger all kinds of unwanted scrutiny from both banks and the government. Regarding Vietnam specifically, your parents will likely need to complete forms at their Vietnamese bank explaining the purpose of the transfer and possibly showing documentation of the source of funds. Vietnam has currency control regulations, and for amounts over about $5,000 USD, there are usually additional verification steps. The exact requirements vary by bank, but generally they'll need to provide your information, their relationship to you, and sometimes proof of how they acquired the money (especially for large amounts like $100k). Their bank in Vietnam will guide them through their specific requirements.

Which states still have gift taxes? I thought that was just a federal thing. I'm in Minnesota if that matters.

Are the H&R Block/Liberty courses expensive? Is it worth it compared to just using the free IRS materials someone mentioned above?

The tax courses typically run between $200-400 depending on your location. They're more comprehensive than the free IRS materials and include guided practice with an instructor who can answer questions. The VITA training mentioned above is great for basic returns, but the paid courses go deeper into things like investment income, small business issues, and rental properties. If your situation is simple (W-2 income only, standard deduction), stick with the free materials. If you have investments, freelance income, or rental property, the paid course is worth considering.

This is exactly right. I wasted $350 on a tax course only to realize 80% didn't apply to me. What software do you recommend for someone who wants to learn while doing their own taxes but with some guidance?

Does it matter if I use annual totals or do I have to enter the monthly amounts? My 1095-A has both.

You should definitely enter the monthly amounts rather than annual totals. Form 8962 calculations are done on a month-by-month basis, especially if your coverage or family situation changed during the year. Turbo Tax will walk you through entering each month's values from all three columns on the 1095-A. This might seem tedious, but it's necessary for accurate calculations. If you use annual totals when you had changes in coverage or family size during the year, your Form 8962 calculations will be incorrect and could cause problems with the IRS later.

The repayment amounts are set by law and based on income brackets. It's not negotiable with the IRS unfortunately. The cliff between income brackets can be really steep - a few dollars can sometimes make a big difference. This happened to my sister last year - her income was just $100 over a threshold and it cost her over $1,000 in additional repayment.

Is it better to have more or less withheld though? I always heard you should get your withholding as close as possible to what you'll actually owe. But my dad says I should withhold more so I get a big refund. Who's right?

From a purely financial perspective, it's better to have your withholding match your actual tax liability as closely as possible. When you overwithhold, you're essentially giving the government an interest-free loan of your money throughout the year. However, some people prefer getting a refund because it feels like a "bonus" and helps them avoid the risk of owing money at tax time. It really comes down to your financial discipline and preferences. If having more withheld helps you save money you might otherwise spend, there's some psychological benefit to that approach.

This is a really good point! I made this exact mistake my first year working during college. My withholding was way off because I didn't indicate I was a dependent. OP, definitely check with your parents about whether they claim you on their taxes!

Did you need to get an EIN number to properly employ your nanny? And are you using a specific payroll service that specializes in household employees?

Yes, I had to get an EIN which was surprisingly easy - took about 10 minutes on the IRS website. I received it immediately via email after completing the online form. I use HomePay which specializes in household employees. It's a bit pricier than some general payroll services, but they understand all the household employee nuances like state-specific nanny taxes and how to properly handle non-taxable benefits like transportation reimbursements. They also provide my nanny with professional pay stubs and handle all the quarterly and year-end tax filings. Makes the whole process almost completely hands-off for me.

It's actually $2,500 for 2024 and will likely be around $2,600 for 2025 after inflation adjustment (IRS hasn't announced final 2025 numbers yet). So at $220/month, you're paying about $2,640 annually - possibly just over the threshold. But there's another rule - if your niece is under 18 and childcare isn't her primary occupation, you don't have to withhold FICA taxes. However, you might still need to issue a W-2. Check Publication 926 (Household Employer's Tax Guide) on the IRS website for all the details.