Taxes & Returns

U.S. tax rules change frequently, but the good news is that most of those shifts mainly affect higher-income earners or very complicated deductions. For simple filings with small balances, most people manage fine just by using reliable tax software. Honestly, an expensive accountant is usually only necessary if you have tricky income sources, detailed itemized deductions, or messy state-specific complications.

You are correct that if you're a U.S. taxpayer working remotely from another country, it is extremely important to constantly keep an eye on how many days you spend working there.

Additionally, you need to meticulously maintain great records of where you live, your travel dates, and all your foreign income. Why? This evidence is critical for passing the Physical Presence Test or proving you have a solid tax home outside the U.S.

To stay on the right side of the law while ensuring you take advantage of every tax break and avoid being taxed twice, you should absolutely consult a CPA who truly understands expat taxes!

I have one question regarding this as well:

If RSUs were granted while I was working overseas but vest after returning to the U.S., how does the IRS determine which portion is subject to FICA? Is the entire vesting value taxed, or only the part tied to my U.S. service period?

Freelancing offers freedom, but managing finances can be tough. Handling taxes, insurance, and retirement alone is challenging, especially during slow periods or economic downturns. Freelancers miss the security of traditional jobs, so having a strong financial plan is essential.

You can check your refund status using the official IRS “Where’s My Refund?” tool online or through the IRS2Go mobile app. Enter details like your Social Security number, filing status, and exact refund amount. The IRS typically issues refunds within 21 days of filing an e-return.

HSAs give you a triple tax benefit; they let you save for medical costs with pre-tax money. Your medical bill contributions and withdrawals are tax-free, lowering your taxable income.

Small businesses are mandated to withhold federal income, Social Security, and Medicare taxes from employee pay. Use IRS Publication 15 for guidance.

File Form 941 every 3 months and Form 940 once a year. Failure to comply can lead to fines and interest charges, such as those incurred for late Form 941 filings.

The type of federal tax form you need to file will depend on your business structure.

For Sole Proprietorship, File Schedule C (Form 1040). For partnerships and companies, they must use particular forms, such as the Schedule K-1 and corporate tax return (Form 1120).

In your case, I believe you are the owner, so proceed to file Schedule C (Form 1040).

When hiring W-2 workers, you must manage their payroll taxes, including Social Security, income, and Medicare contributions, and provide additional benefits such as unemployment insurance and health insurance.

However, 1099 contractors bear the responsibility for their own taxes and receive fewer benefits. W-2 workers have more control over their work, despite contractors offering more flexibility and fewer administrative tasks.

If your company wants greater control, then choose W-2; if your company needs more flexibility, then 1099 may be better.