Anyone know if this differs for retirement accounts like an early withdrawal from a CD inside an IRA? I had to take money out early from my IRA CD and got hit with penalties from both the bank and the IRS 10% early withdrawal thing. Super confused about how to handle both on my taxes.

I went through this exact same situation last year with a 12-month CD that I had to break early for emergency expenses. The bank was similarly unhelpful about issuing corrected forms. What worked for me was keeping detailed records of everything - the original CD terms, the penalty calculation, and all correspondence with the bank. I took screenshots of my online banking showing the penalty transaction and printed out the CD agreement that showed how penalties were calculated. On my tax return, I reported the full penalty amount on Schedule 1, Line 18 as others mentioned, and attached a brief statement explaining the situation. I included the penalty amount, the dates involved, and noted that the bank declined to issue a corrected 1099-INT despite the penalty including interest from the prior tax year. The IRS accepted it without any questions. The key is having good documentation to back up your deduction if they ever ask. Don't let the bank's unwillingness to cooperate prevent you from claiming a legitimate deduction!

I think I might have some insight here... When I amended my 2023 return in February, I received two separate payments about 3 weeks apart. The first payment was for the basic tax adjustment, and the second was specifically for the Child Tax Credit portion. The letter should indicate which specific credits or adjustments the second payment covers. It's probably not a typo, but rather the IRS processing different parts of your amendment separately.

This is definitely a split payment situation - totally normal for amended returns! I went through the same thing with my 2023 amendment. The IRS processed my basic refund first, then sent a separate payment for the Earned Income Tax Credit about two weeks later. The letter you received likely breaks down exactly what the second payment covers. If you add $4,092 + $3,809 = $7,901, which is pretty close to your expected $8,000 (the small difference might be interest or a minor calculation adjustment). I'd suggest checking your online IRS account transcript to confirm both payments are showing up there - that'll give you the complete picture of how they processed your amendment.

Another option worth considering is setting up an EFTPS account (Electronic Federal Tax Payment System). There's no fee for using it, and you can schedule payments in advance. I use it for all my quarterly estimated payments - you just need to set it up ahead of time as the enrollment process takes a couple weeks.

Just a heads up that the rules are different for personal tax payments vs. business tax payments. A lot of people wrongly think that ANY fee paid to pay taxes is deductible, but thats not true! The credit card convenience fees are only deductible on Schedule C because their for BUSINESS tax payments. If you pay your regular income tax with a credit card, that fee is NOT deductible for personal taxes due to the Tax Cuts and Jobs Act.

Just a quick tip from someone who's been self-employed for years - make sure your accountant is categorizing those credit card fees correctly. Mine was lumping them under "bank fees" instead of "merchant service fees" which made it harder to track the true cost of accepting payments. I started specifically breaking out payment processing fees as their own line item which helped me negotiate better rates with my payment processors. When you can show them exactly how much you're spending, it gives you leverage! Also, consider shopping around for better rates. I switched from PayPal to a different processor and saved almost 1.2% per transaction, which added up to over $3,000 saved last year.

Has anyone considered accepting ACH transfers instead of credit cards? The fees are WAY lower (like 0.5-1% instead of 3-4% for credit cards). I started offering a small discount to clients who pay via ACH, and about 40% of them have switched over. Saved me thousands in processing fees.

Anyone know if there's a difference in refund amounts typically between filing 1040 vs 1040NR for students? I filed 1040 last year cuz that's what turbotax recommended but now wondering if I should have done 1040NR instead. My country (india) has a tax treaty with US so maybe i missed out on some benefits?

As someone who went through this exact same confusion with my F-1 status, I can confirm what others have said - the 5-year exempt individual rule is key here! Your roommate should definitely file 1040NR for his first 5 calendar years in the US, regardless of being here over 183 days. The W-2 from his on-campus job doesn't change which form to use - nonresidents can still receive W-2s and file 1040NR. For the South Korea tax treaty, there are specific benefits for students that he can only claim on the 1040NR form. Article 20 of the US-Korea treaty typically covers student income exemptions. One thing I learned the hard way - make sure he checks if his university incorrectly withheld FICA taxes (Social Security/Medicare) from his paychecks. F-1 students are generally exempt from FICA for their first 5 years, so if they withheld these taxes, he can get a refund by filing Form 843 with his university payroll office. The tax software like TurboTax often gets this wrong for international students, so definitely stick with 1040NR for now. Good luck!