Just want to add my 2 cents as someone who works at a credit union. The W-9 process for most banks is super simple now - usually just entering your SSN and checking a box during the online application. If it makes you feel better, the bank already has your SSN and tax info if you have other accounts with them. The W-9 requirement is just a formality to make sure they have proper documentation for IRS compliance. Don't overthink it! High yield savings accounts are great for building money, and the tax stuff is actually pretty straightforward. You'll get a 1099-INT in January showing your interest earned, and you just enter that amount on your tax return. It literally takes 2 minutes.

Thanks everyone for all the helpful responses! This has cleared up so much confusion for me. I was definitely overthinking the whole W-9 situation. @Malik Johnson - your explanation about the difference between W-9 and 1099 forms was super clear. I get it now - W-9 is what I fill out when opening the account, and 1099-INT is what I'll receive later showing my interest income. That makes perfect sense! @Anastasia Sokolov - I had no idea about the backup withholding thing! That's definitely motivation to make sure I fill out the W-9 correctly. 24% is a lot to have withheld, even if I'd get it back eventually. @Sean O'Connor - it's reassuring to hear from someone who works at a financial institution that this is all routine. You're right that I'm probably overthinking it. I think I'm ready to move forward with opening the Capital One HYSA now. I'll make sure to use my full name exactly as it appears on my Social Security card when filling out the W-9. Thanks again for all the guidance - this community is awesome!

I've been following this thread as someone who went through a similar relocation repayment situation last year, and wanted to add a few practical tips that might help: First, when calculating whether to use the Section 1341 credit vs. deduction method, don't forget to factor in any changes to your filing status or other major tax situations between the original year and repayment year. I was single when I received my relocation package but married filing jointly when I had to repay it, which made the credit method even more beneficial. Second, if your former employer is being difficult about the FICA tax refund, try reaching out to their corporate tax department rather than just HR/payroll. In my experience, the tax folks understood the 941-X requirement much better and were more willing to help once they realized it was a legitimate tax obligation on their end. Finally, start this process early in the tax season if possible. Amended returns take longer to process anyway, and if you wait until close to the deadline, you might run into issues if the IRS has questions or needs additional documentation. I filed my amendment in February and had everything resolved by June, which felt much less stressful than waiting until the last minute. The $3.3k federal refund you're expecting sounds reasonable for a $16k repayment, especially if you were in the 22% bracket when you originally received the income.

I've been through a very similar situation with a relocation package repayment, and I want to emphasize how important it is to get the Section 1341 calculations right. The IRS is pretty strict about the documentation requirements for claim of right situations. One thing I learned the hard way - when you're calculating the tax benefit under Section 1341, you need to use your exact tax situation from the original year, including any other income changes, deductions, or credits that might have affected your marginal tax rate. It's not just a simple percentage calculation. Also, regarding the FICA tax recovery from your former employer - don't let them brush you off. The employer gets to claim a credit for the excess FICA taxes they paid when they file Form 941-X, so this isn't costing them anything. They're legally required to refund you your portion. If they continue to resist, you might want to escalate to their legal or compliance department and reference IRC Section 3402(d) which covers this exact situation. Keep all your documentation organized and make copies of everything before you submit. The IRS sometimes requests additional supporting documents for these types of amendments, and having everything ready speeds up the process considerably.

Has anyone else had issues with custodians allowing crypto in Roth IRAs? I tried to set this up last year and ran into tons of restrictions. Most major brokerages don't offer direct crypto investing in IRAs.

Great question about risk thresholds! From a tax optimization perspective, I'd say any investment you expect to outperform bonds (so roughly 6-8%+ annually) becomes a stronger candidate for Roth placement, especially if it's volatile. The key insight is that Roth IRAs eliminate the tax drag on compound growth. Even your 10x crypto example over 35 years would only be about 6.9% annualized - but in a taxable account, you'd face capital gains taxes that could reduce your effective return by 15-20% or more. In the Roth, you keep 100% of those gains. I'd prioritize Roth placement for: 1) High-growth stocks with minimal dividends, 2) Small-cap or emerging market funds, 3) Sector-specific ETFs (like tech or biotech), 4) Alternative investments like crypto or commodities, and 5) Any investment you might want to rebalance frequently. The beauty is you don't need to predict exact returns - just focus on putting your highest expected growth potential investments in the Roth, and you'll benefit from the tax-free compounding regardless of whether they hit 8% or 15% annually.

This is really helpful information from everyone. I'm dealing with a similar situation but with an added complication - my mother's trust has both traditional investments and a small business (sole proprietorship) that she was running before she passed. The business is still generating some income while I'm trying to wind it down. Does anyone know how the Sec 645 election affects business income taxation? I'm wondering if treating the trust as part of the estate would give me more flexibility in handling the business dissolution and any potential losses from closing it down. The business assets are probably worth about $75k but the timing of selling everything could really impact the tax consequences.

I went through this exact situation with my grandmother's trust earlier this year. With $450k in assets like yours, I'd strongly recommend making the Sec 645 election. Here's why it worked out well for us: The biggest benefit was the extended administration period - you get up to 2.5 years (until the second anniversary of death) versus the typical trust timeline. With investments and real estate, this extra time was crucial for making strategic decisions about when to sell assets for the best tax outcomes. For the vacation property specifically, the election gave us flexibility to time the sale in a way that minimized capital gains impact on beneficiaries. We were able to coordinate the timing with beneficiaries' other income to keep them in lower tax brackets. One thing to consider: make sure you understand the filing requirements. You'll need to file Form 8855 to make the election, and it must be filed by the due date (including extensions) of the estate's first Form 1041. Don't miss this deadline - it's irrevocable once the time passes. Given your asset level and mix of investments plus real property, the administrative flexibility alone probably makes the election worthwhile. The potential tax planning benefits are just a bonus.

Hey! I just went through this exact same situation last semester and totally understand the confusion. You're absolutely right to use your parents' home address as your permanent address on your tax return, even though your W-2 shows your dorm address. The IRS completely understands that students have temporary school addresses, so there won't be any issues with the mismatch. What matters is using the address where you'd want to receive important tax correspondence - and since you live with your parents during breaks and consider that home, it's definitely your permanent address. One thing that really helped me was thinking about it this way: where would I want tax notices or refund checks to go six months from now? Definitely not to a dorm room I might not even be living in anymore! Just make sure to coordinate with your parents about whether they're claiming you as a dependent (they probably are if they're helping pay for school). That's where a lot of first-time student filers run into trouble - make sure you're both on the same page about that dependency status so you don't contradict each other on your returns. You're being really smart by asking these questions upfront. Good luck with your first tax filing - you've got this! 🎓

As a tax professional who's helped many students navigate this exact situation, I want to reassure you that you're asking all the right questions! Use your parents' home address as your permanent address on your tax return - this is definitely the correct approach even with the W-2 showing your dorm address. The IRS receives millions of student tax returns every year with this same "mismatch" and it's completely normal. They understand that students have temporary school addresses while maintaining their permanent residence elsewhere. Your permanent address should be where you maintain your primary ties - voter registration, driver's license, bank accounts, and where you return during breaks. A few key points for first-time student filers: 1. **Dependency status coordination**: This is crucial! Have a clear conversation with your parents about whether they're claiming you. If they provide more than half your support and you're under 24 as a full-time student, they likely can and should claim you. 2. **State tax considerations**: Since you mentioned this is your first time filing, remember that you may need to file state returns in both your home state and school state if you earned income at school. Each state has different rules. 3. **Keep copies at your permanent address**: Store your tax documents at your parents' house, not your dorm. You'll need them for future reference and financial aid applications. You're being incredibly responsible by researching this thoroughly. That attention to detail will serve you well in your tax-filing journey!