I learned the hard way that CDs can be reported differently depending on the institution. TD Bank credits my interest monthly even on their 5-year CDs, Chase only pays at maturity, and Capital One lets you choose! Almost messed up my estimated payments because of this. Worth calling each bank directly to confirm.

This is such a helpful thread! I'm dealing with a similar situation where I have multiple CDs from different banks with varying terms. What I've learned from my own research and talking to a tax professional is that the key document to look for is your CD agreement or disclosure statement - it should clearly state the "interest payment method" or "interest crediting frequency." One thing I'd add to the great advice already given: if you're doing estimated quarterly tax payments like the original poster, make sure to track not just WHEN the interest will be credited, but also HOW MUCH. Some CDs have promotional rates for the first few months that then drop to a lower rate, which can throw off your calculations. Also, for anyone considering ladder strategies with multiple CDs, I've found it helpful to create a simple spreadsheet tracking each CD's maturity date, interest payment schedule, and expected 1099-INT reporting. This makes it much easier to plan your quarterly estimated payments and avoid underpayment penalties. The "constructive receipt" rule mentioned earlier is really the key concept - you're taxed when the money becomes available to you, not necessarily when you physically receive it in your hands.

Does anyone know what happens if I just dissolve this foreign corporation without filing a final non-dormant 5471? I'm in a similar situation - keep paying to file forms for a dormant company because I'm afraid of the headache of dissolution. But it's been dormant for 8 years now - wondering if I can just let it go and stop filing.

I've been dealing with a similar situation for the past 6 years with a dormant UK subsidiary. What finally convinced me to try doing it myself was realizing that my CPA was literally just copying the same information year after year - basically charging me $750 to update dates on an identical form. For anyone hesitant about the DIY approach, I'd recommend starting by comparing your last few years of filed 5471s. If they're nearly identical (which they should be for truly dormant entities), that's a good sign the form is straightforward enough to handle yourself. One thing I learned the hard way - make sure you're crystal clear on what "dormant" actually means to the IRS. My corporation had a small bank account that earned like $12 in interest one year, and I almost filed it as dormant when technically it wasn't. The interest income, even though tiny, would have made it non-dormant for that year. Caught it just in time after doing more research. The peace of mind from understanding exactly what you're filing (rather than just trusting someone else did it right) has been worth the effort for me.

Filed on February 18th with my purple Wisely card and still waiting here too! This is my first year using this card instead of my regular bank account, so I wasn't sure what to expect for timing. Reading through everyone's experiences is really helpful - sounds like there's quite a bit of variation even among people using the same card type. I'm at about 17 days since acceptance, so hopefully I'm getting close based on what others are sharing. Thanks for starting this thread, it's nice to know I'm not the only one checking my balance obsessively!

I'm in a similar situation as many of you! Filed on February 25th with my purple Wisely card and still waiting at day 15. This is actually my second year using the Wisely card - last year I got my refund in exactly 21 days, so I'm hoping for similar timing this year. What's interesting is that I'm also an independent contractor like the original poster, and I did notice last year that my refund seemed to come right on schedule despite having Schedule C income. I've been using the "Where's My Refund" tool daily (probably too much!) and it's still showing "processing." Thanks for creating this thread - it's reassuring to see I'm not the only one anxiously waiting and checking balances multiple times a day!

Great advice from everyone here! I went through a similar situation last year (Nevada resident with internship in Oregon), and I wanted to add a few practical tips that helped me: 1. Keep detailed records of your work dates and location - I created a simple spreadsheet tracking which days I worked in California vs any remote work days from Arizona. This was super helpful when filling out the forms. 2. Don't panic about the "double taxation" - it sounds scary but the credit system really does work. I actually got a small refund from Oregon even though I was worried about owing money. 3. File early if possible! Multi-state returns can take longer to process, and if there are any issues, you'll want time to resolve them before the deadline. 4. Consider the standard deduction differences between states - California's standard deduction might be different from Arizona's, which could affect your overall tax situation. One last thing - if you had any moving expenses related to your internship (even temporary housing), keep those receipts. While the federal moving expense deduction was eliminated for most people, some states still allow it for temporary work assignments. Good luck with your returns!

Just wanted to share my experience since I went through almost the exact same situation last year - Arizona resident with a summer internship in California earning about $13,500. The advice here is spot-on, but I'll add a few things that caught me off guard: First, California's nonresident return (540NR) was actually pretty straightforward once I got started. The tricky part was making sure I only reported the income I earned while physically present in California. Since you mentioned earning $12,800 over three months, that should all be California-sourced income. Second, Arizona's credit for taxes paid to other states worked exactly as described - I used Form 301 (Credit for Tax Paid to Another State) along with my Form 140. Just make sure you have your completed California return handy because you'll need those exact numbers. One thing nobody mentioned - if you're still claimed as a dependent by your parents, make sure they don't accidentally claim your internship income on their return. I had to file an amended return because my parents' tax preparer included my W-2 with theirs by mistake. Also, start gathering your documents now if you haven't already. You'll need your W-2 showing California wages and withholding, and if you moved to California temporarily, keep any lease agreements or receipts that show your temporary residency status. The whole process took me about 2 hours using TurboTax, and I actually got refunds from both states because they had over-withheld. Don't stress too much - the system really does work to prevent double taxation!

Don't forget about Section 1060 allocation rules! The way you and the buyer allocate the purchase price across different assets can dramatically impact your tax situation. Goodwill is a Class VII asset under these rules, but how you document and support that allocation matters. Make sure your purchase agreement clearly specifies how much of the total consideration (both cash and stock) is specifically for goodwill versus other assets being transferred.

I've been following this thread with great interest since I'm dealing with a similar LLC sale situation. Based on what you've shared about it being an LLC taxed as partnership selling to a C-Corp, your accountant might be correct about the different tax treatment. The key issue is that when a partnership interest holder receives stock from a C-Corp buyer, it often doesn't qualify for the same favorable treatment as a straight asset sale. The stock portion might be viewed as a taxable exchange rather than a sale, which could result in ordinary income treatment depending on how it's structured. However, there are still ways to potentially optimize this. Look into whether the transaction can be structured as an installment sale for the stock portion, which might help spread the tax impact over time. Also, make sure your Section 1060 allocation clearly separates goodwill from any other intangible assets - sometimes what gets lumped together as "goodwill" actually includes other items that have different tax treatment. Have you considered getting a second opinion from a tax attorney who specializes in business transactions? The tax implications are significant enough that it might be worth the additional professional fees to explore all options before finalizing.