Day 23 still nothing... IRS playing hide and seek with these letters fr

I'm on week 3 waiting for mine too! Called the 800-830-5084 number yesterday and they said if it's been more than 4 weeks you can request they send another one. The rep also mentioned checking your online IRS account to see if there's an option to verify through ID.me instead of waiting for the letter. Might be worth looking into if you're getting anxious about the wait like I am!

Just wanted to add something that might help with the complexity everyone's mentioning - consider opening a US brokerage account once you become a US tax resident rather than keeping everything in German accounts. I made the mistake of keeping my European broker when I moved here for grad school, and it created a reporting nightmare. US brokers automatically generate the tax forms you need (1099s) and handle cost basis tracking, which makes filing much simpler. Also, regarding the crypto tracking that Giovanni mentioned - I use Koinly to aggregate all my crypto transactions from different exchanges. It connects to most major platforms and generates the tax forms automatically. Still need to be careful about the international reporting requirements, but at least the transaction tracking becomes manageable. One more tip: if you're planning to stay in the US long-term after your PhD, it might be worth talking to a tax professional who specializes in international taxation early on. The decisions you make now about where to hold investments and how to structure things can save you thousands in taxes and headaches down the road.

This is such a comprehensive thread! As someone who went through a similar transition from Germany to the US for my PhD, I want to emphasize a few points that might save you some stress: First, definitely consider getting professional help early. The intersection of J-1 visa status, US-Germany tax treaty provisions, and investment taxation is genuinely complex. I tried to handle it myself initially and made several costly mistakes. Regarding your specific questions about broker choice - it's not just about taxes, but also about compliance. Many German brokers don't provide the specific cost basis information in the format the IRS expects, which can create problems even if you're technically allowed to pay taxes in Germany under certain treaty provisions. For cryptocurrency specifically, keep in mind that Germany has different holding period rules than the US. In Germany, if you hold crypto for more than one year, gains can be tax-free, while the US treats it as capital gains regardless. This creates potential double taxation scenarios that the treaty doesn't fully address. One thing I wish I'd known earlier: start documenting everything NOW, even before you move. Get statements from your German broker showing your cost basis in their format, because once you're dealing with US tax requirements, having that historical data becomes crucial. The tools mentioned here like taxr.ai and Claimyr sound helpful - I ended up paying a lot more to sort things out after the fact than if I'd used better resources upfront.

This is a bit off-topic but make sure whatever brokerage you're using actually allows non-resident aliens if that's your status! I had a friend who was on F-1, started trading with a popular app, then found out later they weren't supposed to be using it as a non-resident. Caused all kinds of headaches at tax time.

Just wanted to add another perspective here - I went through a similar visa transition (F-2 to F-1) a couple years ago. One thing that really helped me was getting a copy of my complete I-94 travel history from the CBP website before trying to figure out my residency status. The substantial presence test calculations can get really complex with visa changes, especially when you're trying to figure out which days count as "exempt" vs "non-exempt." Having the exact entry/exit dates made it much easier to work through the math. Also, since you mentioned you've been here since December 2019, you're probably still within the 5-year exempt period for F-1 students (which started when you switched to F-1 in March 2024). But the F-2 time might have different rules depending on your spouse's/parent's visa status during that period. Given the amount of money you're planning to invest, it's probably worth getting professional advice from a tax attorney or CPA who specializes in international tax issues. The wrong classification could cost you way more in taxes than the consultation fee, especially with the dividend withholding differences others mentioned.

If your bonus pushed you from the 22% to the 24% bracket, for example, remember that our tax system is progressive. Only the dollars that fall into that higher bracket get taxed at the higher rate. The rest of your income is still taxed at the lower rates of the brackets below it. But a large bonus can definitely cause underwithholding if your employer only withheld at the standard 22% supplemental wage rate. For 2025, single filers hit the 24% bracket at $95,376, the 32% bracket at $182,101, and the 35% bracket at $231,251. Married filing jointly has different thresholds.

I went through this exact same situation last year! Got a large bonus that was about 30% of my salary and ended up owing $2,100 even though my employer withheld taxes. What helped me understand it was realizing that the 22% flat withholding rate on bonuses is often not enough when you factor in state taxes, FICA taxes on the bonus amount, and how it affects your overall tax bracket. One thing that caught me off guard was that my bonus also pushed me over the income limit for some tax credits I'd been getting in previous years. The loss of those credits added to what I owed on top of the underwithholding issue. For this year, I updated my W-4 to have extra withholding throughout the year to cover any bonus I might receive. I'd rather get a smaller refund than owe a big chunk again. Also consider making a quarterly estimated payment if you know a bonus is coming - you can avoid underpayment penalties that way.

This is exactly the kind of situation where keeping meticulous records is crucial! I went through something similar with Boeing stock my grandmother left me. One thing I learned the hard way is that you should also consider the timing of when you gift the shares to your daughter. If she's starting college next year, think about her income level - if she's in a lower tax bracket, the capital gains tax rate when she eventually sells could be more favorable (potentially 0% or 15% instead of 20%). However, this could also affect her financial aid eligibility since assets in the student's name are weighted more heavily than parent assets in FAFSA calculations. You might want to consider whether it makes sense to sell some shares yourself first and gift the cash instead, or use a 529 education savings plan transfer. Each approach has different tax implications. Given the complexity with the multi-generational gifting and potential DRIP complications others mentioned, I'd really recommend consulting with a tax professional who specializes in estate and gift planning before moving forward.

Great question! As a newcomer to this complex topic, I'm learning a lot from this discussion. One thing I'm wondering about is whether there are any state-level implications to consider in addition to the federal tax rules everyone's discussing? I live in California, which I know has its own gift and inheritance tax rules. Would the cost basis carryover rules work the same way for state taxes, or could there be additional complications when gifting stock across state lines? For example, if your aunt lived in a different state when she originally purchased the Microsoft shares, or if your daughter will be attending college in another state where she might establish residency? Also, since several people mentioned the importance of documentation - is there a specific format or type of documentation that the IRS expects for gifted securities? I want to make sure I'm prepared if I ever find myself in a similar situation with family stock transfers. This thread has been incredibly helpful for understanding how complex these multi-generational transfers can be!