Just want to add one more important point that I haven't seen mentioned yet - if you're doing tax-loss harvesting at year end, the trade date rule becomes even more critical. I learned this the hard way when I tried to realize some losses on December 31st to offset my gains, but I forgot about the wash sale rule. Since I had bought the same stock again in early January (thinking it was a new tax year), the IRS treated it as a wash sale because both the sale and repurchase happened within the 30-day window when you count by trade dates. So for anyone doing last-minute tax planning, remember that it's not just about which year your gains/losses fall into - you also need to think about wash sales if you're planning to buy back similar positions early in the new year. The 30-day clock starts ticking from the trade date, not settlement.

Great discussion here! As someone who got burned by this exact issue a few years back, I can confirm everything said about trade date vs settlement date. One thing I'd add that might help OP and others - if you're using tax software like TurboTax or FreeTaxUSA, they usually have a specific section for "year-end stock transactions" that walks you through this exact scenario. The software will ask you to enter the trade date specifically, not the settlement date. Also, for future reference, if you want to push capital gains into the next tax year, you need to execute the trade in the new year, not just have it settle then. So if you had waited until January 3rd to actually place the sell order (not just let December 30th trade settle), then it would count for next year's taxes. OP, since your trade happened December 30th, you'll definitely need to report that $8,400 gain on this year's return. Might want to start setting aside about 15-20% for capital gains tax depending on your income bracket. Better to be safe than sorry come April!

Don't worry Chloe, you're definitely not alone in this confusion! I had the exact same panic when I got my first 1042-S form as a UK investor. The key thing to understand is that this form is actually proof that everything was handled correctly - Robinhood automatically withheld the required US tax from your dividends before paying you the rest. For your small amount (£13 dividends, £4 withheld), you absolutely don't need to file anything with the IRS or worry about breaking any laws. Since you mentioned you've never earned enough to pay UK tax, you're likely well under the personal allowance threshold, so you probably don't need to report this tiny amount to HMRC either. Just keep the form safe for your records. Going forward, I'd recommend checking that you have a proper W-8BEN form completed with Robinhood. This should reduce your withholding rate from 30% to 15% thanks to the UK-US tax treaty. Won't make much difference now, but as your investments grow over the years, that 15% savings really adds up! Trust me, the IRS has much bigger concerns than chasing UK students over £4 in tax. You're doing everything right - welcome to international investing!

Just wanted to add my experience as another UK investor who went through this exact same confusion! I remember getting my first 1042-S form about two years ago and immediately googling "am I going to prison for tax evasion" because I had no clue what it meant. What everyone else has said is spot on - the form is basically just a receipt showing that Robinhood did their job correctly by withholding US tax from your dividends. For your amount (£13 in dividends with £4 withheld), you definitely don't need to stress about filing anything with the IRS or HMRC. One thing I wish I'd known earlier though - make absolutely sure you get that W-8BEN form sorted with Robinhood if you haven't already. I was unknowingly paying 30% withholding for my first year of investing instead of the 15% I was entitled to under the tax treaty. Once I got it fixed, I immediately noticed more money hitting my account from dividends. Also, just as a heads up for future reference - keep all your 1042-S forms organized by year. As your investments grow and you start receiving larger dividend amounts, you'll eventually need them for UK tax reporting when you cross the personal allowance threshold. Having them all in one place makes life much easier! You're definitely not going to end up on any blacklist over this. The fact that you're asking questions and being responsible about it shows you're handling everything properly. Welcome to the slightly confusing but ultimately rewarding world of international investing!

Most people here see funds hit SBTPG same day as the DDD on transcript, then 1-2 days for it to reach your bank. Don't count on it being faster. Budget assuming you won't have it until 2 days after your DDD. Their system is reliable but not instant. The delay is just part of choosing the fees-from-refund option.

I understand the anxiety about timing, especially as a recent graduate! From what I've seen in this community, SBTPG is pretty consistent with their processing. Since your transcript shows a DDD of 4/17, you should expect SBTPG to receive the funds either on 4/17 or within 24 hours after. Then it's typically another 1-2 business days before it hits your bank account. So realistically, you're looking at having your refund by 4/19 at the latest, possibly as early as 4/17 if everything processes smoothly. I'd recommend setting up an account on the SBTPG website to track the status - it really helps with the waiting game! Just remember that weekends can add an extra day to the timeline if your DDD falls on a Friday.

I'm dealing with a similar situation but with cryptocurrency payments from international clients. Even though I don't get any official tax forms for crypto transactions, I've been reporting everything as business income. The IRS has made it pretty clear that ALL income needs to be reported regardless of the payment method or whether you receive tax documents. One thing that's helped me is keeping detailed spreadsheets with client names, project descriptions, payment dates, and amounts. This creates a clear paper trail showing these are legitimate business transactions, not gifts or personal transfers. If you ever get audited, having organized records will be crucial. Also consider that continuing to use F&F for business payments could potentially get your PayPal account restricted or closed. PayPal has been cracking down on misuse of their personal payment options for commercial transactions. Better to switch to proper business payments now and avoid potential account issues down the road.

Just want to echo what everyone else is saying - you absolutely need to report that $8,700 as business income regardless of how it was sent through PayPal. The IRS doesn't care about PayPal's internal categorization of payments; they care about the economic substance of the transaction. You're providing design services and getting paid for them, so it's taxable business income. I'd strongly recommend switching to proper PayPal business transactions going forward. Yes, your clients might pay slightly higher fees, but you'll avoid potential issues with PayPal's terms of service and create cleaner records for tax purposes. Most legitimate business clients understand and accept this. For this year's taxes, report the income on Schedule C along with your business expenses. Keep detailed records of everything - client communications, project files, invoices if you have them. The fact that you're asking these questions shows you want to stay compliant, which is the right approach. Better to pay the taxes you owe than risk penalties and interest later if the IRS catches up with you.

What about using the "last-month rule" for HSA contributions? If your plan qualifies as an HDHP on December 1st, you can contribute the full year's amount. But you have to remain HSA-eligible for the "testing period" (through Dec 31 of the following year). If i were you id double check if your wife's new plan (after the company acquisition) might qualify as an HDHP, even if her old one didnt.

This is such a common confusion! I went through something similar when my spouse switched jobs mid-year. Here's what I learned from my CPA: The key issue is that for HSA purposes, you're only eligible for family contribution limits if you have actual family HDHP coverage OR if both spouses have qualifying individual HDHP coverage. Having separate individual plans where only one qualifies as an HDHP means you're limited to the individual contribution amount. Since your wife's HR confirmed her plan is NOT an HDHP (even with the high deductible), you're definitely looking at individual limits only. The good news is you caught this before the tax filing deadline, so you can reverse the excess without the 6% penalty. One thing to watch out for - when you reverse the excess contribution, make sure your HSA administrator also removes any earnings on that excess amount. Those earnings need to be reported as income for the year they're distributed. Also, if your wife gets new coverage through the acquisition that IS an HDHP, you could potentially use the last-month rule for future years, but that wouldn't help with your 2024 situation.