Pro tip from someone who's been on unemployment multiple times - when you apply, elect to have federal taxes withheld. Seriously. Otherwise you'll be hit with a fat tax bill next year and it SUCKS.

Just to add some reassurance - I was in almost the exact same situation last year. Filed my 2022 taxes in March while already collecting unemployment, and my refund came through completely normal with no delays or issues. The IRS processes your current year return based solely on that year's income and withholdings, so unemployment you're collecting now won't impact it at all. The only thing I wish I'd known earlier is to immediately opt for tax withholding on unemployment benefits. I thought I'd be fine since it was "just temporary" but ended up on unemployment longer than expected. When tax time rolled around this year, I owed about $800 because I hadn't had any taxes withheld from my unemployment payments. Lesson learned! Good luck with the job search - you've got this!

This thread has been incredibly helpful! I'm currently in year 2 of my F-1 program and have been putting off opening a CD because I was overwhelmed by the tax implications. Reading through everyone's experiences has given me the confidence to move forward. A couple of additional points I'd like to add based on my research: **Documentation tip**: When you submit your W-8BEN to the bank, ask for a stamped copy for your records. I learned this from my international student advisor - having proof that you submitted the form correctly can be helpful if there are any disputes later about withholding or tax form generation. **ITIN vs SSN**: Make sure you're using the correct taxpayer identification number on your W-8BEN. If you have an SSN from on-campus employment authorization, use that. If you only have an ITIN, that's fine too, but be consistent across all your tax documents. **Rate shopping**: I've been comparing rates and found that some credit unions near universities offer competitive CD rates and tend to be more experienced with international student accounts. Might be worth checking out in addition to the major banks. Thanks to everyone who shared their experiences with the various services mentioned (taxr.ai, Claimyr) - those sound like they could be real time-savers come tax season. The IRS phone situation is definitely frustrating! Looking forward to finally opening my CD account with much more confidence now.

This has been such an informative discussion! As someone who's been putting off investing in CDs due to tax confusion, I really appreciate everyone sharing their experiences. One thing I'd like to add that I learned from my university's international student services office: they actually maintain a list of local banks and credit unions that are experienced with F-1 student accounts. It might be worth checking with your school's international office before choosing where to open your CD - they often have insights about which institutions handle the tax documentation correctly and which ones tend to cause problems. Also, regarding the W-8BEN form, I'd recommend taking a photo of the completed form before submitting it to the bank, in addition to getting that stamped copy. I had a situation where my bank claimed they never received my W-8BEN (even though I had submitted it), and having a photo of the completed form helped resolve the issue quickly. @Nora Brooks - given all the great advice in this thread, it sounds like you're well-prepared to move forward with your CD investment! Just make sure to follow up with PNC in December to confirm they have your non-resident status properly documented in their system before tax season.

idk why they gotta make everything so complicated with these codes. just tell us whats happening in plain english smh

Code 290 is basically the IRS confirming they've processed your return and assessed your tax liability. It's usually a good sign! The amount next to it should match what you reported on your 1040. If it shows $0.00, that means no additional tax was assessed and your return was accepted as filed. Keep an eye out for a 846 code next - that's the refund issued code everyone's waiting for! 🤞

Quick question - I heard somewhere that forming an S-Corp instead of an LLC can save on taxes? I'm currently a single-member LLC but wondering if I should change how my business is taxed.

Great question about LLC deductions! As others have mentioned, the key is that expenses must be "ordinary and necessary" for your business. I'd also add that you need to be careful about the business vs. personal use distinction - it's not just about percentages, but about maintaining proper records. One thing I haven't seen mentioned yet is the importance of keeping your LLC properly maintained from a legal standpoint. If you're mixing personal and business expenses without clear documentation, or not maintaining proper corporate formalities, you risk "piercing the corporate veil" which could eliminate your LLC's liability protection entirely. For official guidance, definitely start with IRS Publication 535 as Romeo mentioned, but also check out Publication 334 (Tax Guide for Small Business) which has specific sections on LLCs. The IRS website also has a business expenses section that's pretty comprehensive. My advice: when in doubt, err on the side of caution. The penalties for claiming improper deductions can be severe, and the stress of an audit isn't worth trying to push borderline expenses through.

i worked at a nonprofit 4 years and this comes up ALL THE TIME lol!! ppl think nonprofit workers get some magical tax break. nope! we pay taxes just like everyone else! the only difference is the org itself doesn't pay income tax. we even have the exact same withholding on our paychecks as any other job!! i got so tired of explaining this to people who thought i was getting some special government handout 🙄

This is such an important clarification! I'm a CPA who works with several nonprofits, and this misconception comes up constantly. To add to what others have said - the confusion often stems from people mixing up the organization's tax-exempt status with employee taxation. Your $78,000 salary is subject to all the same taxes as if you worked at a for-profit company: federal income tax, state income tax (if applicable), Social Security, and Medicare taxes. The withholding you're seeing is correct. One thing to keep in mind as a nonprofit executive is that you'll want to be extra careful about documenting any business expenses you might deduct, since the IRS does pay closer attention to compensation and expense reporting at tax-exempt organizations. But your basic tax obligations are identical to any other employee. The board members who suggested otherwise were likely thinking of the organization's tax status, not your personal tax situation. It's a very common mix-up!