Worth noting that if you do qualify for TTS, you'll need to make quarterly estimated tax payments on your trading income. This includes both income tax and self-employment tax. I got hit with an underpayment penalty my first year because I didn't realize this.

Great discussion here! I'm in a similar situation as a crypto day trader and wanted to share what I've learned from my CPA about TTS qualification. The key factors they emphasized were: 1. **Frequency and regularity** - You need to trade on a substantial, regular, and continuous basis. Your 20-50 trades per week sounds like it could qualify, especially if you're doing this consistently throughout the year. 2. **Time commitment** - The "substantial" requirement typically means spending several hours daily on trading activities, including research and analysis (not just executing trades). 3. **Intent to profit from short-term price movements** - This is crucial for crypto traders since you need to show you're trading to capture market swings, not holding for long-term appreciation. One thing I learned is that you should start keeping detailed records NOW if you plan to claim TTS for 2025. Document your daily trading time, maintain separate accounts for trading vs. investment activities, and keep receipts for all business expenses. The IRS scrutinizes TTS claims heavily, especially for newer asset classes like crypto. Also consider consulting with a tax professional who has experience with crypto TTS claims before making the election. The self-employment tax implications can be significant, so you want to make sure the Schedule C deductions outweigh that additional tax burden in your specific situation.

Has anyone used a variable premium approach? My accountant suggested structuring the SCIN with a premium that adjusts over time based on remaining life expectancy. He said this might be more defensible than a single fixed premium, especially for longer-term notes.

Great discussion everyone! As someone who recently went through this process with my elderly father, I wanted to add a few practical points: First, timing is crucial. We made the mistake of waiting until my dad was 72 to start exploring SCINs, and by then the required premium was quite high due to his age. If you're considering this strategy, don't wait too long - the younger you are when you establish the SCIN, the lower the premium needs to be. Second, consider the impact on your beneficiaries' basis step-up. With a SCIN, if you die before it's fully paid, your heirs don't get a stepped-up basis in the transferred asset. This could mean higher capital gains taxes for them later. Make sure to factor this into your overall estate planning strategy. Finally, document everything meticulously. We kept detailed records of all appraisals, actuarial calculations, medical records (even routine checkups), and the reasoning behind our premium methodology. When the IRS eventually reviewed the transaction after my father passed two years later, having that comprehensive documentation made the audit process much smoother. The peace of mind was worth the extra cost and complexity. Just make sure you work with professionals who really understand SCINs - not every estate attorney is equally experienced with them.

I'm surprised no one mentioned the ITIN option. Instead of putting "NRA" for your spouse, you can apply for an Individual Taxpayer Identification Number (ITIN) for your spouse using Form W-7. This would allow you to e-file as Married Filing Separately without issues.

I went through this exact situation last year! As a tax preparer, I see this scenario frequently with clients who have spouses abroad waiting for immigration approval. You absolutely should NOT file as "Single" - this could create serious complications with both the IRS and USCIS. Your marital status is documented across government systems, and inconsistencies can raise red flags during the immigration process. Here's what I recommend for your situation: 1. **File as Married Filing Separately** - This is the correct status for your situation 2. **Paper file only** - Write "NRA" where your spouse's SSN would go 3. **Include a statement** explaining your spouse is a nonresident alien with no US income 4. **Consider the timing** - If your education credits are substantial, you might want to explore the 6013(g) election to treat your spouse as a resident, but only if his foreign income is minimal For the education credits issue: You mentioned you're working on your Master's with a research stipend. Depending on your exact situation, you might still qualify for the Lifetime Learning Credit even with MFS status, or potentially the Tuition and Fees Deduction (though that's been on and off in recent years). The paper filing is definitely a pain, but it's the safest approach for your first year. Consider getting an ITIN for your spouse for next year's filing to make the process smoother going forward.

For what it's worth, I abandoned TaxAct after using them for 5 years because of these issues. Switched to FreeTaxUSA and it's been great so far - only $15 for state filing and completely free federal. Much more stable platform.

I'm dealing with the exact same TaxAct nightmare right now! Their website has been completely unusable for weeks and I can't get through to customer service either. Reading through these comments, it sounds like there are actually several workarounds people have found success with. Based on what others have shared here, I'm going to try the mobile app first since that seems like the quickest fix if it works. If that doesn't pan out, I'll probably use one of those document extraction services mentioned to help me switch to a different platform entirely. Thanks everyone for sharing your experiences - it's frustrating that TaxAct has left their customers hanging like this, but at least there are alternatives. Definitely avoiding TaxAct next year regardless of whether they fix these issues!

Quick question about Pell Grants - my school's financial aid office told me something different than what I'm reading here. They said ALL of my Pell Grant is tax-free regardless of how I used it. Is that right? I'm really confused now.

I went through this exact same situation last year with my Pell Grant and three kids! Here's what worked for me: In TurboTax, don't try to enter your Pell Grant under "Wages & Salaries" - that's why it's asking for an employer ID. Instead, go to the "Federal Taxes" section and look for "Less Common Income" or "Other Income." When you find the scholarships/grants section, you'll enter: - Payer: "SCH" (no employer ID needed) - Amount: Only the portion that WASN'T used for tuition, fees, and required books The key thing that helped maximize my refund was that reporting this taxable portion of my Pell Grant actually made me eligible for a much larger Earned Income Tax Credit because of my dependents. Even though I was adding "income," my refund went up by over $800! Make sure you have your 1098-T handy to calculate exactly how much of your grant exceeded your qualified education expenses. That's the only amount you report as taxable income. The software should walk you through this calculation once you're in the right section.