Don't forget that HYSA interest is taxed at your ordinary income tax rate, not the lower capital gains rates. This surprises some people who are new to these accounts.

Great question! You're absolutely correct about how HYSA interest is taxed. Since you mentioned this is your first HYSA, here's a helpful tip: keep your monthly statements throughout the year so you can track your interest earnings. Some people like to set aside a small percentage of each interest payment (maybe 20-25% depending on your tax bracket) in a separate account to cover the taxes owed. Also, if you end up earning significantly more interest than expected due to rate increases or growing your balance, you might want to consider whether you need to make quarterly estimated tax payments. But with your projected $185, you're probably fine just handling it when you file your annual return. The IRS generally doesn't require quarterly payments unless you expect to owe $1,000 or more in additional taxes.

Just wanted to share my experience as someone who went through this exact process last year with my two kids on an H1B visa! You can definitely apply for ITINs and claim your children as dependents on the same tax return. Here are a few key tips from my experience: 1. Make sure you're using the most current W-7 form - the IRS updates it periodically and they'll reject outdated versions 2. For the supporting documents, certified copies from the issuing agency work just as well as originals and are much safer to mail 3. When filling out your 1040, write "ITIN Applied For" in the SSN field for each child 4. Processing typically takes 7-11 weeks, but you can still e-file your return while the ITIN applications are pending The Child Tax Credit alone made this worth doing immediately rather than waiting until next year. For two kids, you're looking at potentially $4,000-$6,000 in tax benefits depending on your income level. One thing I wish I'd known earlier - if you have any issues or questions after submitting, calling the IRS directly can be nearly impossible. Consider keeping documentation of everything you submit and maybe look into services that can help you get through to an actual IRS agent if needed. Good luck with your first tax filing as a US resident!

This is such valuable information for first-time filers! I'm in a similar situation - just got my H1B approved and will be filing taxes as a resident for the first time this year. One thing I wanted to add that might help others: I called several tax preparation services in my area, and many of them have experience with ITIN applications and can help walk you through the process. Some even offer to mail your documents using certified mail with tracking, which gave me more peace of mind than regular mail. Also, just a heads up - make sure to keep copies of absolutely everything you submit. I've heard stories of applications getting lost in the mail, and having copies makes it much easier to resubmit if needed. The timeframe is definitely important to keep in mind. Since you're filing for 2024 taxes, you have until the tax deadline to submit everything, but the earlier you get your ITIN applications in, the better. The IRS processes them in the order they receive them, so submitting in January/February typically means faster processing than waiting until March or April. Has anyone had experience with the IRS Taxpayer Assistance Centers for ITIN applications? I'm wondering if it's worth making an appointment to have them review everything in person before submitting.

Whatever you do, don't use those sketchy "tax resolution" companies you see advertising on TV or radio. My brother was in a similar situation (5 years unfiled) and paid one of those companies $3,000 upfront. They literally did NOTHING except file a basic power of attorney form and then kept asking for more money for "additional work." Just file the returns yourself using good tax software or find a reputable local EA (Enrolled Agent) or CPA who specializes in back tax returns. You'll save thousands and actually get your situation resolved.

I was in almost the exact same situation a few years ago - hadn't filed for 3 years and was paralyzed by fear and confusion about where to start. Here's what I learned from going through the process: First, don't wait any longer! File your 2024 return on time in April 2025 - there's no benefit to adding another year to your backlog. You can work on the back years simultaneously. Since you've had taxes withheld from your paychecks, you're likely due refunds for most or all of those years, which means you probably won't face penalties (the IRS only penalizes when you owe). However, you need to file soon because refunds expire after 3 years - you've already lost any 2020 refund permanently. Here's my recommended approach: Start by requesting your wage and income transcripts from the IRS website (they're free) for any years where you don't have your tax documents. Then file the oldest year first and work forward chronologically. The good news is that if you're getting refunds, the IRS will process each year separately, so you don't have to worry about them withholding money from newer years to cover older debts. Each refund will come to you directly. Don't let fear keep you frozen - the reality is almost always better than what you're imagining, especially if you've been having taxes withheld. You've got this!

Has anyone successfully disputed one of these bills completely? I traded my motorcycle and then moved counties two weeks later. Now BOTH counties are trying to charge me property tax!

This is a really common issue that catches people off guard! You're absolutely right to be confused - the property tax system doesn't automatically know about vehicle trades unless you tell them. Here's what typically happens: Property taxes are assessed based on who owned what vehicle on a specific date (usually January 1st in most places). Since you owned that first motorcycle during part of the tax year, you're responsible for paying property tax for the period you owned it. The good news is that most counties will prorate the tax based on your actual ownership period. You'll need to gather your documentation - the original purchase paperwork, the trade-in documents, and any transfer paperwork - and contact your county tax assessor's office. They can usually adjust the bill to reflect only the roughly 2 months you actually owned the bike. Don't just ignore the bill though - unpaid property taxes can lead to penalties, interest charges, and in extreme cases can even affect your ability to renew vehicle registrations. Most tax offices are pretty reasonable about these situations once you provide the proper documentation. Also, keep an eye out for a separate property tax bill for your new motorcycle - that'll be coming too since it's treated as a completely separate taxable item.

This has been such an incredibly helpful thread! I'm in the exact same situation - just started a new job and my spouse runs their own business. I was totally confused about the W4 form until I found this discussion. The advice here is crystal clear: definitely don't check box 2c since that's only for when both spouses have traditional W-2 jobs with employers doing withholding. Since my spouse is self-employed and makes quarterly estimated payments, that box doesn't apply to our situation. What I'm planning to do based on everyone's advice: 1. Use the free IRS withholding estimator to calculate additional withholding for line 4(c) 2. Make sure I'm using my spouse's NET business income (after expenses) not gross revenue 3. Account for the higher tax rate on self-employment income (including SE tax) 4. Plan to review and adjust quarterly since business income can fluctuate I really appreciate everyone sharing their real numbers and experiences - it makes this so much less intimidating! The hybrid approach where you do some additional withholding plus coordinate with the spouse's quarterly payments seems like the smartest strategy for handling the variability in self-employment income. Going to tackle the IRS estimator this weekend and get my W4 updated. Thanks to everyone who contributed their knowledge here - this thread should definitely be bookmarked for anyone dealing with mixed employment situations!

This has been such a comprehensive and helpful discussion! I'm also dealing with this exact situation - I have a W-2 job and my spouse just started their own marketing consulting business this year. Reading through all the advice here, I'm feeling much more confident about how to handle my W-4. The consensus is definitely clear: don't check box 2c since that's only meant for two traditional W-2 employees, not when one spouse is self-employed. I'm planning to follow the roadmap that's been laid out here: - Use the IRS withholding estimator with both my income and my spouse's projected net self-employment income - Add the calculated amount to line 4(c) for additional withholding - Remember that self-employment income gets hit with both income tax AND the 15.3% SE tax - Review quarterly since consulting income can be unpredictable What I found most valuable was seeing people's actual experiences and dollar amounts rather than just theoretical advice. The idea of doing a hybrid approach with some additional withholding from my job plus coordinated quarterly estimated payments makes a lot of sense for managing the variability in consulting income. Thanks to everyone who shared their real-world experiences - this thread has been incredibly educational and should definitely help others who find themselves in this same confusing situation!