Stupid question maybe, but what exactly is backup withholding and how much do they take? I think I might have this issue too but never understood what it actually means.

Just wanted to add that timing is really important with B notices. The IRS gives banks specific instructions about when to start backup withholding, and while some banks are lenient (like in your case), others are very strict about the deadlines. Since you mentioned wanting to open a high-yield savings account soon, I'd recommend getting this fully resolved before you apply. Some banks will actually check if you have any outstanding B notice issues when you open new accounts, and having an unresolved notice could complicate the process. Also, make sure when you fill out the W9 that you include a brief note explaining that the SSN was corrected in your account on [date] and that you're responding to ensure proper tax reporting. This gives the bank's tax department context about why there was a delay in your response.

As someone who just went through this exact situation last year, I can share what worked for me! My husband and I were both on J visas (him J1, me J2) from South Korea, and I was completely lost about the tax requirements. A few key things I learned that might help: 1. **Double-check your tax treaty benefits** - The US-India tax treaty is quite comprehensive, but make sure you understand which articles apply to dependents. Some benefits are only for the primary visa holder, but others (like certain exemptions) can extend to spouses. 2. **Keep detailed records** - Since you're a nonresident alien, the IRS is much stricter about documentation. Save everything: your visa documents, I-94 records, employment authorization, and any correspondence about your tax status. 3. **Consider the timing** - If you're planning to stay in the US for several years, it might be worth planning for when you'll transition to resident alien status. Sometimes it makes sense to elect to be treated as a resident alien earlier if it's more beneficial. 4. **State taxes matter too** - Don't forget that each state has different rules for nonresident aliens. Some states have their own tax treaties or different treatment of visa holders. The university international office suggestion is spot-on - they often have staff who specialize in exactly these situations and can point you to resources specifically for J visa holders. Good luck!

I'm also on a J2 visa and went through this exact tax confusion two years ago! Reading through all these responses brings back memories of how overwhelming it was to get clear answers. One thing I want to add that might help - when I was dealing with the FICA tax question, I discovered that even though we J2 holders generally have to pay FICA taxes, you should definitely keep track of your quarters of coverage. I use the Social Security Administration's online account (ssa.gov/myaccount) to monitor my earnings record and make sure my employer is correctly reporting my wages. Also, regarding the bank interest question - this caught me off guard my first year. Even the small amount of interest from my savings account (maybe $20) had to be reported on my 1040NR. It seems trivial but the IRS requires you to report all US-source income, no matter how small. For state taxes, I'm in New York and had to file a nonresident state return (Form IT-203) in addition to the federal 1040NR. Each state is different, but don't assume you're exempt from state filing requirements just because you're a nonresident alien for federal purposes. The university international office suggestion is spot-on - they often have relationships with local CPAs who specialize in J visa taxation. That's actually how I found my current tax preparer who understands all these nuances. Way better than the big chain tax services that looked at me like I was speaking a foreign language when I mentioned J2 visa! Good luck with everything - it gets easier once you understand the system!

Don't forget about state taxes too! My wife is a nonresident alien and we file jointly for federal, but some states have different rules. In California where we live, we had to file a separate nonresident state return for her foreign income even though we filed jointly for federal. Check your state's rules!

Just want to add another perspective here - we went through this exact situation last year and successfully filed jointly with the standard deduction. The key thing that helped us was understanding that the election to treat your NRA spouse as a resident is made simply by filing a joint return and including both spouses' worldwide income. You don't need to file any separate forms to make this election - it's automatic when you file Form 1040 jointly. However, you do need to attach a statement signed by both spouses saying you're making this election (this is the part many people miss). One tip: calculate both ways before deciding. We ran the numbers filing separately vs. jointly and the standard deduction savings from filing jointly more than offset the extra tax on my husband's foreign income. But every situation is different depending on income levels and what country the foreign income comes from (tax treaties matter!). The IRS Publication 519 has the clearest explanation of this if you want the official source, specifically the section on "Nonresident Spouse Treated as Resident.

Have you considered just using the federal EIN in place of the state EIN? I did this once years ago when I couldn't get the state number and my return was processed just fine.

I work in payroll and can confirm that @Ana Rusula is absolutely right - never use the federal EIN in place of a state EIN! These are completely separate numbers assigned by different agencies for different purposes. Here's what I'd recommend based on your company spin-off situation: First, check if you have any old pay stubs from before the spin-off - they often contain the state employer ID number. Second, try searching your state's Secretary of State website AND your state's Department of Labor/Employment website, as they sometimes maintain separate databases. If you're in a state like Texas, Florida, or Nevada that don't have state income tax, you might not need a state EIN at all for income tax purposes (though you might still need it for unemployment insurance records). The "APPLIED FOR" suggestion from @Mary Bates is actually the safest route if you can't locate the number through other means. State tax agencies deal with this regularly during corporate restructuring and it won't raise any red flags.

If you're just getting started, this is what I'd focus on: 1) Set aside 30-35% of ALL income for taxes (fed, state, SE tax) 2) Track EVERYTHING business related with an app like Quickbooks Self-Employed 3) Make quarterly payments to avoid underpayment penalties 4) Don't worry about S-corp until you're consistently making ~$100k+ I did my own taxes as a 1099 contractor for 3 years before finally getting an accountant. Once you hit about $80-100k, the potential tax savings with an S-corp start to outweigh the costs of maintaining it.

Don't panic! You absolutely can handle this on your own, especially for your first year. I was in the exact same situation when I started contracting - couldn't find an accountant anywhere and was totally overwhelmed. Here's what I wish someone had told me when I started: **Start simple:** You don't need to figure out S-corps or LLCs right away. Just focus on tracking your income and expenses properly this first year. You can always form an entity later once you understand your income patterns. **Essential first steps:** - Open a separate business checking account (makes everything cleaner) - Start tracking ALL business expenses immediately - home office, internet, phone, computer equipment, software subscriptions, etc. - Set aside 25-30% of every payment for taxes in a separate savings account - Make quarterly estimated tax payments (due dates are Jan 15, April 15, June 15, and Sept 15) **Marriage question:** Don't make major life decisions based on taxes alone! The marriage penalty/benefit depends on both your incomes, so run some scenarios with tax software first. For your first year, I'd recommend using TurboTax Self-Employed or FreeTaxUSA. They're designed for 1099 contractors and will walk you through everything. You can always upgrade to an accountant next year once you have a full year of data and know what questions to ask. You've got this! The first year feels overwhelming, but it gets much easier once you establish good systems.