As someone who went through this process twice in the past two years, I can share that the 7-day mark is still well within the normal range. The IRS verification system operates on batch processing cycles, not real-time updates. Your verification likely processed correctly, but the transcript updates happen in scheduled waves. I found that checking daily at 5:30 AM actually increased my anxiety - the updates typically appear on Wednesday or Thursday mornings when they do their weekly batch processing. Since you're new to the US tax system, it's worth noting that this verification process is actually a security feature to protect taxpayers from identity theft. The wait is frustrating but normal. I'd suggest giving it until the 14-day mark before calling back, as that's when most cases resolve according to the IRS's own published timelines.

I went through this exact same situation last year as a new US resident! The uncertainty is definitely nerve-wracking when you're still learning how the IRS system works. From my experience and what I've observed in this community, the 7-14 day window is accurate for most cases, but it can extend to 21 days during busy periods. What helped me manage the anxiety was understanding that the IRS has multiple verification queues - some for simple returns, others for complex ones. Since you mentioned needing the refund for credit history purposes, I assume your return is relatively straightforward, which typically processes faster. One tip that worked for me: instead of checking daily at 5:30 AM, try checking on Thursday or Friday mornings only, since that's when most weekly batch updates occur. The daily checking just added stress without providing useful information. Also, since you're new to the US tax system, it might be worth calling the IRS taxpayer assistance line (1-877-777-4778) around day 10-12 just to confirm your verification was properly recorded in their system. Sometimes there can be technical glitches that delay processing, and it's better to catch those early rather than wait the full 21 days. Hang in there - the process works, it's just frustratingly opaque about timing!

One thing nobody mentioned yet is that Coverdell accounts give you WAY more investment options than 529 plans. With a 529, you're usually stuck with whatever investment options your state's plan offers (typically target-date funds and some index funds). With a Coverdell, you can invest in pretty much anything - individual stocks, ETFs, mutual funds, etc. This was a huge factor for me since I wanted more control.

Another consideration is that 529 plans can now be rolled over into Roth IRAs (as of 2024) - up to $35,000 lifetime limit. This is HUGE for flexibility if your kid doesn't use all the 529 funds for education. Coverdells don't have this option.

Has anyone used Sprintax for filing their Non-Resident Alien tax return? My university gives us free access to it, but I'm not sure if it handles these tax treaty situations correctly, especially if there were withholding mistakes during the year.

I went through this exact same situation last year as an F1 student from Canada! The key thing that helped me was understanding that even though you filled out the W-8BEN, your university's payroll system might not be properly configured to apply the tax treaty exemption automatically. Here's what worked for me: I had to go to the payroll office with a printed copy of the specific tax treaty article (Article 20 for Canada, but yours will be different for Malaysia) and explicitly request that they update my withholding status. Sometimes they need to manually override their system to stop the automatic withholding. Also, keep detailed records of everything - all your pay stubs, the W-8BEN you submitted, and any correspondence with the payroll office. If they can't fix it immediately, you'll definitely be able to get a full refund when you file your tax return next year. The IRS is actually pretty good about honoring tax treaty exemptions for F1 students once you have all the proper documentation. Don't give up - this is a really common issue that gets resolved once the right people understand your situation!

This is exactly why I always tell people to pay tax prep fees upfront! The "convenience" of having fees deducted from your refund ends up costing you more money AND delays your refund. Between the $39 SBTPG processing fee and the extra week they hold your money, you're basically paying for the privilege of getting your own money later. For anyone filing next year - just budget to pay the TurboTax fees with a credit card when you file. You'll get your full refund directly from the IRS faster and without any third-party middleman taking a cut. The "convenience" fee is never worth it!

I wish I had found this thread before filing! I had the exact same experience with SBTPG and was completely confused when I saw that name on my bank statement instead of "IRS TREAS." The $39 fee really stings when you realize you're paying extra just to avoid putting the TurboTax fee on your card upfront. What really bothers me is how buried this information is during the filing process. TurboTax makes it sound like you're just deferring payment, but they don't clearly explain that a third party will be handling your refund and taking an additional fee. I spent way too much time worrying that something fraudulent had happened to my refund. Definitely paying the prep fees directly next year - the "convenience" isn't worth the extra cost and delay!

I'm a bit confused about one thing - if I did have a funded Robinhood account with some activity, what tax software is best for handling investment stuff? I've only ever used the free version of TaxAct for my super simple returns, but I'm planning to start investing this year.

Emma, you're absolutely right not to worry about tax forms from Robinhood in your situation. Since you never funded the account or made any trades, there's zero taxable activity to report. Robinhood only generates 1099 forms when there's actual financial activity - like stock sales, dividends received, or interest earned on cash balances. Just creating an account doesn't trigger any tax reporting requirements. You won't receive any forms from them, and there's nothing you need to include on your tax return related to this account. It's essentially like signing up for any other app - no tax implications until you actually start using it for financial transactions. If you do decide to start investing in the future, that's when you'd need to pay attention to the tax documents they send. But for now, you can cross this worry off your list completely!