I'm in exactly the same situation! Filed on 01/28 and my federal refund was deposited within two weeks, but my NJ state return has been stuck on "processing" for over a month now. As someone who's also relatively new to the US tax system (been here about 4 years), this whole federal vs state processing speed difference is completely baffling to me. In my home country, all tax matters were handled by one central agency, so this fragmented system where each state operates independently is still confusing. The NJ Division of Taxation website is absolutely useless - it's like they designed it to tell you as little as possible. I've been refreshing that page daily hoping for some miracle update, but it's been the same generic "processing" status for weeks. It's especially frustrating when you're counting on that refund for expenses and you have no idea if it'll come next week or next month. At least knowing others are experiencing the same delays makes me feel less like I did something wrong with my filing!

I'm dealing with the exact same issue! Filed my NJ return on 01/30 and got my federal refund in about 10 days, but my state return is still stuck in processing purgatory. As someone who's been in the US for about 2 years, I'm still wrapping my head around how the federal government can be so efficient while individual states seem to be operating with systems from the dark ages. What's really frustrating is that there's no way to get any meaningful information - the NJ website just says "processing" like it's some kind of magical incantation that's supposed to make us feel better. I've been checking religiously every day hoping for some sign of life, but it's like watching grass grow in winter. The financial stress of not knowing when (or if) that refund is coming is real, especially when you're still getting established in a new country. At least seeing all these comments makes me realize it's not something I did wrong - it's just NJ being NJ!

Slighy off-topic but don't forget capital gains reporting for your crypto! Even if T1135 doesn't apply, you still need to track every single transaction for calculating capital gains/losses. CRA expects you to report: - Fair market value of crypto at time of purchase - Fair market value when sold/traded - Calculate gain/loss on each transaction - Apply 50% inclusion rate for capital gains I use Koinly to track all this stuff and it saves me tons of headaches at tax time.

Great question and excellent discussion here! I just want to reinforce what others have said about the T1135 requirements for crypto. The key distinction is WHERE your crypto is held, not what type of asset it is. Since your hardware wallet is physically located in Canada (in your home safe), the Bitcoin stored on it is considered Canadian property for tax purposes, regardless of the fact that Bitcoin itself is decentralized and not tied to any specific country. The $250K+ threshold for T1135 only applies to "specified foreign property" - and crypto on a hardware wallet in Canada doesn't qualify as foreign property. You're absolutely right to be cautious about CRA compliance, but in your situation, T1135 filing isn't required. However, do keep detailed records of your transactions and holdings as others have mentioned. The crypto tax landscape is still evolving, and good documentation will protect you if rules change or if you're ever audited. Also remember that while T1135 may not apply, you'll still need to report any capital gains when you eventually sell or trade your Bitcoin. Stay compliant and keep that hardware wallet secure!

You might consider implementing a quarterly dividend strategy alongside a reasonable base salary. This is what I do - I pay myself a consistent reasonable base that covers my actual work (based on market rates for my position), then distribute profits as needed through distributions. Remember that while S-Corp distributions aren't subject to self-employment tax, they ARE subject to income tax. And the IRS is very clear that you can't take distributions without a reasonable salary first.

The uncertainty you're facing is totally understandable - that's a massive potential revenue jump! Here's what I'd recommend based on going through something similar: Start with a conservative approach for Q1. Set your salary based on a blend of last year's performance plus modest growth expectations - maybe bump from $65k to around $75-80k to start. This keeps your fixed commitment manageable while acknowledging some growth. Then implement quarterly reviews. As you hit Q2 and Q3, if the revenue is materializing as projected, you can either: 1. Increase your base salary mid-year (requires payroll adjustments) 2. Pay yourself W-2 bonuses quarterly to catch up 3. Take the excess as distributions (though remember you need that reasonable salary first) The IRS doesn't expect you to predict the future perfectly, but they do expect you to make reasonable adjustments as circumstances change. Document everything - why you set the initial salary, what factors you considered for increases, and how you determined what's "reasonable" for your role and industry. Most importantly, focus on what you'd need to pay someone else to do your job, not on percentages of profit. Your duties might not change much even if revenue quadruples, so your salary shouldn't necessarily scale directly with profits.

Something else to consider - if you determine you're a resident alien for 2024, you'll need to report your WORLDWIDE income on your US tax return, not just US-source income. This is a big difference from the non-resident 1040-NR where you only report US income. Did you have any income from sources outside the US during 2024? Like investments, rental property, foreign bank interest, etc.? If so, that needs to be reported on your 1040. You might also need to file FBAR forms if you had foreign bank accounts with balances over $10,000.

I went through almost the exact same situation two years ago! Your substantial presence test calculation looks spot on. Since you were exempt as an F-1 student for 2019-2023, 2024 was indeed your first year counting days, and with 335 days you definitely crossed the 183-day threshold. One thing I'd add to what others have mentioned - make sure you keep really good records of your departure date and any documentation showing you've established residence elsewhere. The IRS sometimes questions these transitions, especially for people who were students for several years. Also, since you're now filing as a resident alien, you might be eligible for some tax benefits you couldn't claim as a non-resident - like the standard deduction and certain credits. It's not all bad news! Just make sure you're thorough about reporting worldwide income as others have mentioned.

One important thing nobody's mentioned - the IRS doesn't actually receive details about how 529 withdrawals were spent! They just get notified that a withdrawal happened. It's up to you to track and allocate qualified expenses properly. As long as you have sufficient qualified education expenses to cover both your tax-free scholarship amount and the 529 withdrawal, you'll be fine. Just be ready to prove it if asked. I've been through an audit specifically on education expenses and having well-organized receipts for everything made it go smoothly.

This is exactly the kind of complex situation that trips up so many students and parents! A few additional points to consider: First, regarding the dependent status question - even if your mom can claim you as a dependent (which depends on the support test, not just the 1099-Q), you might want to run the numbers both ways. Sometimes the family saves more money overall if the student files independently and claims their own education credits, especially given your mom's income level. Second, for the 529 withdrawal timing issue you mentioned - the IRS generally allows reasonable allocation across academic periods. Since you're graduating in spring 2025, you could potentially allocate some expenses to the 2024-2025 academic year that spans across two tax years. Just make sure your total qualified expenses don't exceed what's realistic for your situation. One thing that might help: create a detailed spreadsheet showing all your qualified expenses by semester/academic period, including tuition, required fees, books, supplies, and room/board up to the school's published amounts. This will help you see exactly how much scholarship money and 529 funds you can allocate to each period while staying within the limits. Also, keep copies of your lease agreement, utility bills, and any other housing-related expenses as documentation. The key is being able to show the IRS that your allocations are reasonable and well-documented if you're ever questioned.