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dont even bother calling tbh. system automatically converts failed direct deposits to paper checks. just gotta wait it out
Same thing happened to me with Cash App last year! The rejected deposit bounced back to IRS within about 5 business days, then got my paper check exactly 3 weeks later. Make sure your mailing address is current on file with them - you can check/update it on the IRS website. The waiting sucks but at least you'll definitely get your money ๐ธ
Why is everyone making this so complicated? Just fill out the damn form, it takes 5 mins. Put "Article XI - Interest" in section 10 of the W8-BEN (that's the part about the treaty benefits for interest income between US-Canada). Sign it, date it, send it back to your bank. Problem solved.
Just to add some clarity on the substantial presence test since it's been mentioned - you can actually file Form 8840 (Closer Connection Exception Statement) if you meet the substantial presence test but still maintain closer ties to Canada. This allows you to be treated as a Canadian resident for tax purposes even if you're physically present in the US for more than 183 days under the formula. You'd need to show that your tax home, family, personal belongings, social/political ties, etc. are still primarily in Canada. This form is due by June 15th of the year following the tax year in question. Also, regarding the W8-BEN, make sure you check the box in Part II claiming treaty benefits and specify "Canada" as the country. The form is valid for 3 years from the date you sign it, so you won't need to keep refiling it every year. One last tip - keep copies of everything you submit to your bank. If there are any issues later with withholding, you'll need documentation to show you properly claimed treaty benefits.
This is really helpful! I didn't know about Form 8840 - that could be a game changer for people in situations like mine. Quick question though: if you file the 8840 to claim closer connection to Canada, does that affect your ability to eventually get a green card or permanent residency in the US? I'm wondering if there could be immigration consequences to formally declaring that your ties are primarily to Canada.
Hot tip if you're e-filing in Texas and have license issues: when I e-filed with H&R Block software, they had a clear option to skip the drivers license step completely. Just clicked "I don't have this information" and completed my filing with no problems. My return was accepted within 48 hours and refund came through in about 10 days. No issues whatsoever, and Texas definitely doesn't need state tax info since we don't have state income tax.
Does this work with TurboTax too? I can't find that option and its making me enter something in that field.
TurboTax hides it a bit more but the option is there. Look for a small text link that says something like "I can't provide this information" or "I don't have a state ID". It's usually below the main form fields, not a prominent button. If you absolutely can't find it, you can also enter your expired license info - the system mainly wants the ID number which hasn't changed. TurboTax might give you a warning but it won't stop your federal return from being processed.
This question comes up every year! I'm a tax preparer in Texas and can confirm - use your expired license for e-filing federal returns. The number is what matters, not the expiration date. But honestly, best practice is to keep your license current anyway. You'll need a valid one for so many other things, and the renewals can often be done online now.
Do you know if there's a grace period for using expired licenses? Mine expired in 2023 but I haven't renewed yet. Will that be a problem?
For federal tax purposes, there's no specific "grace period" - the IRS system is mainly using your license number for identity verification, not checking expiration dates. A license that expired in 2023 should work fine for e-filing your federal return. However, you should definitely prioritize getting it renewed soon. An expired license from 2023 could cause issues with other government services, banking, employment verification, and even TSA if you need to fly. Most states allow online renewal even for licenses that have been expired for a while, though you might face late fees.
Quick tip from someone who trades futures regularly: futures contracts are NOT reported on Form 8949! They're Section 1256 contracts that go on Form 6781. They get special 60/40 tax treatment (60% long-term capital gains, 40% short-term).
This is correct. I'm an active trader and the distinction matters a lot for your tax bill. Section 1256 contracts (futures, foreign currency contracts, etc.) are marked-to-market at year end and get that special 60/40 split treatment. This is usually more favorable than the short-term capital gains rates that apply to most securities trading if held less than a year.
I went through this exact same confusion last year with my futures trading losses! Everyone here is absolutely right - futures are Section 1256 contracts that belong on Form 6781, not Form 8949. This is a huge distinction that can significantly impact your tax liability. The 60/40 treatment for Section 1256 contracts means 60% of your gains/losses are treated as long-term capital gains (taxed at lower rates) and 40% as short-term, regardless of how long you actually held the positions. This is usually much more favorable than regular securities trading. If TurboTax directed you to Form 8949, you likely entered your futures trading in the wrong section. Look for a section specifically for "Section 1256 contracts" or "mark-to-market" trading when you go back to review. Your 1099-B from futures trading should have different codes than regular stock trading - check if it shows code "A" or other Section 1256 indicators. You'll want to correct this before mailing anything to the IRS, as reporting futures on Form 8949 instead of Form 6781 could trigger unnecessary scrutiny or require amendments later.
CosmicVoyager
Its actually not that bad if you fill it out right. Just triple check everything before sending it in
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Ravi Kapoor
โขcap ๐งข took me 6 months even with perfect paperwork
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Sunny Wang
I'm going through the exact same thing right now! Filed my 8862 about 6 weeks ago and still waiting. The most frustrating part is how the IRS website just says "processing" with no real timeline. Have you tried calling their customer service line? I've been on hold for literally hours multiple times with no luck getting through to anyone who can give me actual answers.
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Justin Chang
โขUgh yes the customer service is absolutely useless! I've been on hold for 3+ hours multiple times just to get disconnected. Super frustrating when you're already dealing with months of delays. At this point I'm just hoping it processes eventually ๐ค
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