I thought you can't day trade in an IRA because of the limited deposits each year and trading restrictions?

You're right that there are limitations. IRAs have annual contribution limits ($7,000 for 2025 if you're under 50), and you can't use margin or do certain types of options trading. But you absolutely can do active trading within those limitations. Just no pattern day trading using margin, which requires $25,000 minimum equity in regular accounts. Some brokerages also have additional restrictions on IRAs, but the tax benefits can be huge for the trading you can do in there.

Thanks for the suggestion. I actually started doing this after I got confused about the tax implications. Do you happen to have a template you could share? I'm tracking basic info like buy/sell prices and dates, but wonder if I'm missing anything important for tax purposes.

This happened to me too! I was freaking out because the status was stuck on "return received" for weeks, then randomly checked my bank account and boom - full refund was there. The IRS tracking system can definitely lag behind the actual deposit.

Exactly! The IRS systems don't always communicate with each other in real-time. The processing department might release your refund while the status update for the tracking tool is queued in a different system. Another thing to check is whether you have any past-due federal or state debts. Things like unpaid student loans, child support, or state taxes can result in your refund being offset (reduced) or delayed. The Where's My Refund tool doesn't always show this information clearly.

I find the app actually updates faster than the website. Got my status on the app a full day before it showed up on the website version. Worth trying both!

Did they help with state taxes too? I heard nonresident aliens sometimes have to file state returns differently than the federal.

Yes, they helped with both federal and state returns. You're right that state filing can be different - some states follow the federal definitions of residency while others have their own rules. In my case, I needed to file as a nonresident for federal purposes but was considered a resident for state tax purposes since I lived there the entire year. The VITA volunteers were trained on both federal and state requirements for international students. Just be aware that these programs usually have income limits (I think around $58,000), but most students fall under that threshold anyway.

Oh no, did you have to file an amended return? How did you fix the situation?

Thank you for mentioning this. If I end up owing the full amount, a payment plan might be my only option. Do you know if they run a credit check or anything for these payment plans?

They don't run a credit check for standard payment plans. The IRS offers short-term plans (paying within 180 days) with no setup fee, or long-term plans with a small setup fee. For amounts under $10,000, it's usually automatic approval as long as you've filed all required tax returns. The current interest rate is around 7% annually, plus a small failure-to-pay penalty of 0.25% per month while you're on the plan. Still way better than ignoring it and getting hit with the full 0.5% monthly penalty plus potential collection actions.

This is really important advice. My parents almost fell for a scam last year that looked EXACTLY like a real IRS letter. The only thing that tipped me off was they wanted payment through Zelle.

The letter does have CP2000 in the corner and it doesn't ask for any weird payment methods, so I think it's legitimate. But thank you for the warning - I've heard about those scams too and they're getting super sophisticated.

Oh no, I didn't realize I'd owe self-employment tax too! How much should I expect to pay roughly on $4,800? I haven't saved anything specifically for taxes since this is the first I'm hearing about this.

For $4,800 in 1099 income, you'll owe approximately $735 in self-employment tax alone (15.3% of your net earnings). Then you'll also owe your regular income tax on top of that, which depends on your tax bracket and other income you might have. If this is your only income for the year, some of it might be offset by your standard deduction, but you'll definitely still owe the self-employment portion. There's a small deduction for half of your self-employment tax, but you'll still need to prepare for a tax bill. Consider making an estimated tax payment if possible to avoid underpayment penalties.

I used FreeTaxUSA last year for a very similar situation (research stipend on 1099-MISC). Federal filing WITH Schedule C was completely free. State filing was $14.99, but that was it - no surprise upgrades or "premium" features needed for the 1099 income. Their interface for Schedule C was actually pretty straightforward too.