This thread has been incredibly comprehensive and helpful! I'm also on F-1 status (year 4) and have been researching CD options. One additional resource I'd recommend is checking if your home country has a tax treaty with the US that might affect your CD interest taxation. For example, I'm from Germany, and under the US-Germany tax treaty, there are specific provisions for interest income that can sometimes provide additional benefits beyond the standard portfolio interest exemption. The treaty might affect whether you owe taxes in your home country on US-source interest, or provide additional exemptions. You can find information about tax treaties on the IRS website (Publication 901 covers US tax treaties), but it can be pretty technical. If your country has a tax treaty with the US, it's worth understanding how it might impact your overall tax situation, especially as you get closer to potentially transitioning to resident alien status. Also, @Nora Brooks, since you're specifically looking at PNC Bank, I'd recommend calling their international banking department directly rather than going through a regular branch. Larger banks often have specialized teams that handle non-resident accounts, and they'll be much more familiar with the W-8BEN process and 1042-S reporting requirements. This could save you the headaches others have mentioned about receiving incorrect tax forms. Good luck with your CD investment - sounds like you're well-prepared now thanks to all the great advice in this thread!

As someone who just went through this exact situation last year, I can confirm most of what's been shared here is accurate! A few additional tips from my experience: **Bank Selection**: Most major banks (Chase, Bank of America, Wells Fargo, PNC) do have international banking departments or specialists, but the quality varies significantly. I found that banks near major universities tend to be much better trained on F-1 student accounts. Credit unions can be great for rates, but as others mentioned, their international tax knowledge is hit-or-miss. **Tax Treaty Research**: I'm from Canada and initially tried to navigate the US-Canada tax treaty provisions myself using IRS Publication 901. Big mistake - it's incredibly technical! I ended up consulting with a tax professional who specializes in international students, and they found treaty benefits I would have completely missed. The consultation fee ($200) was worth it and saved me much more in taxes. **Timing Tip**: If you're planning to open your CD soon, keep in mind that banks typically generate tax forms in January. So if you open a CD in late 2024, you'll receive your first 1042-S in early 2025 for any interest earned during 2024. This can be helpful for planning your first tax filing experience with CD interest. **Documentation**: In addition to keeping copies of your W-8BEN, I'd also recommend taking screenshots of your online banking showing your non-resident status (if the bank's website displays this). It's extra backup documentation that can be helpful if issues arise. The advice about starting with a shorter-term CD is brilliant - wish I had thought of that! Good luck with your investment, @Nora Brooks!

Something else to consider is the recapture of depreciation if this was ever used as a rental property by any of the three owners. Even if the elderly mother lived there as her primary residence, if the adult children ever claimed depreciation on their ownership shares (maybe they treated it as rental income from mom), that depreciation has to be recaptured in the year of sale and can't be spread out using the installment method. This could create a significant tax hit in year one even with seller financing. The recapture is taxed at a maximum rate of 25%, which is often higher than their regular capital gains rate. Make sure they check with a tax professional about any depreciation that might have been claimed over the years. Also, since you mentioned they're family connections, be extra careful about the interest rate you agree on. The IRS requires seller financing to use at least the Applicable Federal Rate (AFR) for the loan term, or they'll impute interest income to the sellers anyway. For December 2024, the AFR for mid-term loans (3-9 years) is around 4.69%. Going below this rate could create phantom taxable income for them.

Based on all the discussion here, it sounds like seller financing could definitely work in your favor for negotiations! The installment sale method will help the three owners spread their capital gains tax over time, which is particularly valuable since they're retired and need to watch Medicare premium thresholds. Here's what I'd focus on in your negotiations: First, get clarity on whether any depreciation was ever claimed on the property - this will affect their year-one tax liability regardless of the installment method. Second, run the numbers on how much they could save in Medicare premiums by keeping their income below the IRMAA thresholds through installment reporting. You mentioned the mother lived there 30+ years, so she's likely got a huge potential capital gains exclusion ($250k) that makes this even more attractive for her. The adult children don't get that benefit, so the installment method is probably more valuable to them. I'd suggest presenting this as a win-win: they get tax benefits through installment reporting plus higher returns than CDs/savings accounts, while you get below-market interest rates. Just make sure your attorney structures everything properly with AFR-compliant rates and solid documentation. Given that these are family connections, the IRS will scrutinize the terms more carefully to ensure it's a legitimate business transaction.

I'm glad you're being cautious about this - your instincts are absolutely right. What your friends are suggesting is indeed tax fraud, and your mom is correct about the potential consequences. The IRS has sophisticated computer systems that automatically cross-reference Social Security numbers across all tax returns. When the same SSN appears as both a dependent on one return and as an independent filer on another, it triggers an immediate red flag that will result in both returns being reviewed and likely audited. Here's the reality of your situation: if your parents are providing housing (even if you don't pay rent, this counts as support at fair market rental value) plus helping with tuition, they're almost certainly providing more than 50% of your total support. Even a modest room rental would be $600-800+ per month in most areas, which adds up to $7,200-9,600 annually - often more than many part-time student jobs provide. Instead of risking penalties, interest, and potential criminal charges, focus on legitimate solutions for your financial aid concerns. Contact your school's financial aid office immediately and ask about dependency override appeals or special circumstances reviews. Many students successfully receive additional aid through these programs when their FAFSA doesn't accurately reflect their actual financial situation. Remember, you should still file your own tax return as a dependent (checking the box that someone can claim you) to recover any withheld taxes and claim eligible education credits. You're not losing money by filing correctly - you're protecting yourself from serious legal and financial consequences.

Your mom is absolutely right to warn you about this being tax fraud. As someone who works in tax preparation, I see this situation come up frequently with college students, and it always ends badly when people try to claim independence while their parents legitimately claim them as dependents. The IRS has automated matching systems that will immediately flag your Social Security number appearing on two returns with conflicting dependency status. This isn't something that might get caught - it WILL get caught, usually within weeks of filing. From what you've described, your parents are almost certainly providing more than 50% of your support. The fair rental value of living at home alone could easily be $8,000-12,000+ annually, depending on your area. Add tuition assistance and other support, and you're nowhere near providing more than half your own support. Here's what you should do instead: 1. File your own tax return as a dependent (checking the box that someone can claim you) to get back any withheld taxes 2. Contact your school's financial aid office immediately about a dependency override appeal - explain how your parents' ability to claim you doesn't reflect their actual ability to contribute to your education costs 3. Look into work-study programs, scholarships, and other legitimate aid options I've helped students navigate dependency override appeals, and schools are often more flexible than people expect when you can document your circumstances properly. This is the legitimate path that won't put you at risk of penalties, interest, and potential criminal charges. Don't let short-term financial pressure push you into making a decision that could have serious long-term consequences.

I'm sorry for your loss, Emma. Dealing with inherited IRAs can be overwhelming during an already difficult time. The good news is that you likely don't need to worry about determining your father's basis at all. For traditional IRAs, "basis" refers to after-tax contributions that were made to the account. However, most people make only pre-tax (deductible) contributions to traditional IRAs, which means their basis would be zero. In this case, the entire inherited amount is taxable to you as ordinary income. Since you mentioned you received a 1099-R form for your 2022 distribution, check if it shows the full amount as taxable income. If so, that confirms you don't need to track down your father's basis information - just report the distribution as ordinary income on your tax return. The silver lining is that inherited IRA distributions aren't subject to the 10% early withdrawal penalty that normally applies to IRA distributions before age 59½. Also, since you took the full distribution in 2022, you've satisfied all requirements and don't have any ongoing obligations related to this inherited IRA. If you're still concerned about whether your father made any non-deductible contributions, you could contact the IRA custodian to ask if they have records of such contributions, but based on your 1099-R showing full taxability, this likely isn't necessary.

I'm glad to see this thread has been so helpful for you, Emma! Just wanted to add one more practical tip based on my experience helping clients with inherited IRAs: make sure to keep a copy of your father's death certificate along with your 1099-R form when you file your taxes. While the 1099-R should have the correct distribution code indicating it's from an inherited IRA, having the death certificate provides additional documentation that this was indeed an inherited distribution (not subject to early withdrawal penalties) if the IRS ever has questions. Also, since you took the full distribution in 2022, you might want to consider whether you need to make estimated tax payments for 2023 if this distribution significantly increased your tax liability last year. The additional taxable income could affect your withholding requirements going forward. It sounds like you've got everything figured out now, but don't hesitate to consult with a tax professional if you have any concerns about how this affects your overall tax situation. Sometimes the peace of mind is worth the consultation fee, especially when dealing with larger distributions.

Has anyone here actually had success writing off home office expenses as a 1099 therapist? My accountant is giving me conflicting info about what's allowed since I only do paperwork at home but see clients at various facilities.

Great discussion everyone! As someone who made the transition from W-2 to 1099 as a physical therapist two years ago, I can confirm that the 25-30% increase mentioned earlier is absolutely necessary - and sometimes not even enough. One thing I wish I had considered more carefully is the impact on retirement savings. As a W-2 employee, even without employer matching, I could still contribute to a simple IRA. As 1099, I had to set up a SEP-IRA, which has different contribution limits and rules. The administrative burden of managing your own retirement planning is real. Also, don't forget about disability insurance! Most W-2 jobs provide some level of short-term disability coverage. As 1099, if you get injured and can't work, you have zero income. I ended up purchasing my own disability policy, which is another $200/month expense. The flexibility of 1099 work is amazing - I can set my own schedule and choose my clients. But make sure you're accounting for ALL the hidden costs, not just the obvious ones like self-employment taxes. My break-even point ended up being 33% higher than my previous W-2 rate.