As someone who's been in your exact situation for the past 4 years, I can completely understand your concern! I collect rent and utility payments from 2-3 roommates every month through various payment apps, and I was initially worried about the same tax implications. The good news is that these payments are definitively NOT taxable income. You're receiving reimbursements for expenses you paid on behalf of your roommates, not earning money. The IRS makes a clear distinction between income (money you earn) and reimbursements (money that repays you for costs you covered). Here's what I've learned works best to keep everything clean: **Documentation strategy**: I maintain a simple Google Sheet with our monthly expenses (rent, utilities, internet) broken down by person. I also save screenshots of payment confirmations and keep copies of our lease and utility bills. **Payment app best practices**: Always ensure your roommates categorize payments as "friends/family" or "personal" rather than "goods/services." Have them include clear memos like "April rent share" or "March utilities" to create an obvious paper trail. **Stay within reimbursement bounds**: As long as you're only collecting their actual share of expenses (not charging extra fees or markups), you're clearly in reimbursement territory. The new $600 reporting threshold everyone worries about only applies to business transactions marked as "goods/services" anyway. Your situation is a textbook example of legitimate expense sharing between roommates. Keep reasonable records for your peace of mind, but you definitely don't need to report these as income!

I completely understand your concern about this! I was in a very similar situation last year - collecting rent and utility payments from two roommates through Venmo and Cash App, with only my name on the lease. The constant stream of payments definitely made me nervous about potential tax implications. Here's what I learned after researching this extensively and consulting with a tax professional: these payments are absolutely NOT taxable income. When your roommates send you money for their share of rent and utilities, you're receiving reimbursements, not earning income. The IRS makes a clear distinction between money you earn (taxable) versus money that repays you for expenses you covered on someone else's behalf (not taxable). A few key points that should give you peace of mind: **You're not making profit**: Since you're only collecting their actual share of the bills without any markup or fees, this is clearly reimbursement territory. **The $600 reporting rule doesn't apply**: The new payment app reporting requirements only trigger for business transactions marked as "goods/services." Personal reimbursements between friends/roommates don't fall under this rule. **Simple documentation helps**: I keep a basic spreadsheet showing our monthly expenses and each person's share, plus save copies of the lease and utility bills. Having your roommates include notes like "March rent" in payment memos creates a clear paper trail too. **Use correct payment categories**: Make sure your roommates send money as "friends/family" or "personal" payments, not "goods/services." Your situation is completely normal and legitimate - you're just handling shared living expenses in the most practical way. Don't let tax anxiety stress you out over something that's perfectly fine!

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!

This has been an absolutely fantastic thread! As a newcomer to this community, I'm amazed by how comprehensive and helpful everyone's responses have been. I'm also on F-1 status (just finished my second year) and have been hesitant to open any investment accounts because the tax implications seemed so confusing. Reading through all these experiences has really clarified things for me. The key points I'm taking away are: 1. **Portfolio interest exemption** applies to CD interest for non-resident aliens 2. **Form W-8BEN** is crucial - get it right from the start and keep copies 3. **Expect 1042-S, not 1099-INT** - and be prepared to get corrections if the bank messes up 4. **State taxes vary** significantly and don't always follow federal rules 5. **Bank selection matters** - look for institutions experienced with international students The recommendations for services like taxr.ai and Claimyr are really interesting too. I had no idea these specialized tools existed for international student tax situations. The traditional tax software like TurboTax really doesn't handle our unique circumstances well. One question for the group: Has anyone had experience with online-only banks (like Marcus by Goldman Sachs, Ally Bank, etc.) for CDs as an F-1 student? They often have competitive rates, but I'm wondering if their customer service and tax document handling is reliable for non-resident aliens, or if it's better to stick with traditional banks that have physical branches and international departments. Thanks again to everyone for sharing such detailed experiences - this thread should definitely be bookmarked for future F-1 students facing the same decisions!

I completely understand your frustration with Surgent - you're definitely not alone in this experience! The practice-question-only approach is like trying to learn piano by only playing scales without understanding music theory. Here's what I wish someone had told me when I was in your exact situation: **Essential Study Materials:** - **Gleim EA Review** - Their textbooks are comprehensive and actually explain the "why" behind tax rules. Worth every penny. - **Passkey EA Review** - Great alternative with clear explanations and practical examples - **IRS Publication 17** (Your Federal Income Tax) - Use this as your reference bible - **Circular 230** - Essential for understanding EA practice requirements **The study approach that actually works:** 1. Start with understanding concepts through textbooks BEFORE doing practice questions 2. Read one chapter thoroughly, take notes, make sure you understand the underlying principles 3. Reference the corresponding IRS publications for official language 4. THEN practice questions to test your understanding 5. When you get questions wrong, go back to learn WHY, not just what the right answer is **Free IRS resources to supplement:** - Publication 334 (Tax Guide for Small Business) - Publication 535 (Business Expenses) - Publication 225 (Farmer's Tax Guide) The fact that you want to actually understand the tax code rather than just memorize answers tells me you're going to be an excellent EA. Don't let Surgent's limitations discourage you - there are much better resources out there that will give you the solid foundation you're looking for. You're asking all the right questions. Stick with it!

I feel your pain with Surgent! I went through the exact same experience and felt like I was going crazy trying to understand why I wasn't "getting it" from just practice questions. After reading through all these great recommendations, I wanted to share what finally worked for me. The key breakthrough was realizing that the EA exam isn't just testing memorization - it's testing your ability to apply tax principles to real-world situations. You can't do that without understanding the underlying concepts first. **My recommended study sequence:** 1. **Start with Gleim EA Review textbooks** - Yes, they're expensive, but they actually teach you the material systematically 2. **Use IRS Publication 17 as your reference guide** - Don't try to read it cover to cover, but use it to look up specific topics as you study 3. **Master one topic completely before moving to the next** - Read the textbook chapter, understand the concepts, then do a few practice questions to test comprehension **What changed everything for me:** Instead of asking "What's the right answer?" I started asking "What tax principle is being tested here?" Once you understand the principles, the specific applications become much clearer. The fact that you want to actually understand the tax code shows you have exactly the right mindset to become a great EA. Don't let Surgent's approach make you doubt yourself - you're not the problem, the study method is. Invest in proper textbooks that actually teach the material, and you'll be amazed at how much more confident you feel going into the exam. Stick with it - understanding the material properly is worth the extra time and investment!

Wait, I'm confused about something. If investment interest is deductible against investment income, where does the itemized vs standard deduction choice come into play? Isn't it a separate calculation?

Just wanted to add a practical tip for anyone dealing with this situation going forward: consider timing your margin trading activities around your deduction strategy if possible. If you know you'll be itemizing in a particular year (maybe because of high medical expenses, state taxes, or mortgage interest), that might be a better year to use margin more heavily since you'll actually be able to deduct the interest. Conversely, in years where you'll likely take the standard deduction, you might want to minimize margin use or pay it down early in the year. I learned this the hard way after accumulating significant margin interest in a standard deduction year. Now I try to coordinate my investment financing with my overall tax situation. It's not always practical since investment opportunities don't follow tax calendars, but it's worth considering as part of your broader financial planning.

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.