Does anyone know if there's a penalty for submitting the W-8BEN late? I'm in a similar situation with Chase and just realized I never responded to their letter from 2 months ago...

For students on F-1 visas, this is actually a really common mixup! Banks often don't train their staff well on the different tax forms for international students vs other account holders. Since you mentioned you opened the account in mid-March and are on a student visa, you're most likely a non-resident alien for tax purposes (assuming you've been in the US for less than 5 years). This means the W-8BEN was probably the correct form, but there might have been an error in how it was filled out. The good news is that for such a small amount of interest, any withholding issues are minimal. I'd recommend calling BOA's international banking department directly - they're usually much more knowledgeable about these forms than regular branch staff. Ask them specifically what was wrong with your original W-8BEN submission and whether you need to provide additional documentation beyond the passport copy. Don't stress too much about the timing - while 30 days is preferred, banks deal with late submissions all the time, especially for international students who might not be familiar with US banking requirements.

One thing no one has mentioned yet - if you do claim your daughter as a dependent, you might qualify for the American Opportunity Credit (if she's in her first 4 years of post-secondary education) or the Lifetime Learning Credit (available for graduate school). This could save you up to $2,000-$2,500 on your taxes depending on which credit you qualify for and your income level. Since you paid those administrative fees, those would count as qualified education expenses. Keep all your receipts!

Based on what you've described, you should definitely claim your daughter as your dependent for 2024. Since she's 23, a full-time graduate student, has zero income, and you're providing all her support, she clearly meets all the IRS tests for qualifying child status. One important thing to keep in mind - make sure you have good records of all the expenses you paid for her this year. The $4,000 in administrative fees plus her living expenses should easily put you over the "more than half support" threshold, but it's good to have documentation just in case. Also, don't worry about what happened in previous tax years. Each year is completely independent when it comes to dependent status. The fact that she filed on her own last year when she was working has no bearing on this year's situation. Since she has no income this year, she won't need to file a return at all. You'll just claim her as your dependent and potentially qualify for education credits on those administrative fees you paid. It sounds like a straightforward situation once you understand the rules!

I had the exact same confusion last year! The way these tax software companies present "Schedule 3" makes it sound like some complicated advanced tax form, but it's really just a standard supplement form that millions of people need every year. Here's the key thing to understand: if you worked two jobs during 2024, you almost certainly had excess Social Security tax withheld (since each employer withholds Social Security tax up to the annual limit, but they don't know about your other job). That excess withholding gets reported on Schedule 3 as a credit you can claim back - it's actually money in your pocket! The good news is you have several free options. I ended up using the IRS Free File Fillable Forms and it worked perfectly fine for Schedule 3. Yes, it requires a bit more manual work than the hand-holding software, but the IRS instructions are actually pretty clear once you get started. Plus there are tons of YouTube tutorials that walk you through it step by step. Don't let TurboTax bully you into that $49 upgrade - Schedule 3 is totally doable on your own or with free alternatives!

I just want to echo what others have said - don't let the tax software companies scare you with "Schedule 3"! I'm a tax professional and I see this confusion all the time. The most common reason people need Schedule 3 is actually something GOOD for them - it's often because they're owed money back from excess Social Security withholding when they worked multiple jobs. The IRS limits total Social Security tax to $10,788 for 2024 (on income up to $168,600), but if you had two employers, each one withheld Social Security tax separately without knowing about the other job. Before paying TurboTax's upgrade fee, definitely check out the free alternatives people mentioned. The IRS Free File program is legitimate and works with forms like Schedule 3. You can also try FreeTaxUSA or even the IRS's own fillable forms if you're comfortable with a little DIY approach. The bottom line: Schedule 3 sounds scarier than it is, and you have options that won't cost you $49!

Another W-2 employee here. My accountant told me the only receipts worth keeping for most regular employees are: - Medical expenses (but only if they'll exceed 7.5% of your adjusted gross income) - Charitable donations (if you itemize) - Home office expenses (only if you're self-employed) - Education expenses for certain tax credits Unless you itemize deductions, which most people don't anymore with the higher standard deduction, it's basically pointless to keep most receipts. Tell your family they're working with outdated tax info!

Your dad means well, but he's working with outdated tax information! As others have mentioned, the 2017 Tax Cuts and Jobs Act really changed things for W-2 employees. Here's the bottom line: unless you're self-employed, drive for business purposes beyond your normal commute, or have a very specific situation, those gas receipts aren't helping you tax-wise. The standard deduction is now so high ($13,850 for single filers in 2023) that most people don't even itemize anymore. I'd suggest focusing your energy on what actually matters: maximizing your 401k contributions, HSA contributions if you have one, and keeping track of any legitimate charitable donations. Those are the things that will actually move the needle on your tax bill. Your time is valuable - don't spend it sorting through gas station receipts that won't benefit you. Maybe show your dad some of the resources others have shared here so you can both get on the same page with current tax law!

Has anyone considered the potential changes to step-up basis rules that have been proposed in recent years? I've been worried about how legislative changes might affect our family trust situation.

This thread has been incredibly helpful! I'm dealing with a similar situation where my grandmother set up an irrevocable grantor trust in 2016, and I've been the successor trustee since she passed last year. One thing I learned through this process that might be useful for others: make sure you have a clear understanding of whether your trust qualifies for the step-up in basis. Not all irrevocable trusts automatically get this benefit - it depends on specific provisions in the trust document and whether the grantor retained certain powers. In our case, the trust was structured so that my grandmother retained enough control (through substitution powers) that it remained a grantor trust for tax purposes, which meant we did get the step-up. But I've heard of other families where similar-sounding trusts didn't qualify because of subtle differences in how they were drafted. Definitely worth having a professional review the specific language rather than making assumptions based on general rules about irrevocable trusts.