Your concern about willful vs. non-willful violations is really important! Generally, if you genuinely didn't know about FBAR requirements for precious metals arrangements, that would typically be considered non-willful - especially since the rules around custodial precious metals storage aren't well-publicized and many people assume physical assets stored overseas don't trigger financial account reporting. The IRS looks at factors like whether you made efforts to comply with tax laws, sought professional advice, or had reason to know about the requirements. Someone who's been filing their regular tax returns and simply didn't realize their gold storage arrangement created a reportable account would likely qualify for non-willful treatment. However, once you become aware of potential reporting obligations (like through this discussion), continuing to not file when required could shift toward willful non-compliance. That's why it's so important to get clarity on your situation quickly. If you discover you've missed prior filings, the IRS Streamlined Filing Compliance Procedures offer significant penalty relief for non-willful violations. The penalties under this program are much more reasonable than the harsh willful violation penalties (typically 5% of the highest account balance instead of up to 50%). Definitely review your custodial agreement this weekend as you planned, and consider getting professional guidance before the next filing deadline. The investment in proper advice is minimal compared to your potential exposure on those assets.

I've been following this discussion closely as someone who also has precious metals stored internationally, and the consensus here seems clear - the structure of your custodial arrangement is absolutely critical for determining reporting obligations. Based on what you've described with your Swiss custodian holding $175K in gold, I'd lean heavily toward this being a reportable financial account for FBAR purposes. Most reputable international precious metals storage providers offer account-like services (statements, transaction capabilities, etc.) that cross the IRS threshold from simple storage to financial account. What strikes me about this thread is how many people discovered they had unreported obligations after years of thinking their precious metals arrangements were just "storage." The good news is that the IRS Streamlined Filing Compliance Procedures mentioned by several commenters provide a reasonable path forward for non-willful violations. Given the severe penalty exposure on $175K (potentially up to 50% for willful violations), this is definitely not a situation to handle through internet research alone. The few hundred dollars for a consultation with an international tax specialist is nothing compared to your potential penalty exposure. I'd recommend acting quickly - review your custodial agreement for the key features everyone mentioned (transaction capabilities, statements, cash holding), and if you find them, get professional guidance before the next filing deadline. Better to address this proactively than discover compliance issues during an audit.

This entire thread has been incredibly enlightening! As someone who's been doing my own taxes for years but never really understood the mechanics behind credit ordering, I'm honestly shocked at how much I've been leaving to chance. I always just plugged numbers into tax software and hoped for the best, but now I realize there's actual strategy involved. The fact that the IRS designed the system to maximize our benefit by applying non-refundable credits first is something I never would have guessed - I always assumed they'd structure things to minimize refunds! One question I still have: does this ordering apply the same way for businesses? I have a small side business and claim some business credits along with my personal credits. Do business credits get applied before personal ones, or do they all just get lumped together in the non-refundable vs refundable categories? Either way, this thread has definitely convinced me to pay more attention to tax planning rather than just tax filing. Thanks everyone for sharing your knowledge!

This has been such an educational thread! I work in tax preparation and wanted to add one more helpful resource for anyone still struggling with credit calculations. The IRS has a really useful tool called the "Interactive Tax Assistant" on their website that can help you determine which credits you qualify for and how they might interact. It's not as detailed as some of the third-party tools mentioned here, but it's free and comes straight from the source. For the original question about the $5,300 tax liability with the Saver's Credit and Child Tax Credit - everyone here is absolutely right about the ordering. Your $500 non-refundable Saver's Credit gets applied first (bringing you down to $4,800), then your $5,000 Child Tax Credit zeros out the remaining liability and gives you a $200 refund. One additional tip: make sure you're calculating the refundable portion of the Child Tax Credit correctly. It's the smaller of your remaining tax liability OR $1,800 per qualifying child. In your case with two kids, you have up to $3,600 in potential refundable credit available, so you're well within that limit for your $200 refund.

FYI the financial institution already reported this to the IRS. The computer systems will automatically flag your return if the numbers don't match. Don't risk an audit over $187!

I went through this exact same situation last year with a small 1099-INT for about $150. I was tempted to skip it too, but I'm glad I didn't. The consensus here is absolutely correct - you MUST report all interest income regardless of the amount. There's no minimum threshold for reporting interest income on your tax return. What really convinced me was realizing that the IRS already has a copy of your 1099-INT form. The financial institution is required to send them a copy of everything they send to you. Their computer systems automatically cross-reference what you report against what they have on file. If there's a mismatch, you'll likely get a notice asking about the discrepancy. For $187, you're probably looking at owing maybe $30-50 in additional tax depending on your bracket, but the penalties and interest for not reporting it initially could add up to more than that. Plus, having to deal with IRS correspondence is just not worth the headache. Just report it and move on - it really is straightforward once you know where it goes on your return.

I filed through Liberty Tax on February 28th and chose the Deep Blue Card after reading mixed reviews about their direct deposit timing. My return was accepted by the IRS on March 3rd, and I'm currently in the "refund approved" stage according to Where's My Refund. Still waiting for it to hit the card though. One thing I noticed is that Liberty's online portal doesn't show much detail about the card disbursement process - it just says "processing" once the IRS approves the refund. Has anyone found a way to track the intermediate step between IRS approval and the funds actually loading onto the Deep Blue Card? I'm hoping to see movement by Friday since it'll be a full week since approval. Thanks for starting this thread - it's helpful to have a central place to compare timelines!

I've been following this thread closely as I'm also waiting on my Deep Blue Card refund. Filed through Liberty on March 1st and got accepted March 5th. Still showing "refund approved" on WMR but nothing on the card yet. One tip I learned from a Liberty Tax office manager: they recommend downloading the Deep Blue Card mobile app and enabling push notifications because sometimes the deposit shows up before any email notifications are sent. Also, for anyone experiencing long hold times with customer service, I found that calling right when they open (8 AM EST) significantly reduced my wait time. Has anyone noticed if there's a difference in processing speed between simple returns versus those with dependents or additional forms? My return was pretty straightforward (just W-2 and standard deduction) so I'm hoping that might speed things up a bit.

Just wanted to add another perspective here - make sure you're also looking at state tax implications! Some states treat 1099-MISC income differently than the federal government does. In my experience helping students with similar situations, the state return sometimes requires the income to be reported in a different section than what you'd expect based on the federal filing. This is especially important if your son goes to school in a different state than where you live or where the internship was located. Also, since his total income was under $12,950 (the standard deduction for single filers in 2024), he likely won't owe any federal income tax at all once you get this sorted out correctly. The key is just making sure that 1099-MISC Box 3 income gets reported as "Other Income" rather than self-employment income subject to Schedule C.

For state-specific guidance on 1099-MISC reporting, I'd recommend checking the state tax agency websites directly. Most states have detailed guides about how they treat different types of income, and many have specific sections for students or internship income. You can also look up "nonresident state tax filing requirements" if the internship was in a different state. Some states have reciprocity agreements that might simplify things, while others require separate filings. The good news is that most states follow federal guidelines for distinguishing between self-employment income and other income, so once you get the federal return correct, the state return usually follows the same logic. If you're still having trouble navigating the state rules, consider reaching out to the state tax agency directly - they're often more accessible than the IRS and can give you specific guidance about how your son's situation should be handled in that particular state.