This is definitely the company trying to avoid registering in multiple states! My old job tried to pull this same thing. They don't want to deal with the paperwork and maybe additional business taxes that come with having nexus in multiple states. You should know that some states are actually suing companies for doing this! They're losing out on tax revenue when companies pretend their remote workers don't exist.

This is a frustrating situation that unfortunately many remote workers are dealing with. Your instincts are correct - you should be paying income tax to the state where you physically work and reside, not where your employer's headquarters happens to be located. The company is likely trying to avoid the administrative hassle and costs of registering for payroll taxes in your state. When they have an employee working in a state, they typically need to register there, withhold that state's income taxes, and potentially pay other business taxes too. Here's what I'd recommend: First, document everything in writing with your HR department. Explain that state income taxes should be based on where work is physically performed. If they refuse to budge, you'll probably need to go the dual-filing route that others have mentioned - let them withhold for the wrong state temporarily, then file as a nonresident there to get your refund while filing properly in your home state. Keep detailed records of where you work (utility bills, internet bills, etc.) as proof of your work location. This protects you if either state ever questions your filings. The good news is this situation is becoming common enough that most tax authorities understand it, even if some employers are still trying to avoid their obligations.

Does anyone know if you need to file for a FICA refund if you're filing your annual tax return anyway? Couldn't you just claim these excess deductions on your 1040NR?

I just went through this exact same situation as an F1 STEM OPT student! One thing I'd add to the great advice already given is to make sure you keep detailed records of everything. I created a spreadsheet tracking each pay period where FICA was incorrectly withheld, along with the specific amounts for Social Security and Medicare taxes. Also, don't let your employer off the hook completely. Even though they're being uncooperative about providing documentation, they are still required by law to correct their records and stop future withholding. You might want to escalate within HR or contact their payroll department directly - sometimes different departments are more helpful. One more tip: when you file Form 843, include a cover letter clearly explaining your situation. I wrote a simple one-page letter stating I was an F1 student on STEM OPT, exempt from FICA taxes, and that my employer had incorrectly withheld these taxes. I attached copies of my I-20, EAD card, and pay stubs showing the withholding. This seemed to help the IRS process my claim more efficiently. Good luck with your refund - $4,200 is definitely worth fighting for!

Your hospital sounds just like mine! The CEO makes millions while nurses get 8 days PTO total and have to fight for every raise. I looked at our 990s and our CEO got a $2.4M "retention bonus" the same year they froze our retirement contributions!

As someone who works in non-profit financial oversight, I want to add that there are actually whistleblower protections for employees who raise concerns about excessive executive compensation. The IRS has specific procedures for reporting potential "excess benefit transactions" at non-profits. If you genuinely believe your CEO's compensation violates the intermediate sanctions rules (which require compensation to be reasonable and properly approved), you can file Form 13909 to report suspected violations. The IRS takes these seriously, especially when there's a pattern of excessive compensation combined with poor employee benefits. However, I'd recommend first trying to work through your organization's governance structure - attending board meetings during public comment periods, or raising concerns through your employee representatives if you have them. Document everything and keep copies of those 990 forms. Sometimes just asking pointed questions about the compensation approval process can prompt boards to be more careful about their oversight responsibilities.

Great question! Yes, you can convert your SEP IRA to a Roth IRA, but there are some important considerations beyond what others have mentioned. Since you had such a strong year ($70k contribution), you might actually be in a unique position to take advantage of this. One strategy to consider: if your income is typically lower in future years, you could potentially spread the conversion over 2-3 years to stay in lower tax brackets. However, if this was an unusually good year and you expect lower income going forward, converting more now while you're already in a higher bracket might make sense. Also, don't forget about the 5-year rule for Roth conversions - each conversion has its own 5-year clock for penalty-free withdrawals of the converted principal (though this may not matter much if this is truly for retirement). Given the complexity with the pro-rata rule and potential tax implications, you might want to model a few different scenarios - converting the full amount this year, spreading it over 3-4 years, or waiting for a lower income year. The "right" answer really depends on your specific tax situation and income projections.

Another important consideration that hasn't been mentioned yet is the impact on your Medicare premiums if you're approaching age 65. Large Roth conversions can significantly increase your Modified Adjusted Gross Income (MAGI), which is what Medicare uses to determine your Part B and Part D premiums through the Income-Related Monthly Adjustment Amount (IRMAA). For 2024, IRMAA kicks in at $103,000 for single filers, and the surcharges can add hundreds of dollars per month to your Medicare premiums. The surcharges are based on your income from 2 years prior, so a large conversion in 2024 would affect your 2026 Medicare premiums. If you're currently under 63, this might not be an immediate concern, but it's worth factoring into your long-term conversion strategy. You might want to complete larger conversions while you're younger and then switch to smaller amounts as you approach Medicare eligibility. This is yet another reason why spreading the $70k conversion over multiple years could be beneficial - it helps you avoid not just higher income tax brackets, but also potential future Medicare premium increases.

I'm so sorry for your loss. Losing a family member is never easy, and it's thoughtful of you to want to share this with your cousin during her difficult time. From a practical banking perspective, I'd strongly recommend depositing the full cashier's check into your account first, then writing a separate check to your cousin. Banks are extremely cautious with third-party endorsements on cashier's checks, especially for large amounts like this. Many won't accept them at all, and those that do often require both parties present with multiple forms of ID. One thing I haven't seen mentioned yet is that you should also consider the emotional/family dynamics here. Having clear documentation that this is a gift (not a loan) protects both of you and prevents any potential family misunderstandings down the road. A simple written acknowledgment from your cousin that she's receiving this as a gift would be wise. Also, since you're dealing with a significant amount, you might want to consult with a tax professional or estate attorney. They can ensure you're handling both the gift tax reporting and any potential state-specific requirements correctly. The peace of mind is worth the consultation fee when dealing with amounts this large.

I'm sorry for your loss as well. This is such a generous gesture toward your cousin during a difficult time. One practical consideration that might help with your decision: if you're planning to give her the money anyway, you could potentially have the insurance company issue two separate cashier's checks upfront - one for $39,000 made out to your cousin, and one for $39,000 made out to you. Many insurance companies will accommodate this request from beneficiaries, especially when explained as helping family members. This approach would eliminate the banking complications entirely and create the cleanest paper trail. You'd still need to file Form 709 for the gift tax reporting since you're the beneficiary making the gift, but it removes all the endorsement and deposit concerns. If the insurance company won't split the payment, then definitely go with the deposit-first approach everyone else has recommended. Just be prepared for potential holds on large check deposits - some banks hold cashier's checks for 1-2 business days even though they're supposed to be guaranteed funds. Also, keep copies of everything - the insurance payout documentation, your deposit records, and the check you write to your cousin. This documentation trail will be invaluable for both gift tax filing and any future questions that might arise.