Thanks for all the helpful responses everyone! This community is great for getting real answers. I just wanted to add that for Alabama specifically, you'll also need to report this on your state return since Alabama has a state income tax. The good news is that most tax software will automatically carry over the federal information to your state return once you enter it. For anyone else dealing with multiple bank bonuses, I'd recommend keeping a simple spreadsheet throughout the year with the bank name, bonus amount, and date received. Makes tax time so much easier when you have everything organized ahead of time.

Great question about tracking everything! I include referral bonuses in the same spreadsheet since they're all taxable income that needs to be reported. I actually add columns for the type of bonus (sign-up vs referral), any requirements I had to meet (like minimum deposit or direct deposit), and whether I received a 1099 form. One thing I learned the hard way is to also note the tax classification - some banks report bonuses as interest income while others use miscellaneous income. Having that info handy when filing makes it much easier to know where to enter each amount in your tax software. The IRS doesn't care how small the amount is, they just want it reported accurately!

I'm an expat married to a non-US citizen without an SSN, and I've been through this exact process. One thing nobody mentioned is that you can actually go to an IRS Taxpayer Assistance Center in person and they can verify your spouse's documents on the spot! This saved us from having to mail in original documents or find a Certifying Acceptance Agent. You need to call to make an appointment first (this is where Claimyr could help), but it's free and much faster than mailing everything in. Just bring your spouse, their passport, your marriage certificate, and the completed W-7 form.

I'm going through something similar right now! One additional option that might help is to check if your spouse qualifies for an exemption from getting an ITIN. If your spouse is a nonresident alien who doesn't have U.S. source income and won't be claimed as a dependent, you might be able to file as "Married Filing Separately" and treat your spouse as a nonresident alien. This could actually be beneficial tax-wise in some cases, especially if your spouse has no U.S. income. You'd file Form 1040 or 1040-SR and just put "NRA" (Nonresident Alien) in the spouse information section instead of an SSN or ITIN. However, you'll want to double-check this with a tax professional since the rules around resident vs. nonresident status can be pretty complex, especially if your spouse spent any time in the U.S. during the tax year. The substantial presence test and other factors come into play.

Make sure when you're doing the 8606 that you're consistent with your records from previous years! This tripped me up last year. If you've done backdoor Roth conversions before, line 2 of Form 8606 should include any "basis" carried over from previous years. If this is your first one, then line 2 would be $0 and line 3 would match line 1 ($7,000). Also, when you enter the 1099-R information in your tax software, some programs will try to tax the entire amount unless you specifically indicate it was a Roth conversion and direct it to Form 8606.

Just went through this exact same situation last month! One thing that really helped me was keeping detailed records of the timeline. I created a simple spreadsheet with: - Date of Traditional IRA contribution: $7,000 - Date of conversion: $7,002.35 - Interest earned: $2.35 This made filling out Form 8606 much clearer. The key insight that finally clicked for me was that the $7,000 represents your "basis" (what you put in with after-tax dollars), while the $2.35 is considered earnings that you've never paid tax on, which is why it becomes taxable income. For future years, definitely consider doing the conversion immediately after contribution like others mentioned. I set up my 2025 backdoor Roth to convert the same day to avoid this complexity entirely. Most brokerages make this really easy to automate. Also, keep good records because if you do backdoor Roths in future years, you'll need to reference this year's Form 8606 for the carryover amounts. The IRS doesn't track your basis for you - that's on you to maintain accurately!

As a newcomer to this community, I want to thank everyone for this incredibly detailed discussion! I'm in almost the exact same situation as @LunarLegend - been holding stocks for a few years but never really understood the tax implications beyond "don't report unless you sell." Reading through all these responses has been eye-opening. I had no idea that dividend reinvestment still counts as taxable income even when you never see cash. I just spent the last hour going through my Schwab account after seeing all the advice here, and sure enough, I found dividend payments from an S&P 500 ETF that I completely forgot about. The part about checking transaction history for terms like "DRIP" was especially helpful - that's exactly how I found mine. I also discovered that Schwab has a really clear tax documents section that I never knew existed. One question for the group: if I find these dividend payments now but already filed my taxes a few weeks ago without reporting them, what's the best way to correct this? Should I file an amended return immediately, or wait to see if the IRS contacts me first? Thanks again to everyone sharing their experiences - this kind of practical advice is exactly what newcomers like me need to avoid costly mistakes!

As a newcomer to this community and investing in general, I want to echo what others have said about checking your brokerage account thoroughly! I just went through this exact situation last month. I had been holding some index funds for about 18 months and assumed since I never sold anything, there was nothing to report. But after reading similar discussions online, I logged into my Vanguard account and discovered I had received over $200 in dividends that were automatically reinvested throughout the year. The tricky part was that these dividends showed up in different places depending on the investment type. My total stock market index fund dividends appeared in one section, while dividends from an international fund appeared separately. I had to look at both the "Transaction History" and the "Tax Center" to get the complete picture. For anyone in a similar situation - don't just look for a single 1099-DIV form. Some brokerages break them down by fund or account type, so you might have multiple forms. Also, the dividend amounts might seem small individually (like $15-30 per quarter), but they definitely add up over the course of a year and need to be reported as income. The good news is that once you know what to look for, it becomes much easier to track going forward. I've now set up email alerts for all dividend payments so I don't miss anything for next year's filing!

Don't forget you can also deduct equipment you buy for the team if it's not reimb

Great question! I've been in a similar situation volunteering with youth basketball. One thing that really helped me was keeping a detailed log from day one - not just mileage, but also dates, times, and purposes of each trip. The IRS can be pretty strict about documentation for volunteer deductions. Also worth noting that if you use your personal vehicle for volunteer work, make sure you're not double-dipping by claiming both the charitable mileage rate AND actual gas expenses - it's one or the other. The standard rate often works out better anyway since it covers wear and tear on your vehicle too. Have you checked if your league provides any documentation at year-end? Some organizations will send volunteers a summary letter acknowledging their service and expenses, which can be helpful for your records.