Great question about tax gain harvesting! I did this exact strategy last year when my income was low. Just want to emphasize a few key points that have been mentioned: 1. You can indeed buy back immediately - there's no waiting period for gains like there is for losses (wash sale rule) 2. The gain is locked in the moment you sell, regardless of when you repurchase 3. Make sure you're only doing this with long-term holdings (over 1 year) to qualify for the 0% capital gains rate One thing I'd add is to be strategic about which specific lots you're selling if you have multiple purchases of the same stock. You can use "specific identification" to choose exactly which shares to sell to maximize your tax benefit. Also, don't forget to factor in any transaction fees - while the tax savings are great, make sure the brokerage fees don't eat into your benefits too much. Good luck with your harvesting strategy! It's a smart move to take advantage of your low income year.

One additional consideration that might be helpful - if you're planning to do this regularly (not just this year), you might want to keep a spreadsheet tracking your cost basis adjustments. Each time you sell and rebuy, you're establishing a new cost basis for those shares, which will affect future tax calculations. For example, if you bought Stock XYZ at $50, it's now worth $80, and you sell and rebuy at $80, your new cost basis becomes $80. This "steps up" your basis and could reduce future capital gains when you eventually sell for good. Also, since you mentioned your income is around $22,000, you're well within the 0% bracket (which goes up to $44,625 for single filers in 2024), so you have plenty of room to harvest gains. Just make sure to account for any other income sources you might have throughout the year that could push you over that threshold. The strategy you're considering is really smart - taking advantage of low income years to realize gains tax-free is one of the best tax optimization moves you can make!

There's a fundamental misunderstanding about refunds I need to clarify. A refund is primarily a return of YOUR money that was over-withheld, not a gift from the government (with some exceptions like refundable credits). With multiple short-term employers, each employer calculates withholding as if that's your only job for the full year, which often results in NO withholding for very short-term positions due to annualization calculations in the withholding tables. If your total income is below $13,850 (2023 standard deduction), you'll have zero tax liability, so any withholding would be refunded. But if nothing was withheld, there's nothing to refund unless you qualify for refundable credits like EITC.

I went through something similar a couple years ago! Worked at a restaurant for 3 weeks, a retail store for 2 weeks, and did some temp office work for about a month. Here's what I learned: The good news is that with such limited income, you're almost certainly under the standard deduction, so you won't owe any federal taxes. The tricky part is figuring out how much (if anything) was actually withheld from those short paychecks. In my case, two of the three jobs barely withheld anything because the payroll systems assumed I'd be working there all year at that rate. But one job did withhold federal taxes, so I got that back plus qualified for a small EITC. My advice: gather all your W-2s first, then use the IRS withholding calculator or a tax software to get a realistic estimate. Don't stress too much - worst case scenario you break even, best case you get a nice little refund!

For anyone else confused about stock options, here's what I learned after dealing with this last year: you don't report anything when options are granted (unvested) or when they vest. The tax stuff only happens when you exercise them (buy the shares). NSOs get reported on your W2 at exercise. ISOs don't get reported on your W2 at exercise, but might trigger AMT. Then when you sell the shares, that's another taxable event reported on your 1099-B from your broker. The whole system is needlessly complex!

This is such a helpful thread! I'm in a similar situation with stock options at my startup, and I've been worried about missing something important. One thing I'd add from my research is that it's worth keeping detailed records of all your option activities from day one - grant dates, vesting schedules, exercise prices, fair market values at exercise, etc. Even though you don't report anything initially, having organized records will save you huge headaches later when you do exercise and sell. I created a simple spreadsheet tracking everything, and my tax preparer was so grateful to have all the info organized. The IRS requires you to calculate your basis correctly when you eventually sell the shares, and missing documentation can be a nightmare to reconstruct years later!

I went through this exact situation last year and learned a few hard lessons that might help you avoid my mistakes. First, when you amend your return, make sure you also calculate and pay any penalties for late payment since the IRS considers fellowship income as earned throughout the year, not just when you file. For entering it in TurboTax, go to Federal > Income & Expenses > Less Common Income > Other Reportable Income. Look for "Other Income Types" and select "Other Income Not Already Reported." Enter your fellowship stipend amount and put "Fellowship" in the description field. One thing nobody mentioned yet - if your fellowship is over $600 and you didn't receive a 1099, you technically should file Form 1099-MISC for yourself (weird, I know). Not everyone does this, but it's technically required. Also, don't forget that you'll owe self-employment tax on the fellowship income since it's not subject to payroll taxes. The quarterly estimated payments you're planning are smart, but calculate them based on your total expected tax liability, not just the fellowship portion. Use Form 1040-ES and remember the safe harbor rule - if you pay 100% of last year's tax liability through quarterlies, you won't owe penalties even if you end up owing more.

I went through this exact same situation during my first year of grad school! You're definitely not alone in being confused - fellowship income is one of those weird tax situations that most software and support staff don't handle well. For TurboTax specifically, here's what worked for me: Go to Federal > Income & Expenses > Less Common Income, then look for "Other Income" or "Miscellaneous Income." There should be an option for scholarship/fellowship income that wasn't reported on a tax form. Enter just the stipend portion (living expenses) as taxable income - not the tuition or fees that went directly to the school. One tip that saved me a lot of headache: contact your graduate school's financial aid office and ask for a "fellowship tax allocation letter." They can break down exactly what portion went to qualified education expenses (tuition, fees, required books) versus your taxable stipend. Most schools can provide this even if they don't automatically issue tax forms. Also, you're absolutely right to plan quarterly payments for 2024! Fellowship recipients are technically considered self-employed for estimated tax purposes, so you'll want to use Form 1040-ES to calculate those payments. It's much easier than dealing with amendments later. The good news is that fellowship stipends are only subject to regular income tax, not self-employment tax, so at least you don't have to worry about that additional 15.3%!

Varo is usually good. Mine came early. Check your account details. Make sure they're correct. IRS doesn't make mistakes often. But it happens. Give it until end of day tomorrow. Then worry. Most people get their money on time.

I'm in the exact same boat! DDD 3/18 with Varo and still nothing as of this morning. Last year my refund hit 2 days early around 6 AM, so I was expecting it yesterday or today. I've been checking the app obsessively too! 😅 From what I've read, Varo's early deposit timing can be inconsistent - sometimes it depends on when the IRS sends the ACH files to the banks. I'm trying not to panic yet since we still have until tomorrow, but the waiting is definitely nerve-wracking when you're counting on that money!