I went through this exact same situation when I first moved to the US! The W9 requirement felt overwhelming at first, but it's really just standard banking paperwork. What helped me understand it better was thinking of the W9 as the bank's way of saying "we need to confirm you're a US person for tax purposes so we know which forms to use if we ever need to report anything about your account." Since you have an SSN and have been here over 12 months, you're considered a US person for tax purposes, which means W9 instead of the W-8BEN form that non-US persons fill out. The key thing to remember is that this doesn't create any new tax obligations for you. Joint accounts are still treated as one account for tax purposes, so there's no double taxation concern. The bank just needs your information on file to comply with federal reporting requirements. Once you submit it, you're done - it's not something you'll need to think about again unless you open new accounts. The whole process is much more straightforward than it initially seems when you're navigating the US system for the first time!

I'm also navigating this as someone relatively new to the US tax system, and I wanted to add something that helped me understand the bigger picture. The W9 is part of what's called "backup withholding" prevention. Essentially, if the bank doesn't have your correct taxpayer identification number (SSN) on file, they're required by law to withhold 24% of any interest or other payments they make to you and send it directly to the IRS. By filling out the W9 correctly, you're preventing this automatic withholding. Even though you don't have income right now, this protects you if the account ever earns interest in the future. Without the W9, that 24% would be automatically withheld from any interest payments, and you'd have to claim it back when filing taxes - which is just unnecessary paperwork and hassle. So think of the W9 as protecting your future self from automatic tax withholding, rather than creating any new tax obligations. It's actually working in your favor by ensuring you keep control over your money rather than having the bank automatically send portions to the IRS. This perspective helped me feel better about all the banking paperwork when I was getting established here. Hope it helps you too!

dont forget to save all your receipts whatever option you choose. learned that one the hard way lol

Another option to consider is an Education Savings Account (ESA/Coverdell ESA) if you qualify - it allows up to $2,000 annually in after-tax contributions that grow tax-free and can be withdrawn tax-free for qualifying education expenses including K-12. The income limits are pretty strict though (phaseout starts around $95k-$110k depending on filing status). Also worth noting that some employers offer backup childcare benefits that might help with occasional PreK costs!

Just to add a data point - I traveled internationally last year owing about $8k to the IRS. Had zero issues with my passport. The $55k threshold is real, I confirmed with my tax professional. You should be totally fine with $2,200. But definitely keep making those payments!

@McKenzie Shade - You can breathe easy! Your $2,200 debt is nowhere near the $55,000 threshold that would trigger passport restrictions. I went through something similar last year when I owed about $3,800 and was panicking about a work trip to Europe. Called the IRS frantically and they confirmed the debt amount has to be "seriously delinquent" (their exact words) before they notify the State Department. The delay in your payments showing up online is totally normal - mine took almost a month to appear in the system. Keep your payment confirmations just in case, but you should be good to go for your May trip. Once you get back, definitely try to get that formal payment plan set up when their systems are working again. It'll give you peace of mind and protect you from any future issues. Have a great vacation!

I'm going through this exact same nightmare with my IBIT holdings right now! Those monthly gross proceeds entries with no cost basis had me convinced I was about to owe taxes on thousands of dollars I never actually received. After reading through all these responses, I feel so much better knowing this is a common WHFIT quirk rather than some major tax issue I'm missing. The explanation about these being return of capital distributions that adjust your cost basis makes total sense - it's just the fund handling internal transactions rather than actual distributions to shareholders. I'm definitely going to follow the advice here about contacting my broker's tax department specifically to confirm they're tracking these basis adjustments properly. And I'll start keeping my own spreadsheet just in case their system doesn't handle it correctly when I eventually sell. Thanks to everyone who shared their experiences - this thread probably saved me from either overpaying taxes or spending hundreds on an accountant to figure out something that's actually pretty straightforward once you understand the WHFIT structure!

I'm dealing with this exact same IBIT situation and it's been driving me crazy! After reading through all these responses, I finally understand what's happening with those mysterious monthly gross proceeds entries. For anyone else confused by this: these are NOT taxable distributions you need to worry about. The WHFIT structure of IBIT means the fund handles internal transactions (like covering fees) that get reported on your 1099-B but don't actually create taxable income for you. The key insight that clicked for me is that these amounts reduce your cost basis in the ETF. So if you bought shares at $40 and had $1.50 in these "proceeds" over the year, your adjusted basis becomes $38.50 per share. You'll pay slightly more in capital gains when you eventually sell, but you're not getting double-taxed. I'm going to call my broker's tax department tomorrow to confirm they're tracking these basis adjustments properly. Based on what others have shared here, it sounds like the tax specialists are much more knowledgeable about these WHFIT quirks than regular customer service. Thanks to everyone who explained this - you've saved me from either overpaying taxes or spending a fortune on an accountant to figure out what's actually a pretty standard reporting requirement for these Bitcoin ETFs!

8 Just want to mention that if you're from a country that has a tax treaty with the US, that can sometimes override the substantial presence test. I'm from India, and even though I qualified as a resident alien under the usual rules, certain income was treated differently because of the treaty. Check out IRS Publication 901 (Tax Treaties) to see if your home country has a treaty that might affect your situation. It could potentially save you a lot in taxes!

4 One thing nobody mentioned yet - if you're a resident alien, you might need to file an FBAR (FinCEN Form 114) if you have foreign bank accounts that exceed $10,000 combined at any point during the year. Non-resident aliens don't have this requirement. This is separate from your tax return and has serious penalties if you're required to file but don't. The deadline is April 15 but it automatically extends to October 15.