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Make sure you also review if your home country has a tax treaty with the US! This can make a BIG difference. Some countries have agreements that prevent double taxation on certain types of income.
This is so important. I'm from India and we have a tax treaty with the US, but it doesn't specifically address cryptocurrency. Had to pay taxes in both countries when I sold some ETH last year. Double taxation sucks.
As someone who went through a similar situation as an international student, I'd strongly recommend documenting everything now before you make any transactions. Keep records of your original purchase date, amount paid in your home currency, and the exchange rate on that date - you'll need this to calculate your cost basis in USD. Also, consider the timing of when you sell. If you've held the crypto for more than a year, any gains would qualify for long-term capital gains tax rates, which are generally lower than short-term rates. And since you mentioned you're an F-1 student who's been here 2.5 years, definitely look into whether you qualify as a non-resident alien for tax purposes - this could significantly impact how much you owe. One more tip: some states have no capital gains tax, so if you're planning to move after graduation, the timing of your crypto sales could matter for state tax purposes too.
9 Whatever you do, don't use Liberty Tax! My brother paid them $800 for three years of back taxes last year. They made several mistakes that resulted in him getting audited. When he went back to them for help, they wanted to charge him an additional $250 for "audit assistance" even though it was their error. Go with a reputable CPA or do it yourself with good software.
1 That's concerning to hear. Any recommendations for tax software that's good for back taxes specifically? I'm leaning toward DIY at this point.
9 For back taxes specifically, I've heard good things about TaxAct's prior year returns. They're more affordable than TurboTax but still pretty comprehensive. FreeTaxUSA also offers prior year returns at a really reasonable price if your situation isn't too complex. The key thing is to make sure you're using the correct tax year's software version - the forms and tax laws change each year, so you need the specific software for 2022, 2023, and 2024 respectively. Also download and save PDF copies of everything you file, including all the confirmation numbers. You'll want a complete paper trail for back taxes.
23 quick PSA: If you qualify for IRS Free File (income under $73,000), you can use free versions of tax software even for prior years. go to irs.gov/freefile and check which ones offer prior year returns. i did 2 years of back taxes thru them last yr for $0.
5 Wait really? I thought Free File was only for the current tax year. This could save me a ton if true!
Yes, several Free File partners do offer prior year returns! Not all of them, but companies like FreeTaxUSA and TaxSlayer typically have free options for previous years if you qualify income-wise. You have to look specifically for "prior year" or "amended return" options on their sites. Just make sure you're using the right tax year version - like you need the actual 2022 software for your 2022 return, not the current year version. Definitely worth checking before paying hundreds to a tax prep service!
That's a good point, Deshaun. An 810 code typically indicates a credit or refund adjustment, so if it disappeared from the transcript, it could mean the IRS is reviewing the case or needs additional documentation to process it. @DeshaunnDa Great, you might want to check if you received any notices in the mail or consider calling the IRS directly to clarify the status of your account.
has anyone else noticed that the standard deduction increase didn't seem to help them much? i thought with the higher standard deduction we'd all be getting bigger refunds but my refund was tiny this year too.
The standard deduction increase DOES help you, but it's already factored into the withholding tables. So you've been benefiting from it all year through slightly larger paychecks rather than getting it all at once in your refund.
This is actually a great example of how the tax system is supposed to work! I know it feels disappointing when you're expecting a bigger refund, but that $4 means your payroll department nailed the withholding calculations. Think about it this way - instead of getting a $700-900 refund like previous years, you actually got to keep an extra $60-75 per month in your paychecks throughout 2024. That money was available to you when you needed it rather than sitting with the government earning zero interest. The updated withholding tables are designed to be much more precise, which is why you're seeing this change even though your income and filing status stayed the same. If you really prefer getting a larger refund (even though it's not financially optimal), you can submit a new W-4 and request additional withholding on line 4(c) for this year.
Reginald Blackwell
Has anyone looked at the annual IRS VITA grant program reports? They're published on IRS.gov and provide some general data on how many grants were awarded and total funding, though not site-specific information. Looking at the 2024 data, the average grant was around $85,000 with the expectation of completing approximately 3,500 returns per site, working out to roughly $24 per return. The competition for grants has definitely intensified - last year they only funded about 52% of applicants.
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Aria Khan
ā¢Where exactly do you find these reports? I searched IRS.gov but couldn't locate anything specific about VITA grant statistics.
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Makayla Shoemaker
This is such a familiar story - I've seen the same pattern at multiple VITA sites over the years. The pressure to increase numbers often comes from a misunderstanding of how the grants actually work. One thing that helped at our site was requesting a volunteer feedback session with the coordinator. We presented data showing that our accuracy scores were excellent (98% quality review pass rate) but volunteer retention was dropping due to scheduling issues. We emphasized that losing experienced volunteers would hurt both quality and numbers in the long run. The coordinator didn't realize that the IRS actually weights quality metrics more heavily than volume in their evaluation process. Once we clarified this, they agreed to cap appointments at reasonable levels and stop extending shifts without advance notice. You might also want to check if your site has multiple funding sources with conflicting requirements. Sometimes coordinators are trying to meet metrics from United Way, local foundations, or educational institutions on top of IRS requirements, which creates unrealistic pressure. The volunteer agreement idea mentioned earlier is worth considering too - sites that invest in training deserve some commitment, but it should be reasonable (like 40 hours over the tax season, not unlimited availability).
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