Do you know if there are specific forms we need to use for reporting crypto specifically? Or is it just the normal capital gains reporting forms?

For cryptocurrency transactions, you'll use the same forms as other capital assets - primarily Form 8949 (Sales and Other Dispositions of Capital Assets) and Schedule D (Capital Gains and Losses). There's no special crypto-specific form. On Form 8949, you'll need to list each transaction separately with description, date acquired, date sold, proceeds, cost basis, and gain/loss. Then the totals carry over to Schedule D. Make sure to check the correct box at the top of Form 8949 depending on whether the exchange provided you with a 1099-B and whether the basis was reported to the IRS.

I had a $15k loss in 2023 and carried it forward. You'll use Schedule D and it will calculate how much you can use in the current year (up to $3k against ordinary income if you have no capital gains to offset). The remaining amount carries forward automatically and you'll need to keep track of it for future years. Your tax software should handle the calculations, but keep your previous returns handy since you'll need to know how much loss you're carrying forward each year. Mine took about 5 tax years to fully utilize.

Thanks for sharing your experience! Did you have to file any special forms when you did your taxes to show that you'd corrected the excess contribution? And did Fidelity calculate the earnings for you or did you have to figure that out yourself?

Yes, I had to report the correction on my tax return. Fidelity calculated the earnings for me (it was only about $215 since I caught it pretty quickly). They sent me a 1099-R form showing the distribution coded as "return of excess contributions" which I reported on my taxes. I also had to file Form 8606 to report the non-deductible IRA contribution and conversion. On that form, I only reported the allowable contribution amount ($6,000), not the full amount I originally put in. My tax software (I used TaxAct) had a specific section for handling excess contribution removals, which made the process pretty straightforward once I had the documents from Fidelity.

This is actually incorrect advice that could cause problems. You cannot pre-contribute to an IRA for a future tax year before January 1st of that year. While you can contribute to the previous year until the tax filing deadline, you cannot contribute to a future year early. The only option here is to remove the excess contribution (plus earnings) or face the 6% penalty that applies each year until the excess is removed.

Thanks for the insight! I did keep copies of everything and took photos of the completed forms before mailing them. About the address - that's actually a concern. I might be moving to a different apartment in August. Should I submit a change of address form with the IRS now, or wait until closer to my move date?

I recommend waiting until about 2-3 weeks before your move to submit Form 8822 (Change of Address) to the IRS. If you do it too early, they might start sending mail to your new address before you're there. Make sure you also submit a change of address with USPS, as they can forward your mail for up to 12 months. This gives you double protection against missing important IRS notices. And don't forget to update your address with your school's international student office as well, since they handle your tax documentation for visa purposes.

Not all states have income tax though. And for nonresident aliens, state tax filing requirements vary widely depending on which state they live in. Some states don't require nonresidents on F-1 visas to file at all if their only income is from a qualified scholarship.

I had no idea banks could do that! Is this something most banks offer or only certain ones? And do you just call them up and ask for it?

Not all banks offer this service, but many of the larger online banks do. Ally, Capital One, and Marcus by Goldman Sachs definitely have this option. Some traditional banks offer it too, but you often have to specifically ask for it. You typically need to fill out a W-9 form with your tax withholding preferences. Some banks let you do this online through your account settings, while others require you to call customer service or submit a form. It's worth checking your bank's website under "tax information" or calling them directly to ask about "federal tax withholding on interest income.

Can confirm this works. I had a similar situation with unexpected 1099 income and got hit with a $400 penalty. Called the IRS, politely asked about the First Time Abatement policy, and they removed it completely. Definitely worth trying!

Exactly! Many people don't realize the IRS has this policy. You can request it by phone, through a letter, or your tax professional can request it for you. Just make sure you specifically mention "First Time Penalty Abatement" when you ask. They won't automatically offer it even if you qualify!

Can you use a Solo 401k if you already have a 401k through your full-time employer but also have a side business? I've been wanting to shelter more of my side income from taxes.

Yes, you can have both a 401k through your employer and a Solo 401k for your side business. The $23,000 employee contribution limit applies across ALL of your 401k accounts combined. So if you've already maxed out your employer 401k, you can't make additional employee contributions to your Solo 401k. However - and this is the great part - you can still make the employer contribution to your Solo 401k, which is up to 25% of your business net income. This is completely separate from anything happening in your day job's 401k. Just make sure your side business is legitimate with actual income, not just a hobby.

Defined Benefit Plans can be amazing for high-income self-employed professionals like yourself. They allow contributions well beyond 401k limits - potentially $300k+ annually depending on your age, income, and years until retirement.