That's actually really smart paying off the CC first. I should probably do the same but I've been eyeing a new gaming laptop for months lol. Thanks for the tip about the app - just downloaded it! Any idea how long it usually takes between "sent" status and the money actually showing up in your account?

For direct deposit, it's usually super quick after it shows "sent" - I got mine the very next day. Some banks might take 1-2 business days depending on how they process incoming transfers. If you got a paper check, it'll take about a week after the "sent" status appears before it arrives in your mailbox. And seriously, pay off that credit card first! The interest you save will help you buy an even better gaming laptop in a few months.

Same experience here! I think they're just understaffed and the tracking system doesn't get updated in real-time. Mine was "processing" forever and then suddenly I just got the deposit with no warning. First purchase: new tires for my car that I've been putting off for way too long!

Oh crap I didn't even think about FBAR stuff. I do have a local bank account here but it's never had more than like $5k in it so maybe I'm ok? What happens if you miss filing those in previous years?

If your foreign accounts never exceeded $10,000 total (combined value of all foreign accounts) at any point during the year, you're not required to file the FBAR for that year. So based on what you've said, you should be fine on that front. If someone does need to file back FBARs, there's a streamlined filing procedure for people who weren't aware of the requirement. The IRS recognizes that many Americans abroad simply don't know about this obligation. The penalties for non-willful violations are much less severe than if they think you were deliberately hiding assets.

This happened to my brother too. The penalties literally doubled what he owed. He had to set up a payment plan for 3 years to clear it all.

Do you know if this would be the same process in TurboTax? I have a similar situation but use different software.

Yes, the process is similar in TurboTax, though the screens look different. In TurboTax, you'll also enter code P first when asked for the distribution code. Then during the interview process, TurboTax will ask additional questions where you'll indicate it was a return of excess contributions. The underlying tax treatment is the same regardless of which software you use - the original contribution isn't taxable (since Roth contributions are after-tax), but the earnings are subject to income tax and potentially the 10% early withdrawal penalty depending on your age and situation.

Freetaxusa does have a section where you can add notes to your return. It's in the "Miscellaneous" section under "Notes" - you can add explanations there for your own records. However, these notes don't get transmitted to the IRS with your e-filed return. For your specific 1J code, you should use code 1 as the primary code, and then in the follow-up questions, indicate it was a hardship withdrawal if that option is available. The IRS receives the full 1099-R from your plan administrator with both codes, so they'll have the complete information.

Thanks! I'll check out that notes section. Good to know the IRS still gets the full code information from the plan administrator. That makes me feel better about only being able to enter one code in the software.

That's a good point! He only has the restaurant job, no side gigs. But I'm not sure about the W-4 thing - I don't think he knew to check any specific box when he filled out his paperwork. Is that something the employer might have done automatically because of his age?

Employers shouldn't automatically mark anyone as exempt based on age alone. When your brother filled out his W-4, he would have had to specifically claim exemption from withholding by writing "Exempt" in the appropriate space. It's possible he did this without understanding it, or maybe the employer made an assumption based on his age and income level (which they shouldn't do). For his new W-4 this year, if he expects to earn more than the standard deduction ($12,950), he should definitely not claim exempt status, as he'll likely owe taxes.

Is that really true? I thought if you don't owe any taxes, there's no penalty for not filing when you're under the threshold. Why would the IRS come after someone for not filing when they weren't required to?

This is super helpful! Do you track your electricity use daily or just do a sample period? And for the solar panels, would it help if I kept logs showing the power production and how much is being directed to the mining rigs versus household use?

I do a sample tracking period of about 2 weeks each quarter to establish an average, then apply that to my bills. Seasonal changes affect both mining performance and solar output, so regular monitoring helps establish a realistic business percentage. Absolutely keep detailed logs for your solar setup. Document the total production and what portion powers your mining operation. Photos of your setup can help too. I actually have my mining rigs on a separate circuit with its own meter, which makes it extremely clear what power is being used for business versus personal. That kind of separation makes audits much easier if they ever happen.

Good point about state differences. I'm in California and they basically follow the federal treatment but I've heard some states have exemptions for certain crypto activities. Anyone know which states are most crypto-friendly tax-wise? Considering relocating my mining operation...