Just wanted to add another perspective as someone who went through this exact scenario last year. We contributed $32,000 from our joint checking account to our daughter's 529, and I was initially panicking about Form 709 requirements. After consulting with our tax preparer, she confirmed what others have said here - the joint account contribution is automatically treated as $16,000 from each spouse, so no Form 709 needed since both amounts were under the $18,000 exclusion. One thing that might be helpful for the original poster: if you're still unsure, you can always call your 529 plan administrator. Many of them have tax specialists who deal with these questions regularly and can walk you through the gift tax implications. Our plan (Vanguard) was actually really helpful in explaining how the contribution would be treated for tax purposes. The peace of mind was worth the 20-minute phone call, and it saved us from unnecessarily filing paperwork or worrying about it during tax season!

Great question about the documentation! Vanguard didn't provide written confirmation over the phone, but they did refer me to specific sections in their 529 plan documents and IRS publications that I could review myself. The representative walked me through Publication 559 (Survivors, Executors, and Administrators) and Publication 950 (Introduction to Estate and Gift Taxes) to show me the relevant sections about joint account gifts. What gave me confidence was that their explanation aligned perfectly with what I found in the IRS instructions and what my tax preparer later confirmed. The Vanguard rep also mentioned that this is one of their most common questions, so they're very familiar with the rules. If you want something in writing, you could always follow up the phone call by requesting they email you the specific IRS publication references they mentioned. That way you have a paper trail of sorts, even if it's not their formal written opinion. Most 529 administrators are pretty good about providing those kinds of resources since they deal with these questions so frequently.

This is a great question that many people struggle with! Based on what you've described, this would likely be classified as self-employment income rather than hobby income. Here's why: The IRS looks at several key factors to determine business vs. hobby activity: 1. **Profit motive**: You're actively seeking out these opportunities and completing them regularly enough to earn $4,100 - this shows clear intent to make money. 2. **Regular activity**: Even without fixed hours, you're consistently checking platforms and completing tasks. This pattern of regular engagement suggests business activity. 3. **Expertise**: Your background likely makes you a good candidate for these tech-related studies, indicating you're leveraging your skills for profit. 4. **Effort and time**: You're dedicating time (15 minutes to 3 hours at a time) specifically to earn money from these activities. The good news is that reporting this as self-employment income on Schedule C allows you to deduct legitimate business expenses like: - Portion of internet costs - Equipment used primarily for testing (webcam, headset, etc.) - Home office expenses (if you have a dedicated space) - Computer depreciation These deductions can significantly reduce your taxable income and help offset the self-employment tax burden. Given that hobby expense deductions were eliminated in 2018, you're actually better off treating this as self-employment since you can deduct related expenses. I'd recommend consulting with a tax professional or using tax software that can guide you through Schedule C to ensure you're maximizing your deductions while staying compliant.

Based on everything discussed here, it's pretty clear this should be treated as self-employment income. The IRS doesn't really care about your schedule flexibility - what matters is that you're actively seeking out paid opportunities with the intent to make profit, which you clearly are. Here's what I'd recommend for your specific situation: **File Schedule C for self-employment** - This allows you to deduct legitimate business expenses, which is crucial since hobby expense deductions were eliminated in 2018. **Track these deductible expenses:** - Internet service (reasonable percentage for business use) - Equipment purchases (webcam, headset, etc.) - Any software or subscriptions needed for the work - Phone expenses if you use it for interview calls - Mileage if you travel for any in-person testing **Consider the home office deduction** - Even if you don't have a dedicated room, the simplified method ($5/sq ft up to 300 sq ft) might work if you have any space used primarily for this work. The self-employment tax is definitely a bite (15.3% on net earnings over $400), but remember that half of it is deductible on your 1040, and the business expense deductions will reduce your net profit subject to SE tax. Given that you made over $4k, you're well past the $400 threshold anyway, so you'd owe SE tax regardless of how you classify it. At least this way you can offset some of that with legitimate business deductions. Don't stress too much about the classification - your situation clearly fits the self-employment criteria based on the IRS factors everyone has outlined here.

@e97069fb8802 As someone who also immigrated here and dealt with the same confusion, I totally get your concern! The partial information display threw me off too when I first saw it. What everyone's saying is absolutely correct - this is the IRS's standard security protocol. Since you mentioned being new to the US tax system, here's something that might help: when you're reviewing your transcript, the key things to verify are your filing status, total income (AGI), federal tax withheld, and any credits you claimed. These numbers should match what's on your actual tax return. The masked personal info at the top is just for security and won't affect your refund processing at all. I remember being so worried about making mistakes that could delay my refund too! But as long as your transcript shows the same tax information as your return, you're all set. The IRS has actually gotten much better with processing times - most refunds are issued within 21 days if you filed electronically and chose direct deposit. Don't stress too much about it - you're doing everything right by double-checking your documents. That attention to detail will serve you well as you get more familiar with the US tax system! 😊

@e97069fb8802 Welcome to the US tax system! I totally understand your concern - I had the exact same reaction when I first saw my transcript a few years ago. That partial information display definitely looks odd at first glance, but everyone here is absolutely right that it's completely normal and actually a positive security feature. As someone who's been through this process several times now, I can confirm that the masked personal info won't affect your refund processing at all. The IRS systems have your complete information on file - they just display it partially on transcripts for identity protection. What really matters for your refund is that the tax data (income, withholdings, credits) matches what you filed. Since you mentioned being new to the system and counting on your refund, here's a tip that helped me: if you filed electronically and chose direct deposit, most refunds come within 2-3 weeks. You can track yours using the "Where's My Refund" tool on the official IRS.gov site - it updates more frequently than calling. Don't worry too much about making mistakes at this point - if there were any issues with your filing, the IRS would have already sent you a notice. The fact that you're being proactive and checking your transcript shows you're handling everything responsibly! 😊

Quick question - I'm in a similar situation with my daughter getting a partial scholarship. Do I need any special documentation from the school to qualify for the scholarship exception when withdrawing from her 529 plan? I'm worried about the IRS questioning it.

This is such great news about your son's scholarship! I went through something similar when my daughter got a merit scholarship that covered most of her tuition. Here's what I learned: The scholarship exception is real and works exactly as described - you can withdraw up to the scholarship amount without the 10% penalty, but you'll still owe income tax on the earnings portion. Make sure to keep that official scholarship award letter! One thing I wish I'd known earlier: you can actually use 529 funds for more than you might think. Beyond the obvious tuition and fees, we were able to use it for her required course materials, a laptop for school, and even some of her off-campus housing costs (though there are limits based on the school's published room and board allowance). Also, don't feel pressured to use it all right away. We kept some in the account for potential graduate school expenses, and you can always change the beneficiary later if needed. With $87,000 saved, you have lots of flexibility to make this work to your advantage. The scholarship exception gives you a great safety net for accessing the funds without penalties if you need them for other purposes. Definitely document everything carefully - keep receipts for qualified expenses and that scholarship letter. Congratulations again on raising such a successful student!

I'm in a similar situation and found that the key is really understanding the difference between commuting expenses (not deductible) and business travel expenses (potentially deductible). Your regular daily parking at your main office unfortunately falls into the commuting category, even though it's expensive. However, I'd suggest keeping detailed records of any parking when you travel between work locations or visit clients - those could qualify as deductible business expenses. Also, definitely push your employer again on that commuter benefits program. Even small companies can often set these up through their payroll provider with minimal administrative burden, and it would save you way more than trying to claim deductions. One thing that helped me was calculating exactly how much the pre-tax parking benefit would save me annually ($300/month × 12 months × my tax rate) and presenting that to HR as a concrete employee benefit they could offer at low cost. Sometimes showing the real dollar impact helps get these programs prioritized.

Great thread everyone! I'm seeing a lot of confusion around this topic, so let me add some clarity from someone who's dealt with this extensively. The fundamental rule is simple: regular commuting expenses (including parking at your primary workplace) are personal expenses and not tax-deductible, regardless of how expensive they are. This applies even if public transit isn't practical for your situation. However, there ARE legitimate opportunities many people miss: 1. **Business travel between work locations** - If you travel from your main office to client sites, other company locations, or temporary work assignments, those parking costs can be deductible business expenses. Keep detailed records! 2. **Pre-tax parking benefits** - This is often your best option. Even small employers can set up commuter benefit programs through payroll providers. At your $275/month parking cost, you could save $726-$1,188 annually in taxes (depending on your bracket) compared to paying with after-tax dollars. 3. **Mixed-use situations** - If you work from home some days and your home office qualifies as your principal place of business, travel from home to meet clients or conduct business could potentially be deductible. For Jessica's specific situation: Push harder on that commuter benefits program with concrete numbers. Show HR that offering pre-tax parking could save employees significant money with minimal administrative burden. Many payroll companies handle the setup automatically. Keep tracking any non-routine work travel though - those storage facility trips and client visits could add up to meaningful deductions!