Ok but what about practical advice? My son (16) makes about $7,500 working part-time. Does he need to file? Will he get all that tax money back? His W-2 shows they took like $450 in federal taxes!!!

This is such a great discussion! I went through the same confusion when my 17-year-old nephew started working last summer. What really helped me understand it was looking at it from a different angle - minors DO benefit from government services that taxes fund, like public schools, infrastructure, emergency services, etc. The representation piece is tricky though. Technically, minors are "represented" through their parents/guardians who vote, and through elected officials who are supposed to consider all constituents. But you're right that it feels weird philosophically. One thing I learned is that the tax system has some built-in protections for minors - like the standard deduction Sofia mentioned, and the fact that most working teens end up getting refunds. It's not perfect, but there is some recognition that their situation is different from adult taxpayers. Have you looked into whether your sister qualifies for any of the education credits when she starts filing in future years? That might help offset some of the "taxation without representation" feeling!

Quick practical question - does anyone know if electric vehicle charging at work can be covered under these commuter benefits? My company just installed chargers but they're not free to use. Wondering if I can set up pre-tax dollars for that or if it only applies to parking and transit?

This is a really thoughtful question that gets at some fundamental issues with how we structure transportation policy through the tax code. From my perspective working in local government, these benefits are essentially a political compromise that emerged in the 1980s when direct transit subsidies were politically difficult to pass. They're what policy folks call "tax expenditures" - spending money through the tax code rather than direct appropriations. The parking vs transit contradiction you've identified is spot on. It's a classic example of how we ended up with competing policy goals within the same program. The parking benefit exists largely because of equity concerns - not everyone lives in areas with good transit access, and excluding those workers from commuter benefits would have made the whole program politically untenable. You're absolutely right that direct transit investment would be more effective environmentally and economically. But here's the reality: expanding Metro funding requires legislative battles every budget cycle, while these tax benefits fly under the radar once they're established. They're also easier for employers to administer than negotiating with multiple transit agencies. The irony is that your $600 annual savings probably costs the federal government more in lost tax revenue than it would cost to just improve your train service directly. But that's American transportation policy in a nutshell - we love indirect subsidies that hide the true costs.

This is such great news! I've been in the same situation with 810 codes just sitting there for what felt like forever. It's so reassuring to hear from multiple people that when they disappear, it usually means good things are happening. The IRS system is so confusing - I wish they would just send us a simple update like "hey, we're reviewing your return" instead of making us decode these cryptic numbers. But hearing that people are getting their refunds within 1-2 weeks after the codes clear gives me hope! Thanks everyone for sharing your experiences 🙌

OP, this is actually really encouraging news! I went through the exact same thing last month - had multiple 810 codes that just vanished overnight. I was panicking thinking something went wrong, but it turned out to be the opposite. Got my refund about 10 days later. The disappearing codes basically means the IRS finished whatever review they were doing and cleared your return to move forward. I know the waiting is torture (I was refreshing my transcript like every hour lol) but try to stay patient. You should see some positive movement soon! 🤞

I completely understand your stress about this - I was in the exact same position with my foreign disregarded entity LLC last year! The good news is that once you understand how these forms work together, it's much more manageable than it initially seems. Here's what I learned from working through this (and confirmed with an international tax specialist): **Form 5472**: You're absolutely correct that capital contributions go on the Part V attachment, BUT they also need to be reported on Part IV Line 12 "Other amounts received." This isn't double-counting - Part IV tracks cash flows while Part V provides the detailed breakdown. Make sure to clearly label it as "Capital contribution" on Line 12. **Form 1120**: Capital contributions don't appear in the income section at all since they're not taxable income. Instead, look at Schedule L (the balance sheet). Your capital contribution should be reported under owner's equity - typically Line 22 "Capital stock" or Line 23 "Additional paid-in capital" depending on your LLC's structure. **Form 1040NR**: You're spot-on here - capital contributions should NOT be included on Schedule C or anywhere else on your individual return. They're not personal income to you. The key insight that helped me was understanding that apparent "inconsistencies" between forms are actually by design. Each form captures different aspects of the same transaction for different regulatory purposes. My recommendation: Create a simple one-page statement explaining your capital contribution - the amount, date, and exactly where it appears (or doesn't appear) on each form. Attach this to your filing package and reference it in the margins of each form. This level of documentation shows the IRS you understand what you're doing and aren't trying to hide anything. You're being appropriately careful about getting this right, which puts you ahead of many people who just guess. Take a deep breath - you've got this!

I went through this exact same situation with my foreign disregarded entity LLC about 18 months ago, and I totally get the stress you're feeling! The complexity of coordinating these three forms is definitely overwhelming at first. What really helped me was understanding that the IRS expects these forms to look different from each other - they're designed to capture different regulatory requirements, not to match perfectly. Here's how I handled it: **Form 5472**: Capital contributions go on BOTH Part IV Line 12 ("Other amounts received") AND the separate Part V attachment. I initially thought this was double-reporting, but it's actually required - Part IV tracks cash flows, Part V provides transaction details. **Form 1120**: The capital contribution appears on Schedule L (Balance Sheet) under owner's equity. Don't look for it in the income sections since it's not taxable income. Depending on your software, it might be labeled as "Capital stock," "Additional paid-in capital," or "Owner's equity." **Form 1040NR**: You're absolutely right - capital contributions don't belong on Schedule C or anywhere else on this form. They're not personal income to you as the owner. The game-changer for me was creating a detailed reconciliation document that I attached to my return. It listed the capital contribution amount, date, and specifically noted where it appeared on each form (and why it didn't appear on 1040NR). I also added brief references like "See attached Capital Contribution Statement" in the margins of each form. I filed this way and haven't received any questions from the IRS. The key is being transparent and proactive with documentation rather than trying to make everything look identical across forms. You're asking all the right questions, which shows you're approaching this carefully. That attention to detail will serve you well!

Has anyone dealt with the situation where someone has been denied SSDI but you still claim them as disabled for tax purposes? My sister has fibromyalgia and can't work but got denied disability benefits. I'm claiming her as a dependent but worried that the SSDI denial will cause problems.

I went through something very similar with my adult son who has autism spectrum disorder. He's high-functioning but struggles with employment due to social anxiety and sensory issues. The key thing I learned is that you need clear documentation from a medical professional stating that your brother's conditions prevent him from engaging in "substantial gainful activity." The IRS definition is actually more about functional capacity than the specific diagnosis. Even if your brother doesn't qualify for SSI, if his mental health conditions genuinely prevent him from maintaining employment, and you have medical documentation supporting this, you should be on solid ground. I'd recommend getting a letter from his treating psychiatrist or psychologist that specifically addresses his ability to work and maintain employment. The letter should use language like "unable to engage in substantial gainful activity" and mention that the condition is expected to last at least 12 months. This gives you the backup documentation you'd need if questioned. The peace of mind is worth having that conversation with his doctor, even if it feels awkward to ask.