Based on my experience with tax preparation, yes, college dorm payments generally count as rent for tax purposes. When TurboTax asks about rent payments, they're typically trying to determine eligibility for various credits and deductions that may be available to renters. A few key points to consider: 1. **State-specific benefits**: While not all states offer renter's credits, answering "yes" to the rent question helps the software determine what benefits you might qualify for in your specific state. 2. **Documentation**: Make sure you have your housing statement separate from your tuition bill - this helps clearly show the housing costs versus educational expenses. 3. **Dependency status**: Since you mentioned your parents helped cover costs, check whether they're claiming you as a dependent. This can affect which tax benefits you personally can claim, even if you paid for housing. 4. **Funding source doesn't matter**: Whether you paid with loans, savings, or family help, you're still considered the one who paid rent since you were responsible for the housing payment. For your $9,800 in dorm costs, I'd recommend answering "yes" to the rent question and let TurboTax guide you through any state-specific benefits you might qualify for. The software will handle the complexities of what counts toward different types of credits and deductions.

Yes, absolutely keep your housing statements for multiple years! The IRS recommends keeping tax-related documents for at least 3 years after filing, and some situations may require longer retention (up to 7 years in certain cases). For dorm expenses specifically, I'd suggest creating a simple filing system where you keep: - Annual housing statements/receipts - Any financial aid documentation that shows how aid was allocated between tuition and housing - Records of any payments you made directly (whether from loans, savings, or family contributions) This becomes especially important if you ever get audited or need to amend a return. Plus, having organized records from previous years can help you better understand your tax situation and make more informed decisions about housing and financial aid in future years. Since you're planning to stay in dorms next year, you're being smart to get organized now. Consider scanning or photographing your documents as backups too - it's much easier to retrieve a digital copy than trying to get duplicate statements from the university years later!

This entire discussion has been incredibly valuable! As someone who frequently uses local small businesses for everything from custom cakes to handmade crafts, I've encountered this exact scenario multiple times and never fully understood the implications until now. What really stands out to me is how this practice creates risks for everyone involved - businesses expose themselves to tax compliance issues and potential payment processor account closures, while customers lose buyer protections and potentially participate in misrepresenting transaction types. The 2% processing fee that businesses are trying to avoid is negligible compared to potential IRS penalties of up to 20% plus interest. I love the collaborative solutions that have emerged from this discussion. Rather than simply avoiding businesses that request friends & family payments, offering to cover processing fees or suggesting compliant alternatives shows genuine support while maintaining ethical boundaries. This approach turns what could be an uncomfortable confrontation into a constructive conversation that benefits both parties. For anyone dealing with similar situations, the three-step approach that's been outlined seems perfect: have a supportive conversation about compliance risks, offer practical alternatives like covering fees or using different payment methods, and use their response as an indicator of their overall approach to business ethics. Moving forward, I'm definitely going to implement this strategy with local businesses I want to support. Most small business owners probably don't fully understand these compliance risks and would appreciate customers who care enough to help them operate properly.

This discussion has been incredibly thorough and educational! As a newcomer to this community, I'm impressed by how everyone has balanced supporting small businesses with maintaining proper tax compliance. What really strikes me is how this situation puts customers in an uncomfortable ethical position. We want to support local businesses we love, but we shouldn't have to choose between that support and following tax laws or maintaining our consumer protections. The bakery is essentially asking customers to help them avoid both Venmo fees and IRS reporting requirements, which creates liability for everyone involved. I particularly appreciate the collaborative solutions that have emerged here - especially the idea of offering to cover processing fees or suggesting alternatives like cash payments. This transforms what could be an awkward confrontation into a supportive conversation that helps the business stay compliant while maintaining the customer relationship. The point about home-based food businesses having substantial tax deductions available is crucial. Many small business owners focus so intensely on avoiding the immediate 2% processing fee that they miss much larger deduction opportunities that could more than offset those costs. A conversation with a tax professional might reveal that they're actually losing money by trying to avoid proper business payment processing. For situations like this, I think the key is approaching business owners as an ally rather than an adversary. Most are probably unaware of the compliance risks they're creating and would genuinely appreciate customers who care enough to help them operate legally and sustainably.

I went through the exact same thing about 2 months ago and completely understand your panic! That "return closed" message from Input Correction ERS/Rejects is actually really good news, even though the wording is terrible. It means they finished reviewing whatever flagged your return and cleared it for processing - definitely NOT a denial! The ERS (Error Resolution System) team handles returns that need manual corrections or additional review. When they say "closed" they mean they completed their work and resolved whatever issue was causing the delay. It's like closing a support ticket after fixing the problem. The late night timing (8:59 PM) is totally normal for their automated system - mine came at 2:17 AM and I thought it was sketchy too lol. They just send these updates whenever they finish processing cases, regardless of the time. I got my refund deposited exactly 10 days after getting that message. Don't reply since they specifically said not to - just keep checking Where's My Refund every few days and watch your bank account. You're actually in the final stretch now! The hardest part (waiting for manual review) is over. Your money is definitely coming! 💰🙏

I had this exact same experience! Got that cryptic "return closed" message from Input Correction ERS/Rejects at like 10:30 PM and immediately thought they were denying my refund. The wording is so confusing - they really need to update their messaging to be clearer. But everyone here is right, it's actually good news! It means they finished whatever manual review was needed and your return is cleared to move forward. I got my refund 8 days after that message. The late night timing is just how their automated system works - it sends updates whenever they complete processing, even at weird hours. Don't stress, your money is definitely coming! Just keep checking Where's My Refund every few days and try not to obsess over it (easier said than done, I know). You're in the home stretch now! 💰

Has anyone dealt with the situation where some accounts were individual (not joint) accounts of the deceased spouse? I'm dealing with this right now - some accounts were joint, but others were solely in my husband's name. I'm the executor of his estate, but I'm confused about how to report interest from his individual accounts.

I'm sorry for your loss, Sophia. This is actually a very common situation, and you're handling it correctly by asking for guidance. Since these were joint accounts, you should report all the interest income on your single tax return, even though some 1099-INT forms show your wife's SSN. The key thing to remember is that joint account income belongs to the surviving spouse. Here's what I recommend: 1. Report all interest on Schedule B of your tax return 2. List each payer exactly as shown on the 1099-INT forms 3. Include a brief statement with your return explaining that some 1099-INT forms were issued under your deceased spouse's SSN because she was the primary account holder on joint accounts You do NOT need to file a separate return for your deceased wife in the second year after her death. That would only be necessary if she had income that belonged solely to her estate. Make sure to contact those financial institutions to update the primary account holder information so future tax documents will be issued with your SSN. Most institutions will need a certified copy of the death certificate and may have specific forms to complete. The IRS is familiar with this situation, so don't worry too much about automatic flags - your explanatory statement should resolve any questions.

I think there's confusion about how SBTPG compares to regular banks. When you see people posting that their bank released their tax refund early, that's usually with direct IRS deposits. SBTPG is different because they're a third-party processor - they have to wait until they actually receive the funds from the IRS, then they take out any tax prep fees you might owe, and only then do they forward the remainder to your bank account. In my experience last year, my credit union showed the deposit exactly on the DDD around noon, while my sister with Chase didn't see it until the next morning even though we had the same DDD.

As someone who's been through this exact situation, I can confirm that SBTPG will stick to your DDD of 2/25 - they won't release it early. I had a similar DDD last month and spent way too much time refreshing my bank app expecting it to show up early (spoiler: it didn't!). What I learned is that SBTPG operates differently from regular banks that might post IRS refunds a day early. They receive the funds from the IRS on your DDD, process any fee deductions if applicable, then initiate the transfer to your bank account. In my case, the money hit my account around 2 PM on the exact DDD date. Since you're so organized with your budgeting (love the spreadsheet prep!), you can confidently plan for the funds to be available on 2/25. The waiting is the hardest part, but at least you know exactly when to expect it!