Called IRS today - 2 hour wait just to be told to wait longer lmaooo 🤡

Same here! Filed with H&R Block on Jan 30th with EIC and still stuck on "processing" - it's so frustrating when you're counting on that money. At least now I know about the Feb 15th hold requirement, that makes me feel a bit better about the delay. Hope we all get our refunds soon! 🤞

I'm dealing with a similar situation right now! Got my 1098-T last week and those Box 4 and 6 adjustments had me completely stumped. What really helped me understand it was looking at my actual 2022 tax return to see what I originally reported for education expenses and scholarship income. Here's what I found when I dug into my paperwork: the school had initially reported higher scholarship amounts in 2022 than what I actually received (they counted some aid that got cancelled). So the Box 6 adjustment was reducing that overstated scholarship amount, which actually HELPED my tax situation for 2022. The key thing I learned is to compare the Box 4 and Box 6 amounts to see the net effect. In your case, they reduced scholarships by $1000 but only reduced expenses by $600, so your taxable scholarship income for 2022 would actually decrease by $400. That could mean you overpaid taxes that year and might be due a refund if you amend. I'd definitely recommend pulling out your 2022 return and seeing exactly what education numbers you reported before deciding whether to amend. The math might work in your favor!

I went through this exact same situation last year and it was incredibly frustrating at first! What helped me finally understand it was realizing that Box 4 and Box 6 are basically the school saying "oops, we reported the wrong amounts for a previous year." In your case, since you didn't attend school in 2023 but got a 1098-T anyway, this is definitely a prior year adjustment situation. The $660 in Box 1 and $1100 in Box 5 for 2023 seem odd if you weren't enrolled, so I'd double-check with the school about whether those should actually be zero. But focusing on the Box 4 ($600) and Box 6 ($1000) amounts - these are adjustments to your 2022 tax year. Since they're reducing your 2022 scholarships by more than they're reducing your expenses ($1000 vs $600), your taxable scholarship income for 2022 should decrease by $400. This could actually mean you're owed a refund for 2022! However, like others mentioned, don't forget about education credits. If you claimed AOTC in 2022, that $600 reduction in qualified expenses could significantly impact your credit amount. My advice: pull out your 2022 tax return, see what you originally reported for education expenses and scholarship income, then calculate the impact of these adjustments on both your taxable scholarship income AND any education credits you claimed. You might be pleasantly surprised by the result!

Can I just double check - the person who is 19 can still file their own return even if they're claimed as a dependent by their parents, right? They would just check the "can be claimed as a dependent" box?

Just want to add another perspective here - I work as a tax preparer and see this situation all the time. Your brother definitely sounds like he qualifies as a qualifying relative dependent based on what you've described. One thing I always tell clients is to keep good records of the support you're providing. Since your parents are paying for housing, food, phone bill, etc., I'd recommend they keep receipts or bank statements showing these expenses. If the IRS ever questions the dependency claim, you'll want documentation that proves they provided more than half of his support for the year. Also, even though he's not working now, if your brother does get a job later in the year, just make sure his total gross income stays under $4,450 to maintain his qualifying relative status. If he goes over that threshold, your parents won't be able to claim him as a dependent for 2025.

Don't forget about the tax implications! If that final RMD went into her account after death, someone still has to pay taxes on it. If it goes to the estate, the estate will pay the taxes. If it goes back to the IRA and then to you as beneficiaries, you would report that distribution on your tax returns. Either way, the custodian will issue a 1099-R for that distribution. Make sure it's issued correctly depending on how you resolve this - to either the estate's tax ID or to you and your brother's SSNs if you're able to have the distribution redirected.

I went through something very similar with my father's IRA last year. One thing that really helped was getting everything documented in writing from the IRA custodian before making any decisions. When I called them, I specifically asked for written confirmation of: (1) the exact date the RMD was processed, (2) whether my dad had already satisfied his annual RMD requirement before his death, and (3) what their standard procedure is for handling distributions that occur after the account holder's death. Having that documentation was crucial when working with the estate attorney and the bank. The custodian actually admitted they shouldn't have processed the RMD after the death date and helped us reverse it back to the IRA so it could be properly distributed to the named beneficiaries. Also, don't wait too long on this - there are time limits for correcting these kinds of errors. Most custodians are pretty helpful once they understand the situation, but you need to act quickly while the paperwork trail is still fresh.

Has anyone here successfully claimed wigs as a medical expense? My oncologist wrote me a prescription for a "cranial prosthesis" (medical term for wig) after my chemo caused hair loss. I spent $2,400 on two decent wigs last year but not sure if I can include that with my other cancer-related expenses.

I'm so sorry to hear about your diagnosis, Olivia. I hope your treatment is going well and you're getting the support you need. I went through a similar situation with my father's cancer treatment that spanned 2023-2024. The key thing to remember is that medical expenses are deductible in the year you actually pay them, not when the services were rendered. So your $3,400 from 2024 can be claimed on your 2024 return (due this year), and all the expenses you're paying in 2025 would go on your 2025 return. One thing that helped us tremendously was keeping a dedicated folder for ALL medical receipts - not just the obvious ones like surgery and chemo, but also parking fees at the hospital, mileage logs for every trip to appointments, prescription receipts, and even things like special foods recommended by his oncologist. You'd be surprised how much these "smaller" expenses add up. Also, make sure you're tracking any insurance reimbursements carefully. You can only deduct what you actually pay out-of-pocket after insurance coverage. If you get reimbursed later, you might need to adjust future returns. The 7.5% AGI threshold can be tough to meet in normal years, but unfortunately cancer treatment costs often push people over that limit. Keep meticulous records - the IRS can be very particular about medical expense documentation. Wishing you strength through your treatment journey!