anyone else notice how many ppl getting these codes this year? seems way worse than last year tbh

Same thing happened to me! Had 810 codes for weeks and they just vanished yesterday. Called the IRS this morning and they said it's actually a good sign - means the review is complete and the return is being processed. They told me to expect movement within 1-2 weeks. The waiting game is so stressful but hang in there! 🤞

Consider the long-term perspective too! C Corps require a lot more ongoing compliance - board meetings, minutes, separate accounting systems, etc. If you incorporate in Delaware or Nevada to save on state taxes, you'll still need a registered agent in those states ($100-200/yr). Our investment group started as a C Corp in 2019 thinking we'd benefit from the lower tax rate, but we ended up converting to an LLC last year because the administrative burden and costs were eating into our returns. Plus when we did want to take some profits out, the double taxation was painful.

Another important consideration that hasn't been mentioned yet is the state-level implications. Many states don't conform to federal tax rules for business entities. For example, some states impose minimum franchise taxes on C Corps regardless of income, while others have different tax rates for pass-through entities. Also, if you're planning to trade options or futures, there are special rules under Section 1256 contracts that might affect your decision. These are marked-to-market annually and get preferential tax treatment (60% long-term, 40% short-term regardless of holding period) which could change the math significantly. One more thing - if you do go the LLC route and your trading becomes substantial, you might want to consider making an S Corp election for the LLC. This gives you the pass-through taxation benefits while potentially reducing self-employment taxes on any profits you take as distributions rather than salary (though you'd still need to pay yourself reasonable compensation). The key is really modeling out your specific situation with realistic projections rather than making the decision based on tax rates alone.

Important: Make sure the collections payments were specifically for qualified education expenses (tuition, required books, etc). If they included things like room and board, parking fees, or late payment penalties, those portions aren't deductible for education credits. You'll need to separate out the qualified vs non-qualified expenses.

I've been following this thread and wanted to add a few key points that might help clarify things for anyone in a similar situation: First, you absolutely CAN claim education credits for tuition paid to collections, but it must be in the year you actually made the payment, not when you took the classes. So your 2023 payment for 2022 tuition would go on your 2023 tax return. Second, regarding the missing 1098-T - this is super common with collections situations. The IRS doesn't actually require you to have a 1098-T to claim education credits. You just need to maintain good records of your payments and be able to prove they were for qualified education expenses if audited. Keep your payment receipts from the collection agency, any correspondence showing the debt was specifically for tuition, and ideally some documentation from your school showing the original tuition charges. The Lifetime Learning Credit is probably your best bet since you weren't enrolled in 2023 when you made the payment. It's worth up to $2,000 per year and doesn't require current enrollment like the American Opportunity Credit does. One last tip - if this was your first time owing tuition to collections, double-check that the collection agency didn't add any fees or interest. Only the actual tuition portion qualifies for education credits, not collection fees or penalties. Hope this helps! The tax code around education expenses can be really confusing, especially when collections are involved.

Make sure you keep copies of EVERYTHING you submit. The IRS loves to say they never got stuff 🙄

I was in a similar situation a few years back - missed 2 years and was stressed about it. The good news is you can absolutely file your 2024 return first if you need to, but definitely prioritize getting those back years filed ASAP. One thing that helped me was setting up a payment plan with the IRS for any penalties/interest owed on the missed years. They're surprisingly reasonable to work with if you're proactive about it. Don't let the anxiety keep you from taking action - you've got this!

2 Has anyone ever had an employer just totally mess up their W-2? Last year I had to request a corrected W-2 because they put my bonus in Box 14 instead of including it in Box 1 wages. Took them forever to fix it and delayed my filing.

I see a lot of helpful advice here, but I want to add something that might save you headaches down the road. Make sure you keep copies of all your W-2s and any documentation about pre-tax deductions from each of your 5 employers. Since you mentioned this is the first time you've seen a W-2 formatted this way, it's worth noting that different payroll companies (ADP, Paychex, etc.) can make W-2s look quite different even though they contain the same IRS-required information. The key is always to focus on the actual box numbers rather than how the form is laid out. Also, with multiple part-time jobs, double-check that your total Social Security and Medicare taxes withheld across all W-2s don't exceed the annual limits. If they do, you can claim a credit for the excess when you file. This happens more often than you'd think with multiple employers.