My cousin was on Price is Right and won a car. He didn't realize he'd have to pay taxes before taking possession! Had to come up with like $4k in taxes before they'd give him the keys. Make sure you know when any tax responsibility is due - sometimes it's before you get the prize!

Great question! I went through something similar when I won on a radio contest. One thing that really helped me was keeping detailed records of everything - the original paperwork from the show, any correspondence about prize values, and photos of the actual items if possible. The IRS sometimes challenges the stated fair market value of prizes, especially for vacation packages where the retail value might be inflated. If you think the $7,800 valuation seems high for what you actually received, you might want to research comparable vacation packages and appliance prices to see if that number is reasonable. You're stuck reporting whatever value the show assigns, but having backup documentation can help if there are ever questions. Also, don't stress too much about triggering an audit just from prize winnings - it's pretty common and the IRS expects people to win things occasionally. As long as you report it properly and keep good records, you should be fine!

Another international student here! Important note: if you received ANY kind of scholarship, grant, or stipend that covered your tuition or living expenses, you might need to file forms beyond just the 8843. Some scholarships are considered taxable income even if you never saw the money directly. When I first came to the US, I only filed Form 8843 but later found out my tuition waiver was technically reportable. Had to file an amended return which was a huge hassle.

This is such a helpful thread! As someone who just started on a J-1 visa this January, I'm learning so much from everyone's experiences. One thing I want to add that might help other newcomers: check if your home country has a tax treaty with the US! Some countries have agreements that can affect how you file or what forms you need. My international student advisor mentioned this but I haven't looked into it deeply yet. Also, does anyone know if there are different requirements for J-1 research scholars versus J-1 students? I have friends in both categories and I'm wondering if we all follow the same rules for Form 8843. Thanks to everyone sharing their experiences - it makes navigating this so much less scary when you can learn from people who've actually been through it!

Has anyone used the laptop depreciation feature in QuickBooks? I can't figure out how to set it up properly and their help docs are useless.

I went through this exact same confusion when I started my consulting business! One thing that really helped me was understanding the difference between business use percentage - if you use the laptop for both personal and business purposes, you can only depreciate the business portion. So if it's 80% business use, you'd only depreciate 80% of the cost. Also, don't forget to keep good records of when you started using it for business (that's your "placed in service" date for depreciation purposes). And if you're just starting out, definitely talk to a tax professional about whether Section 179 or regular depreciation makes more sense for your specific situation - it can really depend on your expected income levels. The QuickBooks setup isn't too bad once you get the hang of it, but like others mentioned, you might want to track the depreciation calculations separately and just enter the annual amounts as journal entries.

Just wanted to add my experience as someone who recently went through this process! Like others have mentioned, the PTIN itself is just a registration - no test required. But I did complete the Annual Filing Season Program afterward and found it really valuable. One thing that helped me a lot during my AFSP studies was creating a study schedule that focused on one topic per week rather than trying to cram everything. I spent extra time on the areas that Giovanni mentioned - especially basis calculations and rental property rules. Those seem to trip up a lot of people. Also, don't underestimate the importance of understanding client communication and professional standards. Even though you're not taking a test for the PTIN, once you start preparing returns professionally, you'll need to know things like due diligence requirements, recordkeeping obligations, and when you're required to advise clients about potential penalties or issues. The IRS has some free webinars throughout the year that are really helpful for staying current. I'd recommend signing up for those even before you officially start preparing returns. Good luck with your career transition - it's been really rewarding for me!

Carmen, you've gotten such great advice here! I went through a similar panic when I first started in tax prep a few years ago. Just to add one more perspective - even though the PTIN itself doesn't require a test, I'd strongly recommend treating your preparation like you ARE studying for an exam. What I mean is: even though you can technically start preparing returns with just the PTIN registration, you really want to be confident in your knowledge before touching anyone's actual tax return. Mistakes can be costly - both for your clients and for your reputation as a new preparer. I'd suggest picking up a good tax preparation course or textbook (like the ones used for AFSP prep) and working through it even if you're not planning to take that test right away. This will give you the solid foundation you need to prepare returns competently and help you decide if you want to pursue additional credentials later. Also, consider starting with simpler returns your first season - maybe focus on W-2 wage earners without a lot of complications. You can gradually take on more complex situations as you gain experience and confidence. Many successful preparers build their practices this way rather than trying to handle everything from day one. You've got a good accounting background, so you're already ahead of many people entering this field. Trust your instincts and don't be afraid to refer clients to more experienced preparers when you encounter situations beyond your current knowledge level. That's actually a mark of professionalism, not weakness!

I got Notice 1462 about 5 weeks ago and I'm still in the waiting game too. From what I've gathered from this thread and my own research, it seems like the IRS is being extra cautious this year with fraud prevention, which is causing a lot of these delays. Mine was probably triggered because I had some side income from selling things online that I reported as miscellaneous income. The hardest part is the uncertainty - you never know if it'll be resolved in a few more weeks or drag on for months. I've been checking my transcript every Friday morning with my coffee, which has become a weird ritual at this point! One thing that's helped me mentally is remembering that the IRS isn't trying to keep our money - they're just overwhelmed and being super thorough. Hang in there everyone, we'll get through this eventually! 💪

I received Notice 1462 about 4 weeks ago and wanted to share my experience so far. Like many others here, I think mine was triggered by claiming the Child Tax Credit for my two kids. The notice itself is pretty vague - just says they need additional time to process my return and to allow 60 days for completion. I've been checking my transcript weekly (Sundays have become my check day!) and so far no changes. What's been most helpful is reading everyone's experiences here - it's reassuring to know this is happening to a lot of people and isn't necessarily a red flag. I called once after waiting 2.5 hours on hold, only to be told exactly what the notice said. Won't be doing that again! For anyone just getting their notice - try to stay patient, set up your IRS online account to check transcripts, and don't drive yourself crazy checking daily. This community has been a huge help for keeping me sane during the wait! 🙏