Has anyone had experience with the taxable portion of fellowships and scholarships? My program gave me a "fellowship" but didn't withhold any taxes, and now I'm freaking out about possibly owing a bunch.

This is such a common situation for grad students! Just want to add that even if you don't technically need to file, it might still be worth doing if you had any federal taxes withheld from work-study jobs or other campus employment. You'd get those taxes refunded even with zero income. Also, regarding the Lifetime Learning Credit - the key thing to remember is that whoever claims you as a dependent gets to claim the credit for expenses they paid. So if your parents are claiming you as a dependent AND they paid your tuition directly (not through loans in your name), they should definitely look into claiming that $18,500 in qualified expenses. The LLC can be worth up to $2,000 per year, so that's potentially significant savings for your family. One last tip: keep detailed records of all your education expenses, even if you don't file this year. You might need them for future tax years or if your situation changes!

Make sure to check your state's website for the CORRECT MAILING ADDRESS for amended returns! I sent mine to the regular processing address and it took 5 months to get processed because it was in the wrong department.

Great advice everyone! Just wanted to add that you should also check if your state allows you to track amended returns online. Some states have portals where you can enter your SSN and amended return info to see the status, which is super helpful especially if you're anxious about whether it was received and processed. Also, if you're getting a refund from your amendment, it typically takes longer to process than regular returns - sometimes 12-16 weeks instead of the usual 4-6 weeks. So don't panic if it seems to be taking forever! The certified mail receipt will be your proof that you filed on time if there are any questions later. One last tip: take photos of all your documents before sealing the envelope, including the completed certified mail form. Digital backup never hurts when dealing with tax stuff!

23 Has anyone dealt with the reporting side of this? When my aunt gifted me some Apple shares, my brokerage statement showed the transfer but didn't include any cost basis info. How are you actually supposed to document this for the IRS?

15 Just went through this exact situation when I received gifted shares from my parents last year. The dual basis rule is definitely confusing at first, but here's what I learned: The key is understanding that the IRS prevents you from "shifting" losses between family members while still allowing gains to transfer with the original basis. So when the fair market value at gift time is lower than the donor's original basis, you end up with two different basis amounts depending on whether you sell at a gain or loss. For your daughter's situation: - First stock: Loss of $1.50 per share ($24 FMV basis minus $22.50 sale price) - Second stock: Gain of $1.75 per share ($16.75 sale price minus $15 original basis) Make sure she keeps good records of both the original purchase info from you AND the fair market value on the transfer date. She'll likely need to file Form 8949 to explain the basis adjustments since her 1099-B probably won't show the correct basis amounts. The "lost" $2 per share from the first stock ($26 original basis to $24 FMV at gift) can't be claimed by anyone - that's intentional tax policy to prevent loss manipulation between related parties.

One thing nobody's mentioned - watch out for when you sell the house! If you've been claiming depreciation on the business portion of your home (which you should with the regular method), you'll have to recapture that depreciation when you sell. Also, the business portion won't be eligible for the capital gains exclusion ($500k for married filing jointly). That's something to consider when deciding between the regular and simplified methods. The simplified method doesn't claim depreciation, so you avoid these complications when selling.

Great question! I actually went through this exact scenario when I bought my home in 2023. Your understanding is correct - you'll split the mortgage interest proportionally between business and personal use. Since your spouse will use 15% of the home exclusively for business, that 15% of the mortgage interest becomes a business deduction on Schedule C. The remaining 85% can potentially be claimed as an itemized deduction on Schedule A, but remember it's subject to the $750k mortgage debt limit. One important consideration for California: our high property values mean you might hit that $750k cap quickly. With a $1.2M mortgage, only the interest on the first $750k of debt qualifies for the personal mortgage interest deduction. So you'd calculate 15% of total mortgage interest for the business deduction, then take 85% of the interest on just the first $750k for Schedule A (assuming you itemize). Also, don't forget about California's more restrictive mortgage interest deduction limits for state taxes - we cap it at interest on $1M of acquisition debt for state purposes, which is different from the federal $750k limit. Make sure you have solid documentation showing the exclusive business use of that 15% of your home. The IRS scrutinizes home office deductions closely, especially on higher-value properties.

Has anyone here used TaxAct for partnership returns? Their software is cheaper than the bigger names but I'm not sure if it handles all the schedules properly.

Just wanted to share my experience since I was in a similar situation last year with a small LLC partnership. You're absolutely right that the IRS website can be confusing! The key thing that helped me was realizing that Form 1065 is basically a "package deal" - all those schedules (B-1, B-2, and the K-1s) are considered part of the main return and go to the same address. Think of it like sending a book with multiple chapters rather than separate documents. One tip that saved me stress: if you're getting close to the deadline, definitely consider e-filing instead of mailing. The confirmation is instant, and you don't have to worry about postal delays or whether the IRS actually received your package. Most basic tax software can handle a simple 50/50 partnership return like yours. Also, make sure you keep copies of everything for your records, especially those K-1s since you'll both need them for your personal tax returns. Good luck with the filing!