23 Has anyone tried just putting like $1 of income instead of $0? My accountant friend suggested this makes it less likely to trigger a flag in the system while still giving you essentially the same loss deduction.

I just went through this exact situation last year with my Etsy shop! Started in late 2023 with about $3,800 in startup costs but no sales until 2024. The key thing I learned is that you absolutely CAN claim these expenses even with zero income. In TurboTax, go to the Business section and select "I'll enter my business info myself" when it asks about 1099s. Then just enter $0 for income but add all your legitimate business expenses - tools, materials, website costs, home office, etc. One important tip: make sure you can justify that this is a real business and not a hobby. Keep records of your business activities, any marketing you did, your business plan (even informal), and evidence you intended to make a profit. The IRS gets suspicious of businesses that show losses year after year with no income. Your Schedule C loss will flow through to your main tax return and reduce your W-2 income, which could give you a nice refund! Just be prepared to explain your business activities if questioned.

I'm experiencing the exact same thing with my transcript! Those 766 and 768 codes with the 4/15 date are definitely placeholders - I learned this the hard way last year when I made financial plans based on that date. This year I'm claiming EITC again due to reduced income from switching to part-time work for health reasons. Reading everyone's experiences here is so helpful. It sounds like the pattern is pretty consistent: the 4/15 placeholder stays for several weeks during PATH Act verification, then suddenly updates to an 846 code with your actual deposit date about 5 days before the money arrives. I've been checking my transcript daily but I think I'll switch to weekly checks to reduce the stress. The waiting is tough when you're counting on that refund, but at least knowing this is normal for PATH Act returns helps manage expectations. Thanks for starting this discussion - it's reassuring to know we're all going through the same process!

I'm dealing with this exact same situation right now! I've had those 766 and 768 codes showing the 4/15 date on my transcript for about three weeks now, and it's been driving me absolutely crazy trying to figure out what it means. This is my first year claiming EITC after some unexpected circumstances reduced my income significantly. Reading through all these experiences has been incredibly reassuring - I had no idea that the 4/15 date was just a standard placeholder for the tax deadline rather than an actual refund date. I've been making the mistake of checking my transcript daily (sometimes multiple times a day) which has just been adding to my anxiety about the whole process. It's really helpful to hear from so many people who went through the same thing and eventually got their refunds. The consistent pattern everyone describes - placeholder dates for several weeks, then suddenly an 846 code appears with the real deposit date about 5 days out - gives me hope that this is just how the system works rather than something being wrong with my return. I'm definitely going to take the advice about switching to weekly transcript checks instead of daily ones. The PATH Act verification process sounds frustrating but at least predictable once you understand what's happening. Thanks everyone for sharing your stories - it makes this waiting period so much more bearable knowing I'm not alone in this!

Based on my experience dealing with similar reporting questions, banks typically don't report regular personal transfers like what you're describing. The $800-900 monthly transfers for shared household expenses wouldn't be considered taxable income to you since they're reimbursements, not payments for services or rent. The key factors that help keep this clear are: 1) The money is going toward legitimate shared expenses, 2) You're not making a profit from the arrangement, and 3) The amounts are consistent and reasonable for household cost-sharing. I'd recommend keeping simple records of what expenses the money covers (mortgage portion, utilities, etc.) and maybe a basic written agreement between you two outlining the arrangement. This way if there are ever any questions, you have documentation showing these are expense splits rather than income. The main reporting thresholds to be aware of are the $10,000+ cash transaction reports and the new $600+ payment app reporting for business transactions, but regular bank transfers between individuals for personal expense sharing don't typically trigger either of these.

I went through something very similar when my girlfriend moved in and started contributing to the mortgage and bills. What really helped me understand the reporting requirements was getting clear on the difference between "income" and "reimbursement." Since your boyfriend is paying his share of actual household expenses that you're both benefiting from, these transfers are reimbursements, not income to you. You're not providing him a service or making money off the arrangement - you're just splitting costs. Banks don't typically report these kinds of regular personal transfers to the IRS. The main things that get automatically reported are interest earned, certain business payments, and large cash transactions over $10,000. Your monthly $800-900 transfers for shared expenses wouldn't fall into any of these categories. That said, I'd definitely recommend keeping good records - maybe a simple spreadsheet showing what portion of each bill his transfers cover. If you ever get questioned (which is unlikely), you can easily show that the money was going toward legitimate shared expenses and you weren't profiting from the arrangement. The fact that you're thinking about this upfront shows you're being responsible about it. As long as you're genuinely splitting expenses and not charging him above-market rent or making profit, you should be fine.

Just a heads up - make sure you keep good documentation of everything. Your mom might still try to claim the credit anyway, and if both of you claim it, the IRS will definitely flag both returns. Maybe have a calm conversation with her explaining what you've learned here. If she still insists on trying to claim it, you might want to file your return early so it goes through first. The second person to file claiming the same credit will likely get a letter from the IRS.

I went through almost the exact same situation last year! My dad was convinced he should claim my education credits because he helped pay for some of my expenses, even though I wasn't his dependent anymore. What really helped me was sitting down with him and going through the actual IRS dependency tests together. We used the IRS Interactive Tax Assistant online to determine my status step by step. Once we confirmed I didn't meet the criteria to be claimed as a dependent (mainly because of my income level), it became crystal clear that the education credits belonged to me. The key thing to remember is that it's not about who contributed money - it's purely about dependent status. Since you're working full-time and not a dependent, those credits are legally yours to claim. Your mom can't just decide to take them because she helped with expenses. I'd suggest showing her Publication 970 (like others mentioned) or even using the IRS Interactive Tax Assistant together. Sometimes having that official IRS source makes all the difference in family tax discussions. Good luck!

As a newcomer to this community, I wanted to thank everyone for this incredibly thorough and helpful discussion! I'm currently dealing with a very similar situation - my W-2 shows $58,300 but my FreeTaxUSA software is showing $61,450 on my 1040, and I was starting to panic thinking there was some kind of error. Reading through all these experiences has been so educational and reassuring. The biggest revelation for me was understanding that Box 1a on the 1040 combines ALL taxable income sources, not just your main W-2. I was completely focused on just my primary job income and hadn't considered other sources. After carefully reviewing my documents (inspired by everyone's advice here), I found several small income sources I had overlooked: - 1099-INT from my credit union savings account ($89) - 1099-DIV from an old mutual fund ($412) - 1099-MISC from a small freelance writing gig I did last spring ($2,650) When I add these to my W-2 amount, it accounts for almost exactly the difference I was seeing! It's amazing how these "forgotten" income sources can add up. This thread has also introduced me to some really useful resources like the document analysis tools and phone services that others have mentioned. As someone who's always struggled with understanding tax forms, having a community where people share real experiences and practical solutions is invaluable. Thank you all for taking the time to explain these concepts so clearly - you've transformed what felt like a major tax crisis into a great learning opportunity!

As a newcomer to this community, I just wanted to add my voice to this incredibly helpful discussion! I'm currently preparing my 2024 taxes and encountered almost the exact same issue - my W-2 showed $67,200 but H&R Block's software was displaying $70,850 on my 1040 form. Like many others here, I initially panicked thinking there was a major error. This thread has been absolutely invaluable in helping me understand that Box 1a on the 1040 represents ALL taxable income sources combined, not just your primary employment. After reading through everyone's experiences, I went back and carefully gathered all my tax documents, and sure enough, I found several income sources I had initially overlooked: - 1099-INT from my online savings account ($142) - 1099-DIV from some index funds ($298) - 1099-MISC from participating in a research study last summer ($185) - A second smaller W-2 from a part-time retail job I worked during the holidays ($3,025) When I add all these together with my main W-2, it accounts for exactly the amount showing on my 1040! What really strikes me about this discussion is how common this experience is, yet how scary it feels when you're going through it alone. The practical advice shared here - from checking Box 12 codes on W-2s to using the "Forms" view in tax software to trace calculations - has been incredibly helpful for someone still learning about taxes. Thank you to everyone who shared their stories and solutions. This community has transformed what felt like a potential filing disaster into a great learning experience about how the tax system actually works!