here's the thing that drives me crazy about scholarships being taxable... we're already broke college students and then the IRS wants to take more money from us??! i got a scholarship for being a first generation college student and now i have to PAY TAXES ON IT??? make it make sense! 😡 the worst part is my parents claimed me as a dependent so i can't even get some of the education tax credits myself. the whole system is designed to keep us broke i swear

I totally get the frustration about scholarship taxation - it caught me off guard too when I first dealt with it. One thing that might help is understanding that you can potentially reduce your taxable scholarship amount by maximizing your qualified education expenses. For example, if you buy required textbooks, lab equipment, or other school supplies out of pocket, those count as qualified expenses that can offset your taxable scholarship income. Keep all your receipts! Also, some fees that aren't obviously educational (like certain lab fees or technology fees) might actually qualify if they're required for enrollment. The timing of when you pay for things can matter too. If you have flexibility in when you purchase books or equipment, you might be able to strategically time those purchases to minimize your tax liability in a given year. It's not a perfect solution, but every bit helps when you're trying to reduce what you owe on that housing/meal plan money.

One thing nobody mentioned - if you don't fill out a W-4, most payroll systems automatically default to withholding as "Single with zero adjustments" which is usually the HIGHEST withholding level. So you'll have more taxes taken out of each check than you might need to. I personally prefer slightly overwithholding (I use the "single, zero" option even though I could claim some adjustments) because I like getting a refund rather than owing money, but some people prefer having more in each paycheck.

Thanks everyone for all the helpful advice! I'm definitely going to fill out the W-4 now - sounds like I don't have a choice anyway lol. @Toot-n-Mighty your explanation about just needing to fill out Steps 1 and 5 makes it seem way less intimidating. I was looking at all those sections and getting overwhelmed. @Fatima Al-Rashid I do have student loans that'll start up again soon, so I might go with your suggestion about adding some extra withholding. Better safe than sorry, especially since this is all new to me. Really appreciate everyone taking the time to help out a confused newbie! This community is awesome.

This thread is so helpful - glad to know I'm not alone! Filed my MD return on 2/3 and it's been radio silence ever since. The "accepted but not processed" status is driving me crazy. Has anyone tried submitting a formal complaint through the MD Comptroller's website? I'm wondering if documenting these delays might help push them to improve their processing times. Also seeing a lot of people mention taxr.ai - might be worth the $1 just to get some clarity on what's actually happening behind the scenes.

Filed my MD return on 2/14 and experiencing the exact same thing - accepted immediately but stuck on "not processed" status for over a month now. This is my first time dealing with MD taxes (just moved here from PA) and I'm shocked at how slow their system is compared to other states. In PA my refunds usually came within 2-3 weeks max. Really hope they get their act together soon because a lot of people are depending on these refunds for bills and expenses. Going to try that early morning check suggestion and maybe look into the taxr.ai tool too since so many people seem to have had good luck with it.

i spent THREE WHOLE DAYS calling the irs trying to understand my transcript with the exact same issue. finaly used claimyr.com to get thru to an agent who told me this is completely normal. the verification of non-filing is auto-generated for the current year (2024) since nobody has filed 2024 taxes yet. talking to the irs agent resolved all my questions and saved my sanity, totally worth it.

This is such a common source of confusion! The "2024 Verification of Non-Filing Letter" showing up is actually completely normal and expected. Since we're still in 2024, nobody has filed their 2024 tax returns yet (those won't be due until April 2025). The IRS system automatically makes this document available for the current year. What you should be looking for to confirm your 2023 return was processed is the "2023 Return Transcript" in that same list. If you can access and download that document, it means the IRS has successfully received and processed your 2023 federal tax return that you filed in February. The fact that you got your state refund weeks ago is actually pretty typical - state tax agencies often process returns much faster than the IRS, and they operate completely independently from each other. So getting your state refund doesn't indicate anything about your federal return status one way or the other. If you're waiting on a federal refund, I'd recommend checking the "Where's My Refund" tool on the IRS website with your SSN, filing status, and expected refund amount for the most current status update.

I'm going through the exact same thing right now! Just got my second letter after completing the ID.me verification and I was so confused why they wanted me to call again. Reading through all these comments has been incredibly helpful - it's clear that the IRS has two completely separate verification processes that don't communicate with each other at all. It's absolutely ridiculous that they don't explain this clearly in their letters. I feel so much better knowing I'm not the only one dealing with this nightmare. Going to try calling first thing tomorrow morning at 7am with my old tax returns ready. Thanks to everyone who shared their experiences - this thread has been a lifesaver!

This whole thread is incredibly helpful! I'm dealing with a similar verification mess right now and was getting so frustrated thinking the IRS systems were broken (well, they kind of are). The fact that so many people have gone through this exact same confusing dual verification process makes me feel less alone in this nightmare. It's absolutely mind-boggling that the IRS doesn't clearly explain that ID.me and phone verification are two completely separate systems. I've been putting off making that call because I thought I was done after the online verification, but now I understand I have no choice. Really appreciate everyone sharing their experiences and tips - especially about calling early at 7am and having old returns ready. This community has saved me weeks of confusion!