I had this exact same thing happen to me about 2 weeks ago! The verification request appeared overnight just like yours did. I was super worried at first, but it turned out to be totally normal - just part of their increased security measures for 2024. The whole process took about 30 minutes through ID.me and my refund processed normally after that. Don't stress too much about it, but definitely don't ignore it either since it can delay your refund if you wait too long. Good luck!

This verification request is becoming really common this year - you're definitely not alone! I went through the same thing about a month ago and it was nerve-wracking at first. The key thing is that you're seeing it in your legitimate IRS account on the official website, which is a good sign. When I did my verification, it was pretty straightforward - just had to confirm my identity through ID.me with a driver's license photo and a quick video selfie. The whole thing took maybe 15-20 minutes. My refund came through about a week later with no issues. One thing I'd recommend is to tackle it sooner rather than later. I've heard from others that waiting can sometimes cause longer delays in processing. Also, make sure you have good lighting and a clear background when you do the ID.me verification - it can be picky about photo quality!

Just a heads up - if your parents are claiming you as a dependent, make sure you select the box that says "Someone can claim me as a dependent" on your federal W-4. This is super important! My son messed this up last year and it caused his withholding to be calculated incorrectly. The form assumes you're taking the standard deduction for a single independent person unless you check that box.

As someone who works in tax preparation, I want to emphasize something that might help clarify the confusion here. The W-4 form has two main purposes: 1) telling your employer your filing status and dependency situation, and 2) calculating how much federal income tax to withhold from each paycheck. For your specific situation as a part-time college student working 16 hours/week and claimed as a dependent, here's what you should do: 1. Make sure to check the box that says "Someone can claim me as a dependent" (as Miguel mentioned - this is crucial!) 2. Put "0.00" in the additional withholding amount box 3. Don't claim exempt from withholding unless you had zero tax liability last year AND expect zero this year The "0.00" doesn't mean zero taxes will be withheld - it means zero ADDITIONAL withholding beyond what the form calculates based on your pay and dependency status. Given your low hours and dependent status, this should result in appropriate withholding that covers any tax you might owe without taking too much from your small paychecks. If you end up working more hours (like summer full-time), you can always submit a new W-4 to adjust your withholding.

Just FYI - I work at a tax firm and we're seeing TONS of errors with these 1099-Ks from payment apps. Even if u don't meet the threshold, some companies are sending them anyway. And they're including personal transfers as if they were income. Whoever designed these reporting systems clearly didn't think about how ppl actually use payment apps irl. My advice is to keep rly good records of ALL ur transfers and what they were for. Take screenshots of convos showing "here's my half of dinner" etc.

This is really helpful information everyone! I've been dealing with a similar situation with my adult kids - I send them money for textbooks, groceries, etc. and they pay me back for things like car insurance. Probably $400-500/month back and forth. Based on what everyone's shared, it sounds like I don't need to worry for 2024 taxes since the threshold is still $20k AND 200 transactions. But I'm definitely going to start keeping better records just in case. The screenshot idea is brilliant - I usually just send money with a pizza emoji or whatever, but adding actual descriptions makes way more sense. One question though - if these payment apps are making so many mistakes with the 1099-Ks, shouldn't there be some kind of penalty for them when they report personal transfers as income? Seems like they're creating a lot of unnecessary work for taxpayers and the IRS.

Just want to add that you should also keep detailed records of any expenses related to preparing the books for sale - things like cleaning, minor repairs, or professional grading if you had any done. These can be deducted as selling expenses along with the auction house commission, which will reduce your taxable gain. Also, if any of the books were particularly valuable (say over $5,000 each), you might want to consider getting a formal appraisal even now for your records. While it won't establish the stepped-up basis for tax purposes, it can help document the reasonableness of your basis calculations if the IRS ever questions them. Many rare book appraisers can provide retroactive valuations based on market conditions at the time of inheritance. One more thing - make sure to keep copies of the auction catalogs and any condition reports the auction house prepared. These documents can be invaluable for supporting your tax reporting and demonstrating that you've made good faith efforts to properly value the inherited items.

Great advice from everyone here! I went through something similar when I sold my grandmother's coin collection through Heritage Auctions. One thing I learned that might help - if you're having trouble establishing the stepped-up basis value, check if the auction house has any records of similar items they sold around the time you inherited the books. Many auction houses keep detailed sales databases and can provide comparables if you explain it's for tax purposes. Also, regarding the 1099-K threshold - even if you don't receive one, the IRS can still see payment processor records if they audit you, so definitely report everything. I made the mistake of only reporting what was on my 1099 forms my first year dealing with auction sales and got a notice later when they cross-referenced with payment data. One last tip: if you plan to sell more books in the future, consider spreading sales across multiple years to manage your tax bracket, especially since collectibles are taxed at that higher 28% rate. Sometimes timing can save you quite a bit in taxes!

Here's a quick cheat sheet for Form 5329 and Roth distributions that might help: 1. Qualified Roth distribution (over 59½ + 5-year rule met) = No Form 5329 needed 2. Early distribution with exception (education, first-time home buyer, etc.) = Form 5329 needed to claim exception 3. Early distribution with no exception = Form 5329 needed to calculate 10% penalty 4. Contribution issues (excess contributions) = Different part of Form 5329 Hope this helps!

Don't forget that you might need Form 8606 even if you don't need Form 5329! Form 8606 is used to track the basis in your Roth IRA and to determine how much of a distribution is taxable if it's not fully qualified.