Have any of you claimed the instrument as a business expense deduction if the grandkid makes any money performing? My grandson occasionally gets paid for gigs with his saxophone and our accountant suggested this route instead of education expenses.

I'm in a very similar situation with my grandson's college expenses. One thing I discovered that might help is looking into whether your granddaughter could potentially be claimed as your dependent if you're providing more than half of her total support. Even though she's not living with you, if you're paying for housing ($750/month = $9,000/year) plus that expensive instrument, and her parents aren't providing significant support, you might meet the support test. The IRS has specific rules about what counts as "support" - including housing, food, medical care, education expenses, and other necessities. If her scholarships are covering tuition but you're covering housing and equipment costs, it's worth calculating whether you're providing over 50% of her total support for the year. If so, you might be able to claim her as a dependent and then take advantage of education credits for future qualifying expenses. I'd recommend using IRS Publication 501 to work through the dependency tests, or consider getting professional help to determine if this could work in your situation. The potential tax savings from education credits could be substantial if you can establish dependency.

I went through identity verification in January 2024 and can share my exact timeline to help ease your anxiety! Here's what happened: Jan 8: Received 5071C letter Jan 10: Called verification line (got through after 2 hours of redials) Jan 10: Completed phone verification (took about 20 minutes once connected) Jan 24: Transcript updated with refund date Jan 29: Refund deposited So 14 days from verification to transcript update, 19 days total to money in account. The verification itself was straightforward - they asked for my SSN, filing status, refund amount, and a few line items from my return. Since you mentioned urgent medical expenses, definitely emphasize this when you call. The IRS has expedited processing for financial hardship cases. Also, call first thing in the morning (7-8 AM) for shorter wait times. One thing that helped my peace of mind was checking my online account transcript every few days after verification. You'll see the 570 "additional account action pending" code clear, then 971 "notice issued" will appear, followed by 846 "refund issued" with your actual deposit date. The waiting is the hardest part, but most people get their refunds within 2-3 weeks of verification. You've got this!

I went through identity verification just last month and wanted to share my experience to help calm your nerves! Here's my timeline: Dec 15: Filed return electronically Dec 28: Received 5071C letter in mail Jan 2: Called verification number (took 3 attempts to get through - kept getting busy signal) Jan 2: Completed phone verification in about 25 minutes once connected Jan 18: Checked transcript and saw code 846 with refund date Jan 22: Direct deposit hit my account So exactly 16 days from verification to transcript update, and 20 days total to getting my money. The agent was actually very helpful and walked me through each step. A couple things that made the process smoother for me: - I had my prior year AGI written down (they always ask for this) - Made sure to call from the phone number that matched what was on my tax return - Had my ID, Social Security card, and tax return spread out in front of me Since you mentioned urgent medical expenses, definitely lead with that when you call. I've heard they can flag accounts for expedited processing in hardship situations. The verification process itself really isn't as intimidating as it sounds - they're just confirming basic info from your return and ID. You'll get through this and have your refund soon!

Has anyone run into penalties for filing the wrong form type like this? My brother-in-law filed 1099-MISC instead of NEC for his handyman business and is freaking out about possible fines.

I just went through this exact same situation last month with a client who had their office manager file regular 1099-MISC forms instead of 1099-NEC for about $32,000 in contractor payments. The correction process everyone mentioned above is spot-on, but I wanted to add a couple practical tips that saved me time: 1) When you file the corrected 1099-MISC (zeroed out), make sure to keep copies of everything for your records. The IRS processing can take a while and you'll want documentation. 2) Send the contractor both the corrected (zeroed) 1099-MISC AND the new 1099-NEC at the same time with a brief explanation letter. This prevents confusion on their end when they're doing their taxes. 3) If you're filing close to the deadline, consider sending via certified mail so you have proof of timely filing. The whole process took about 2 weeks to get confirmation from the IRS that everything was processed correctly. No penalties in my case since we corrected it within 30 days of the original filing. Your client should be fine as long as you get the corrections submitted promptly!

As someone who went through a very similar situation last year, I want to share what I learned that might help you make the best decision. First, the good news - since you have a child, you're automatically considered an independent student for FAFSA purposes regardless of your tax filing status. This means your boyfriend's income won't count against your financial aid eligibility even if he claims you as a tax dependent. However, there's an important detail to consider: only ONE of you can claim your child as a dependent. Since you live together and he provides most of the support, he would likely be the one to claim your child for tax purposes, which would give him Head of Household status and potentially the Child Tax Credit. Here's what I'd suggest: Run the numbers both ways. If you file independently, you might qualify for the Earned Income Tax Credit (EITC) with your low income, but you wouldn't be able to claim your child if your boyfriend does. If he claims both you and your child, he gets maximum tax benefits, but you lose potential credits. The key insight is that your financial aid should be protected either way due to your independent student status. So this becomes purely a tax optimization question - which filing approach gives your household the most money back? I'd recommend using a tax calculator or consulting with a tax professional to see which scenario maximizes your combined refunds.

I'm currently dealing with something very similar! I'm 20, have a 2-year-old daughter, and my partner makes significantly more than me. What really helped me figure this out was understanding that the FAFSA dependency rules are completely separate from tax dependency rules. Since you have a child, you're automatically considered independent for FAFSA no matter what happens on taxes. This was huge for me because it meant I could keep my Pell Grant and other aid even if my partner claimed me. For the tax side, we ended up having my partner claim both me and our daughter because the combined benefits (Head of Household, Child Tax Credit, etc.) were way more than what I could get filing alone with my part-time income. Even though I couldn't claim the EITC anymore, our household came out ahead by about $1,800. The key thing is to make sure you understand exactly what credits and deductions each scenario would give you. My partner got a much bigger refund claiming us both, and since my financial aid was protected anyway, it was a no-brainer. Definitely talk to your school's financial aid office just to confirm, but in most cases having your own child is the golden ticket to keeping your aid regardless of tax situations!

As an international student advisor, I'd recommend being very careful about how you report your income categories. One detail that hasn't been mentioned yet is the Substantial Presence Test - if you've been in the US since last year, depending on exactly when you arrived and how many days you were present, you might actually be considered a resident alien for tax purposes this year. F-1 students are exempt from counting days toward this test for 5 calendar years, but if you had any other status before F-1, the calculation gets complicated. Also, make sure to file Form 8843 regardless of whether you have income or not!

Don't forget about state taxes too! NRA status is for federal taxes, but states have their own rules. Some states will tax all your worldwide income if you're considered a resident of that state (usually after living there for 183+ days). Income that's exempt federally (like your Treasury interest) might still be taxable at the state level. Which state are you in?