This happened to me too and I initially panicked! The "Credit Transferred out to 1040 202312" basically means the IRS moved money from one part of your tax account to your 2023 individual return. In my case, it was leftover money from estimated tax payments I made for my freelance work that exceeded what I actually owed. The IRS automatically applied it to my main tax return, which ended up increasing my refund by about $800. The key thing to remember is that this is YOUR money being moved around - the IRS isn't taking anything from you, they're just reorganizing your account. You can verify this by checking your account transcript online and looking for the corresponding "credit transferred in" entry. It should all balance out and typically works in your favor!

I just went through this same exact situation a few weeks ago and can definitely relate to that initial panic! The "Credit Transferred out to 1040 202312" notation appears when the IRS moves an overpayment from one tax account to your 2023 individual return. In my case, it was from a previous year's amended return that resulted in a credit I had forgotten about. The system automatically applied it to my 2023 taxes, which actually increased my refund by $340. What really helped me was logging into my IRS online account and checking my "Account Transcript" for both 2022 and 2023 - you should see a matching "Credit Transferred In" entry somewhere that shows the other side of this transaction. The good news is this is completely normal and usually works in your favor since it's your own money being moved around efficiently!

Anyone know if these ticket sales count toward the threshold where you need to make estimated tax payments? I normally just get a W-2 but sold about $8k in tickets last year and made like $1500 profit.

For anyone still confused about this, I just want to clarify the key points since there's some conflicting advice in this thread: 1. You MUST report the full 1099-K amount as gross income - don't just report the net profit like one commenter suggested. The IRS computer systems automatically match 1099-K forms to tax returns, and reporting only the net will trigger a notice. 2. Whether you use Schedule C or Schedule 1 depends on your intent and frequency. If you bought tickets specifically to resell for profit or do this regularly, it's a business (Schedule C). If you're just selling tickets you can't use occasionally, it's hobby income (Schedule 1, Line 8i). 3. You can deduct BOTH your original ticket costs AND the platform fees. The 1099-K shows gross payments before StubHub's fees were deducted, so you're not double-counting anything. 4. Keep good records! Save your original purchase confirmations, credit card statements, and any communications about the sales. The IRS may ask for documentation. The software tools mentioned here (taxr.ai) seem helpful for organizing everything, but make sure you understand the fundamentals so you can verify the results make sense.

I just went through this nightmare last month! My advice: don't try to do this yourself. After messing around with transcripts and getting nowhere, I finally broke down and paid a tax professional $225 to handle everything. They got my records from the IRS, filed all my back taxes, and even negotiated a payment plan. Worth every penny to not deal with the stress.

Marcus, I completely understand the stress you're going through - I was in almost the exact same situation last year! The good news is you have several solid options to get your W2 information. First, definitely start with requesting a Wage and Income Transcript from the IRS like Lily mentioned. You can get this online at irs.gov/transcripts by creating an account, or mail Form 4506-T. This will have all the key information from your W2s that employers reported to the IRS. One thing to keep in mind since you mentioned you were getting tips - make sure you have records of your tip income if you reported it throughout the year. The transcript will show what your employer reported, but if you had additional unreported tips, you'll need to include those as well. Also, don't panic about the IRS letters. Yes, penalties and interest are accumulating, but the IRS is generally willing to work with people who are making a good faith effort to get compliant. Once you file, you can often get penalty abatement for reasonable cause, especially given your circumstances with the business closure and moves. The sooner you get this sorted, the better - but you're definitely not "screwed." Thousands of people deal with missing W2s every year and get it resolved. You've got this!

This is such a timely discussion for me! I'm dealing with a similar situation where my Canadian mother-in-law is planning her estate and we're trying to understand the implications for my spouse (U.S. citizen). One thing I haven't seen mentioned yet is the potential impact of the U.S.-Canada tax treaty. The treaty can provide some relief in certain situations, particularly regarding the treatment of retirement accounts and preventing double taxation. For example, distributions from Canadian RRSPs to U.S. beneficiaries may be eligible for reduced withholding rates under the treaty. Also, timing can be crucial - if your parents are still alive, there might be opportunities to restructure some assets or make strategic distributions that could minimize the overall tax burden when the inheritance occurs. For instance, your parents might consider making annual gifts within the U.S. gift tax exclusion limits, or converting some RRSP assets to other investment vehicles that might be more tax-efficient for cross-border inheritance. I'd definitely recommend consulting with a tax professional who specializes in U.S.-Canada cross-border taxation before your parents pass away. The proactive planning could save significant taxes down the road.

I went through this exact situation when my Canadian father passed away two years ago. A few additional points that might help: 1. **Provincial vs Federal Canadian taxes matter**: Since your parents are in Ontario, be aware that Ontario has its own probate fees and tax rules that can affect the inheritance. The provincial withholding taxes on RRSP distributions can vary significantly. 2. **Consider the timing of RRSP rollovers**: If one parent predeceases the other, RRSPs can often be rolled over tax-free to the surviving spouse's RRSP/RRIF. This could delay the tax hit until the second parent passes away, potentially giving you more time to plan. 3. **Currency exchange implications**: Don't forget about currency fluctuations between inheritance and when you actually receive/convert the funds. This can create additional gains or losses for U.S. tax purposes. 4. **Estate planning with a cross-border attorney**: I wish I had done this earlier - having both parents' wills reviewed by someone familiar with both tax systems can prevent a lot of headaches. Some structures that work great in Canada can create unnecessary U.S. tax complications. The good news is that with proper planning (which it sounds like you're doing!), most of these issues can be managed effectively. The key is getting professional advice while there's still time to make strategic decisions.

im confused bout something - if im on a full-ride scholarship that pays tuition + housing + meal plan, do i need to report any of that as income??? cuz im also working part time on campus and using the 99 dependents thing!

Hey @GalacticGuru! Your employer giving you the "99 dependents" advice is unfortunately pretty common but not the correct approach. As others mentioned, you should use the "Exempt" checkbox on your W-4 instead if you qualify. Here's the key thing about your financial aid refund - you mentioned it was "substantial" which makes me think it might include money for living expenses beyond just tuition/fees. The IRS treats scholarship/grant money differently depending on what it covers: - Tuition, required fees, required books/supplies = NOT taxable - Room, board, personal expenses, transportation = IS taxable If your refund included money for housing or other living expenses, that portion would be taxable income and could affect your ability to claim exempt status. You'd need to add that taxable portion to your work income when determining if you'll owe taxes for the year. For FICA taxes on summer work - you're correct that students get an exemption, but only when working for the school where they're enrolled AND actively taking classes. Summer jobs at outside employers (like retail, restaurants, etc.) would still be subject to FICA taxes even if you're a student. I'd strongly recommend getting your specific situation reviewed since the combination of work income + potentially taxable financial aid could push you over the threshold where you'd actually owe taxes!