Has anyone actually been audited for education expenses? I'm wondering how closely the IRS looks at things like internet costs. I'm planning to claim about 60% of my internet bill since that's roughly how much I use for school, but I'm nervous about whether that's too aggressive.

I went through an audit two years ago that included my education expenses, including internet costs. Here's what I learned from that experience: The IRS auditor was actually quite reasonable about internet expenses. What they cared most about was having a logical method for calculating the percentage and being able to back it up with documentation. I had claimed 45% of my internet costs based on tracking my usage for two months and extrapolating from there. The key documents they wanted to see were: 1) Course syllabi or school communications showing internet was required, 2) My internet bills for the tax year, 3) My calculation method (I used a simple spreadsheet tracking hours), and 4) My class schedule to verify the time periods. 60% doesn't sound unreasonable if you can justify it. What saved me was being conservative and having a clear paper trail. I'd recommend keeping a usage log for at least a few weeks to establish your pattern, even if you estimate the rest of the year from that sample. The auditor appreciated that I had actual data rather than just guessing. One tip: if you're taking mostly online classes and using internet primarily for school during certain months, your percentage might legitimately vary throughout the year. You don't have to use the same percentage for every month if your usage patterns actually changed.

Has anyone tried just calling payroll to get a corrected W2? I'm surprised they'd make such a basic error on something as important as tax withholdings.

I had the exact same issue last year and it was incredibly stressful! Here's what ended up working for me: First, check your final paystub from 2024 - it should show your total federal withholding for the entire year, which would include both regular salary and RSU withholdings. If that total matches what you expect (regular withholding + $5.2k), then you know the money was actually withheld. In TurboTax, you can manually add the missing withholding. Look for "Federal Taxes" section, then "Other Tax Situations" or search for "additional withholding." There should be an option to enter withholding that's not shown on your W-2. Enter the $5.2k there and keep documentation of where this came from (screenshots from your stock plan account, final paystub, etc.). I also recommend calling your payroll department ASAP. Even if they can't issue a corrected W-2 before the filing deadline, they can provide written documentation confirming the withholding that you can attach to your return. This protects you if there are any questions later. Don't panic - this is more common than you'd think with RSU taxation, and as long as you have documentation that the taxes were actually withheld, you'll be fine!

For what it's worth, I just talked to my CPA about this exact issue. She said the IRS has been accepting consolidated spreadsheets for crypto transactions for years now. She recommended submitting one Form 8949 with the total amounts and checking the box indicating attached statements, then include the Excel data as supporting documentation.

I went through this exact same nightmare last year with about 8,500 crypto transactions. After trying multiple approaches, here's what worked best for me: I ended up using a combination approach - I used Koinly to import and organize all my transactions (it handled the API connections for major exchanges and CSV uploads for smaller ones), then exported everything to a properly formatted spreadsheet that matched Form 8949 columns exactly. The key things I learned: 1. Yes, the IRS absolutely accepts attached spreadsheets for large transaction volumes - it's actually their preferred method over printing thousands of form pages 2. Format your spreadsheet with the exact same column headers as Form 8949 (Description, Date Acquired, Date Sold, Proceeds, Cost Basis, Adjustment Code, Gain/Loss) 3. On the actual Form 8949, check box C and write "See attached statement" then enter your totals on line 2 4. Include your name, SSN, and "Supplement to Form 8949" on every page of your spreadsheet The IRS processing center actually thanked me in a follow-up letter for providing such clear documentation. Don't panic - this is way more common than you think and the IRS has standard procedures for handling it. You've got this!

Great discussion here! As someone who recently went through a similar family property transfer, I'd add that timing is crucial for your decision. One factor to consider is the current real estate market - if you expect significant appreciation in the coming years, transferring ownership now (through gifting or discounted sales) could be very beneficial since all future appreciation would occur outside your parents' estate and potentially at lower tax brackets for the kids. However, if your parents are in their 70s or 80s, the step-up in basis strategy Gabriel mentioned could be more valuable. You'd need to run the numbers comparing: (1) current capital gains tax on a sale now, (2) gift tax implications of transfers, and (3) potential estate tax vs. step-up benefits if held until death. Also worth noting - if you go the LP interest transfer route, make sure you understand the implications of being general vs. limited partners. The liability exposure and management responsibilities are quite different, which could affect your family dynamics around decision-making for the property. Have you considered what happens if some siblings want to sell their interest while others want to hold? The LP operating agreement should address buyout provisions and transfer restrictions to avoid future conflicts.

From a liability perspective, as limited partners you'd have much better protection - your liability would generally be limited to your investment in the partnership. However, LLCs typically offer even stronger liability protection for all members, which is why many families are moving away from LP structures for real estate holdings. Regarding professional help, I'd strongly recommend finding a tax attorney or CPA who specializes in family wealth transfer strategies. This type of planning really benefits from someone who can model different scenarios and their long-term implications. Look for someone with experience in both estate planning and real estate taxation - the intersection of these areas requires specialized knowledge. One additional consideration I haven't seen mentioned: if your family decides to hold the property long-term, think about succession planning for management responsibilities. What happens when your parents can no longer actively manage the property? Having clear governance structures in place now (whether LP or LLC) can prevent family conflicts later when someone needs to make day-to-day decisions about maintenance, tenant issues, major capital improvements, etc. The fact that you're thinking through these issues now while everyone is healthy and communicating well puts your family in a much better position than many families who wait until there's a crisis to address these questions.

I'm in a similar boat with a partnership that files late every year. After going through the stress of estimating and amending returns multiple times, I finally switched to just filing extensions and it's been so much better. One thing I learned the hard way is that even if your estimates seem reasonable, partnerships can have unexpected items that throw everything off - like surprise distributions, changes in debt allocations, or one-time events that don't show up in your estimates. I had a year where my estimate was off by over $3,000 because the partnership had an unexpected property sale that generated significant capital gains. The extension route eliminates all that uncertainty. Yes, you have to wait longer to file, but you're filing with complete and accurate information. Plus, if you're getting a refund, the IRS pays interest on refunds for extended returns just like regular returns, so there's really no financial downside. My advice: file the extension, make a conservative estimated payment, and use the extra time to organize all your other tax documents. By the time your K-1 arrives, you'll be ready to file everything at once without any stress about amendments or potential penalties.

I've been dealing with late K-1s from my REIT partnership for the past 3 years, and I've tried both approaches mentioned here. Initially I used estimates with Form 8082, but ran into exactly the issues people warned about - my return got flagged for review and I had to provide documentation explaining why I was using the form for estimates rather than actual disagreements. The IRS examiner was understanding but made it clear that Form 8082 isn't really intended for "I don't have my K-1 yet" situations. She recommended the extension approach for future years, which is what I've been doing since. What really sealed the deal for me was when my partnership had an unexpected Section 199A deduction adjustment in year 2 that my estimates completely missed. That would have been a nightmare to sort out during an examination if I hadn't already switched to filing extensions by then. Now I just file Form 4868, pay about 110% of what I paid the previous year, and wait for the actual K-1. Much less stressful and no more worried phone calls from the IRS. The few extra months of waiting is totally worth the peace of mind.