Pro tip: Keep checking your transcript weekly. Sometimes they move faster than the Where's My Refund tool shows.

I'm going through something similar with my 2022 amended return. Been waiting since August and just had my second ID verification last week. Your transcript breakdown is super helpful - I need to pull mine to see if I have those same transaction codes. The "RETURN NOT PRESENT" thing is confusing when they clearly have your filing status on file. Hoping yours moves soon since the freeze is lifted! 🤞

Based on all the excellent advice here, I want to emphasize one more practical consideration: even if you successfully get more of your bonus upfront through questionable W-4 changes, you're essentially giving yourself an interest-free loan that you'll have to pay back at tax time. Instead of risking compliance issues, consider these cash flow alternatives: - If you have urgent expenses, look into a short-term personal loan or line of credit - Ask family or friends for a temporary loan if possible - See if you can negotiate payment plans for your urgent expenses - Check if your employer offers payroll advances or emergency hardship programs Many people don't realize that most financial institutions offer short-term lending options that might cost less in interest than the potential penalties and stress of IRS scrutiny. Plus, you maintain a clean tax compliance record. The tax professionals and compliance experts in this thread have made it clear that the risks far outweigh the temporary benefits. Your future self will thank you for handling this situation legally and responsibly, even if it means less immediate cash in hand.

After reading through all these responses, I'm really glad I asked this question here before doing something I would have regretted. The consensus is pretty clear that claiming exempt when you don't qualify is a bad idea, both legally and practically. What's been most helpful is learning about the legitimate alternatives - adjusting allowances temporarily instead of claiming exempt, understanding how different companies handle bonus withholding, and exploring other cash flow options like short-term loans or employer hardship programs. The point about IRS algorithms flagging suspicious W-4 timing patterns really opened my eyes. I had no idea they actively monitor for these kinds of changes around bonus payments. That alone makes it not worth the risk. I think my next steps will be: 1) Talk to payroll about how they specifically handle bonus withholding, 2) Look into whether my company has any emergency assistance programs, and 3) Maybe consult with a tax professional about legitimate ways to optimize my withholding for the rest of the year. Thanks everyone for steering me away from what could have been a costly mistake. Sometimes the "quick fix" isn't actually the smart fix!

Has anyone actually done this successfully? I started something similar last year and ended up with a donor-advised fund instead because the legal and compliance requirements for a private foundation were too intense. The annual reporting alone was going to cost me thousands in accounting fees.

I've been through this exact process and can share some practical insights. You're right that this sounds like a private foundation structure, and yes, it's absolutely doable with proper planning. A few key things I learned during my setup: 1. The "sole member" aspect is perfectly legal, but you'll still need independent directors on your board to satisfy IRS requirements. I structured mine with me as the sole voting member, but with 3 independent directors who handle day-to-day operations and conflict of interest oversight. 2. For the investment growth strategy - this works, but be very careful about the types of investments you choose. The "jeopardizing investments" rules are stricter than most people realize. Stick to conservative, diversified portfolios initially. 3. Your 5% annual distribution plan is solid, but make sure you're calculating it correctly. It's based on the fair market value of your non-charitable use assets, averaged over the prior 3 years. The IRS has specific rules about what counts toward this requirement. 4. Documentation is crucial. Keep detailed records showing that all decisions benefit the charitable purpose, not personal interests. The IRS will scrutinize transactions between you and the foundation very closely. One unexpected benefit: having this structure has actually made my charitable giving more strategic and impactful. The multi-year planning horizon lets you tackle bigger projects than you could with annual donations. Happy to answer specific questions about the setup process if helpful.

Has anyone else noticed that FAFSA's website is completely unhelpful about the tax implications of their aid? I spent hours trying to figure this out last year and ended up having to call my school's financial aid office.

I went through this exact same situation two years ago and totally understand your stress! Here's what I learned that might help: First, take a deep breath - with your income level and withholding, you're very unlikely to end up owing money. Your $12,000 in earned income is well below the standard deduction threshold, so even if some of your FAFSA money is taxable, you'll probably still get a refund. The key thing is to separate your loans from your grants. Loans are NEVER taxable income - you're borrowing money that you have to pay back, so the IRS doesn't count it. For grants, only the portion used for non-qualified expenses (like room and board) is potentially taxable. Here's what really helped me: I made a simple spreadsheet listing all my school expenses (tuition, required fees, required books) and compared it to my total grant money. If your grants were less than or equal to those qualified expenses, none of it is taxable. If there was excess, only that excess amount gets added to your taxable income. And don't worry about not being full-time - you can still claim education credits for part-time enrollment! The American Opportunity Credit is available for the first four years of post-secondary education regardless of whether you're full or part-time. You're doing the right thing by filing your taxes. Given your situation, I'm confident you'll get money back, not owe it!

Just wanted to add my experience since I went through this exact situation last year with my daughter. I paid her $425 for social media help with my consulting business. I ended up putting it on line 48 (Other expenses) with the description "Contract services - family member" after consulting with a CPA. The reasoning was that it provides clearer documentation for the IRS about the nature of the payment, especially since no 1099 was issued. One thing I learned that might help others - make sure you and your daughter are consistent about how you both report this. I reported it as a contractor payment on my Schedule C, so she needed to report it as self-employment income on her Schedule C (even though it was under $600). The IRS can cross-reference these if they want to, so consistency is key. Also, even without a formal contract, I created a simple written record of what work she did and when, along with copies of her deliverables (social media posts, graphics she made, etc.). This gave me solid backup documentation in case of questions later. The amount doesn't matter for deduction purposes - you get the same $387 deduction whether it goes on line 11 or line 48. It's really just about clear documentation and making sure both parties report consistently.

I've been dealing with similar questions about family member payments for my home-based business. One thing that helped me was understanding that the IRS doesn't really care which line you use (11 vs 48) as long as the expense is legitimate and properly documented. What I found most important was creating a clear paper trail. Even for small amounts like your $387, I recommend: 1. Write up a simple agreement or work order describing what your daughter did 2. Keep records of when the work was performed 3. Document how you paid her (check, Venmo, etc.) 4. Have her create basic invoices for the work The "Other expenses" approach on line 48 with a description like "Contract services - family member" or "Freelance work - under $600" seems to be the preferred method among tax professionals I've spoken with. It's more transparent and less likely to raise questions since you're clearly indicating this was a small contractor payment that didn't require a 1099. Just make sure your daughter reports it correctly on her return. If this was her only freelance income and she's not running a regular business, she might be able to report it as "Other income" instead of setting up a whole Schedule C, which could save her from self-employment taxes.