11 Does anyone know if classes that were paid for in 2023 but taken in 2024 count for the 2023 or 2024 tax year? My 1098-T is showing Box 1 amount for what I paid out of pocket, but I'm confused about which year I claim it since the payment and the actual classes are in different tax years.

Just want to clarify something important about the timing issue mentioned - if your employer paid for Spring 2025 classes in December 2024, those expenses would typically count for your 2024 tax year (not 2025) since that's when the payment was made. However, there's an exception for academic periods that begin in the first three months of the following year. Since Spring 2025 likely starts in January-March 2025, you might have the option to claim those expenses on either your 2024 or 2025 return, but not both. The IRS allows this flexibility for payments made in the last few months of the year for the next year's spring semester. Also, regarding the W-2 reporting - if your employer paid $5,953 and it was through a Section 127 educational assistance program, only the amount over $5,250 (so $703) should appear as taxable income on your W-2. The first $5,250 is tax-free regardless of whether the education is job-related or not.

The 570 code is like a yellow traffic light in the IRS processing system - it's not a full stop, just a pause while they check something. I've seen this happen to many people this tax season. The good news is that for most folks, it resolves within 2-3 weeks without any action needed. Think of it as your return going through an extra security checkpoint at the airport - annoying but usually just a brief delay. If you're worried, you can always call, but be prepared for a long wait or busy signals - it's like trying to get concert tickets when they first go on sale.

Thanks everyone for sharing your experiences! This is my first time dealing with a 570 code and honestly, I was starting to panic a bit. Reading through all these timelines is really reassuring - it sounds like most people do eventually get the 571 release code. I'm at about day 12 since mine appeared, so based on what @Christian Burns and @Noland Curtis shared, I'm probably still within the normal timeframe. Going to try to be patient for another week or two before calling. The airport security checkpoint analogy really helps put this in perspective @Isabel Vega! Fingers crossed mine resolves soon.

idk why small businesses make things so difficult for themselves. There's literally free software for generating these forms smh

I'd definitely verify the EIN and cross-reference the amounts with any payment records your client has (bank deposits, check stubs, etc.). While handwritten 1099-NECs aren't technically illegal, they're so rare nowadays that it raises questions about the employer's record-keeping practices. You might also want to ask your client if they received any other tax documents from this employer - sometimes businesses that cut corners on one thing do it elsewhere too.

Has your husband asked his school about emergency loans or payment plans? Many law schools have emergency funds or can defer some costs that might reduce how much you need to pull from retirement. Also look into Grad PLUS loans which can cover living expenses, not just tuition. Might be better long-term than raiding retirement.

Just want to emphasize what others have said about the Traditional IRA rollover approach - this is likely your best bet. When your husband leaves his job, he can roll the 401k into a Traditional IRA, then withdraw for qualified higher education expenses (tuition, fees, books, supplies) without the 10% penalty, though you'll still owe income tax. One important detail: make sure to keep detailed records of all education expenses you're using the withdrawal for. The IRS can ask for documentation, and you want receipts showing the expenses were for qualified items. Room and board don't qualify for the education exception, but tuition and required books/supplies do. For the medical debt portion, if your unreimbursed medical expenses exceed 7.5% of your adjusted gross income, that portion can also avoid the 10% penalty. You'll need good documentation for this too. The timing works in your favor since he's starting school soon - you can coordinate the withdrawal timing with when you actually incur the education expenses.

Congratulations! This gives me so much hope - I filed on Feb 8th and have been checking my transcript obsessively. I'm also cycle code 0405, so it sounds like we're in the same batch. My transcript still shows "N/A" for my refund date, but seeing your timeline makes me think I should see an update soon. Quick question - did your transcript show the DDD first thing in the morning, or did it update throughout the day? I've been checking at like 6am every day but wondering if I should check again later. Also, did you get any kind of notification from Capital One when the deposit hit, or did you just happen to check your account? Thanks for sharing the details about your cycle code and timeline - this community has been so helpful for tracking patterns!

This is exactly the kind of detailed timeline that helps everyone! I'm also with Capital One 360 and can confirm they're really good about releasing tax refunds as soon as they receive the ACH notification. Filed on Feb 14th with cycle code 0405 too, so fingers crossed I'm in the same processing batch as you. One thing I learned from lurking here is that the transcript usually updates overnight between Tuesday and Wednesday for 05 cycle codes, then deposits typically hit 3-5 days later. Your experience confirms that pattern perfectly. Thanks for mentioning that you paid TurboTax upfront instead of having fees deducted - I've seen some posts suggesting that refund transfers can add delays, so it's good to know the direct deposit route worked smoothly for you. Hoping my deposit shows up soon too!