I work in HR and just want to add that for anyone using employer educational assistance, the EMPLOYER must maintain specific records for these programs to be compliant with IRS Publication 970 Section 10. This includes: 1) A written plan document 2) Employee eligibility requirements 3) Program limitations 4) Non-discrimination details ensuring the program doesn't just benefit owners or highly compensated employees Many smaller employers don't realize they need this formal documentation. If your employer is offering educational assistance but doesn't have these elements in place, they could be putting both themselves and you at risk during an audit.

Great question about the written plan documentation! The IRS doesn't provide an official template, but the plan needs to include several key elements to comply with Publication 970 Section 10: - Clear eligibility criteria (who can participate) - Maximum annual benefit amounts (up to $5,250) - Types of education covered - Application and approval procedures - Non-discrimination language ensuring the plan doesn't favor highly compensated employees - Plan administration details Many payroll companies and employment law firms have sample educational assistance plan templates that meet IRS requirements. You could suggest your HR person consult with your company's employment attorney or payroll provider - they often have boilerplate language that can be customized for your company's specific needs. It's definitely better to get this documentation in place proactively rather than scramble during an audit. Your HR person will probably appreciate you bringing this to their attention!

Does anyone have experience using the 2023 Pub 560 worksheet but with 2024 numbers? Did the IRS give you any trouble if you got audited? I'm worried about using outdated forms even with updated numbers.

I ran into this exact same issue last month! What helped me was checking the IRS's "What's New" section on their website - they sometimes post interim guidance or notices with updated figures before the full publication is released. Also, if you're working with a tax professional or have access to professional tax software, they often have the updated worksheets available earlier than the general public since they get advance copies. In the meantime, the 2023 version with updated 2024 limits (as others mentioned) should definitely work fine - the calculation methodology rarely changes, just the dollar amounts.

Just wanted to chime in - be careful about what's on your EIN letter. Mine also mentioned Form 720, but my accountant explained that the IRS often lists ALL potential forms a business might need, not necessarily what your specific business requires. Form 720 is pretty specialized for excise taxes on specific products/services.

I run a small greenhouse business which has some similarities to landscaping. I've never had to file Form 720 because I don't deal with any of the excise taxable items. If you're just doing regular landscaping you should be fine without it! My advice is to check Schedule C instructions (if you're a single-member LLC) to make sure you're handling your tax situation correctly for your business type.

I'm an accountant and see this ALL THE TIME this year. There are massive delays with several banks including Credit Karma. The issue is volume - the IRS is processing refunds in batches and some batches are getting delayed on the receiving end. Nothing to worry about yet, but if it goes beyond 5 business days from your DDD, then call the IRS directly to confirm it was actually sent.

I'm dealing with the exact same situation! DDD of 3/15 with Credit Karma and still waiting. After reading through all these comments, it sounds like CK is doing extra verification holds this year without notifying people. I'm going to try contacting them through the app chat specifically asking about holds like some people suggested. It's so frustrating when you're counting on that money and the bank doesn't even tell you there's an issue! Hopefully we all get our refunds soon. Thanks everyone for sharing your experiences - makes me feel less alone in this mess.

Great point about account types! Just to add some clarity for anyone reading - if this is a Roth IRA, the rules are different too. With Roth accounts, you can withdraw your original contributions (basis) at any time tax-free, but earnings withdrawals before age 59½ may be subject to taxes and penalties. For taxable accounts like the original poster seems to be describing, the proportional method mentioned earlier is typically the default, but as others have noted, you might have options like specific identification that could be more tax-efficient depending on your situation. Keep detailed records of all your transactions including dates, amounts, and any reinvested dividends - this will make basis calculations much easier whether you do them manually or use software to help.

One thing I'd add that hasn't been mentioned yet - if you're dealing with partial withdrawals regularly, it might be worth considering tax-loss harvesting strategies alongside your basis calculations. When you're withdrawing from investments that have gains, you could potentially sell other investments at a loss to offset some of the taxable gains. Also, timing can matter. If you've held the investment for less than a year, you'll pay short-term capital gains rates (taxed as ordinary income), but if you've held it for more than a year, you'll get the more favorable long-term capital gains rates. In your example with the $160 taxable gain using the proportional method, this rate difference could be significant depending on your income bracket. Just make sure you don't run into wash sale rules if you're planning to repurchase similar investments within 30 days of selling at a loss.