I think everyone's missing something important here. If your employer isn't including that $650/month on your W-2, they're handling it incorrectly. They should either be treating it as taxable wages (included on your W-2) OR requiring you to substantiate your actual expenses under an accountable plan (in which case it wouldn't be taxable if your actual expenses equaled or exceeded the allowance). You should talk to your payroll department ASAP. They might need to issue a corrected W-2, or they might need to change how they're administering the car allowance program.

This situation is more common than you'd think! I dealt with something very similar last year. The key thing to understand is that your company is essentially running two different reimbursement systems - one accountable (the credit card for documented expenses) and one non-accountable (the flat $650 allowance). Based on what you've described, you'll likely need to report the $7,800 annual allowance ($650 x 12) as "Other Income" on your tax return since it's not tied to substantiated expenses. However, since you're using your personal vehicle for business, you can potentially offset some of this by deducting vehicle expenses that aren't covered by your company's credit card. The tricky part is you can't use the standard mileage rate since your employer is covering gas and maintenance. You'll need to calculate the actual expenses for things like depreciation, insurance, registration fees, and loan interest - but only the business percentage (which sounds like it would be nearly 100% given your 48k miles). I'd strongly recommend getting this clarified with a tax professional since the interaction between the allowance income and allowable deductions can get complex. Also, definitely check with your payroll department about why this isn't appearing on your W-2 - that seems like an error on their part.

Has your cousin checked her mail carefully for the past 2 years? The IRS would have sent a CP79 notice if they disallowed her EIC. Sometimes these letters look like junk mail and people throw them away. Also, did she move in the last couple years? The notice might have gone to an old address.

I went through this exact same situation with my sister two years ago! The Form 8862 requirement caught us completely off guard too. What we learned is that the IRS has automated systems that can flag and adjust EIC claims months after you've already received your refund. Here's what I'd recommend: First, have your cousin create an online account at irs.gov and check her transcript. This will show any adjustments or notices from previous years that she might have missed. Second, when filling out Form 8862 in FreeTaxUSA, be extra careful with the qualifying child requirements - the IRS is very strict about things like the residency test (child must live with her more than half the year) and making sure the SSNs are valid for work. Don't panic about the 10-year ban someone mentioned - that's only for intentional fraud cases. As long as your cousin answers truthfully and has legitimate qualifying children, she should be fine. Keep good records though - school enrollment forms, medical records, anything that proves the kids lived with her. The IRS may audit EIC claims more closely after a Form 8862 is filed. Also, make sure she hasn't claimed these same children on previous years' returns where someone else (like their father) also claimed them. That's a common reason for EIC disallowance that people don't realize happened.

Make sure you request a "Letter 147C" from the IRS too! It verifies the EIN (Employer Identification Number) of the company that issued the 1099-R. I had a similar situation where two insurance companies had similar names, and the 1099-R was actually for someone with a similar name but the IRS computer system matched it to my SSN by mistake.

This is exactly why I always tell people to keep detailed records of everything! I went through something similar with my mom's estate last year. The key thing that saved us was having her maintain a simple spreadsheet tracking all her insurance policies, loans, and any transactions. For your dad's situation, I'd also suggest requesting Form SSA-89 from Social Security if this involves any retirement accounts - sometimes there are cross-references between agencies that can help verify whether money was actually received. Also, don't overlook checking with the post office if you suspect mail theft. They can sometimes provide delivery confirmation records going back several years. One more thing - if your dad has moved addresses in recent years, make sure the IRS has his current address on file. Sometimes 1099s get sent to old addresses and the IRS assumes you received it even when you didn't. You can verify this by calling the IRS directly or checking online.

For anyone else dealing with FICA refund delays, I finally got mine after 22 weeks! Here's what worked for me: 1) Call your local Taxpayer Advocate Service office. They can sometimes help with extreme delays. 2) Have all your documentation ready - copy of your Form 843, any supporting evidence, and proof of when you mailed it. 3) Be polite but persistent! The first person I talked to wasn't helpful, but the second person really went to bat for me. Also worth noting - I got a letter about 2 weeks before my refund arrived saying it had been approved but would take additional time to process. So if you get that letter, you're almost there!

Has anyone else noticed that FICA refunds seem to come faster if you file them electronically rather than by mail? I filed mine electronically through my accountant in April 2025 and got the refund in exactly 10 weeks. My brother mailed his in February and he's still waiting.

Quick question - has anyone here successfully claimed both the Lifetime Learning Credit AND used employer tuition reimbursement in the same year? My situation seems similar to the original poster.

Laura, I went through almost the exact same situation with my MBA program last year! The timing confusion is totally normal - don't worry about the "mess" because this is actually pretty straightforward once you understand the key principles. Here's what I learned: You're absolutely right that you can maximize the $5,250 exclusion across multiple years. Since your reimbursements will span 2025-2026 (and potentially into 2027 if any payments are delayed), you can indeed take advantage of the annual exclusion in each year you receive payments. For your 2024 taxes, you'll report the 1099-T but won't report any reimbursement income since you didn't receive any in 2024. The January 2025 reimbursement will count toward your 2025 tax year, and so on. One thing to watch out for that saved me money: make sure your employer properly codes the reimbursements on your W-2. The first $5,250 each year should be excluded from your taxable wages, not just have taxes calculated differently. If they're including the full amount as taxable income, you'll need to work with HR to get that corrected. Also consider whether you want to claim education credits (like Lifetime Learning Credit) on the expenses that aren't covered by the tax-free reimbursement - just remember you can't use the same expenses for both benefits.