Quick question for everyone - my wife and I are in literally the exact same situation as OP, except my wife is only a part-time student taking 2 classes per semester. Does anyone know if the Form 8880 student restriction only applies to full-time students? Or are part-time students also disqualified?

This is such a helpful thread! I'm in a similar situation where my husband just started his master's program this fall. I was really hoping to claim the Form 8880 credit since I've been maxing out my Roth IRA contributions this year ($6,500). It's disappointing that the student rule is so strict - seems unfair that the working spouse gets penalized just because their partner is trying to better themselves through education. But I guess that's just how the tax code works sometimes. I'm definitely going to look into those education credits that others mentioned. We're probably right at the income threshold where my IRA contributions might help us qualify for a better education credit. Thanks everyone for sharing your experiences and the helpful resources!

Speaking from experience, what wealthy business owners actually do is WAY different than just swapping loans for profits. They: 1) Time their income recognition strategically 2) Maximize legitimate business deductions 3) Use entity structures to their advantage 4) Invest in assets that appreciate without creating taxable income 5) Use retirement accounts to defer taxes 6) Harvest tax losses to offset gains The loan strategy you described would be immediately problematic in an audit. Focus on legitimate tax planning instead!

I'm a tax preparer and see clients try variations of this strategy every year. The fundamental issue is that you're conflating cash flow with taxable income. Your business profit of $65,000 is taxable income that was already earned - taking out a loan doesn't change that fact. Here's what actually happens: You earn $65K profit (taxable), take a $65K loan (not taxable income, but creates a liability), then use the profit to pay the loan (not a deductible expense). You end up with the same $65K tax liability but now you've also paid loan interest for no benefit. The IRS has anti-abuse rules specifically targeting transactions that lack economic substance. What you're describing would likely be challenged as a sham transaction designed solely to avoid taxes. Instead, focus on legitimate strategies: maximize business deductions, consider retirement plan contributions, time equipment purchases strategically, or explore if your business structure is optimal for tax purposes. These approaches actually work and won't trigger audit red flags.

Just FYI, the 1099-K threshold was supposed to drop to $600 for 2023, but the IRS delayed it. For 2023 tax year (filing in 2024), the reporting threshold is still $20,000 and 200 transactions. They announced they're using 2023 as a transition year. However, for 2024 (filing in 2025), the $600 threshold is supposed to take effect. So you might not get a 1099-K this year, but expect one next year if you continue receiving payments through Venmo.

Don't forget you can actually deduct your gambling losses up to the amount of your winnings, but ONLY if you itemize deductions on Schedule A instead of taking the standard deduction. And you need to keep good records of both your winnings AND losses. For most people, the standard deduction ($13,850 for single filers in 2023) is higher than their itemized deductions would be, so it doesn't make sense to itemize just to deduct gambling losses. You'd need enough other deductions like mortgage interest, state taxes, and charitable donations to make itemizing worthwhile.

As someone who just went through this exact process last month, I can definitely relate to the confusion! Here's what helped me the most: Start with the Account Transcript (not Return Transcript) - it's like getting the full story vs. just the summary. The key things to look for are: 1) Code 150 means your return was processed, 2) Code 846 with a date is your actual refund issue date, and 3) If you see codes 570/971 together, it just means there's a review but don't stress - mine cleared in about 10 days. Since you mentioned amending paperwork, that will definitely show up with specific codes so you can track that process too. The transcript updates weekly (usually Fridays) versus WMR updating daily, but honestly the transcript gives you so much more detail that it's worth the wait. Fair warning - the ID.me verification can take a few days, so start that process ASAP even if you're still deciding. Once you're in, bookmark the direct transcript page because navigating back through the IRS site every time is painful!

As a newcomer here, I really appreciate everyone sharing their experiences! I'm in a similar situation to the original poster - filed for the first time this year and feeling completely overwhelmed by all the different ways to check my refund status. Reading through these responses, it sounds like getting set up with transcript access is definitely worth the hassle, even though the ID.me verification process sounds intimidating. Can someone clarify - if I'm checking my transcript and see that code 846 with a date, is that the date the IRS actually sends the money, or when they approve it for sending? I want to make sure I understand the timeline correctly so I can plan accordingly. Thanks for being so helpful to us newbies!

Has anyone here used QuickBooks Self-Employed instead of TurboTax Business for handling a partner buyout? I'm in a similar situation but use QuickBooks for my tax prep.

I went through a similar LLC partnership buyout situation about 18 months ago and can share some practical insights from my experience. The key thing I learned is that timing matters a lot for the tax implications. One issue that caught me off guard was the allocation of partnership income for the partial year before the buyout. Make sure you're clear on how to prorate the departing partner's share of income/losses up to their exit date. This affects their final K-1 and can get complicated if you have varying income throughout the year. Also, don't forget about the potential for "hot assets" (unrealized receivables, inventory, depreciation recapture) that could trigger ordinary income treatment rather than capital gains for the departing partner. This is especially important if your LLC has been claiming depreciation on equipment or other assets. For the mechanics, I found that creating a clear timeline of events helped enormously when filling out the forms. Document the exact date of the buyout, the valuation method used, and how the payment was structured. The IRS wants to see that everything was done at arm's length with proper documentation. TurboTax Business can definitely handle this, but make sure you have all your partnership records organized before you start. The software will walk you through most of it, but having a clear understanding of what happened and when will save you hours of confusion.