One little trick I learned with H&R Block specifically - sometimes you need to go back and purposely change an answer then change it back again to get the education credits to "refresh" and show up. Try going back to the education section, change something minor, then change it back and continue forward. Stupid software glitch but it worked for me last year!

Hey Diego! I had the exact same issue last year with my MBA program. The problem ended up being that I was accidentally indicating my entire scholarship amount was for qualified expenses when part of it was actually for living stipends. Here's what fixed it for me: Go back to where you entered your 1098-T info and make sure you're only counting the scholarship portion that went toward tuition/fees as reducing your qualified expenses. If any of that scholarship money went toward housing, meals, or other living expenses, that portion shouldn't reduce your eligible education expenses for the credit. Also double-check that you're entering it in the right section - some software has separate places for "scholarships/grants" versus "education expenses" and if you mix them up, it can make the credit disappear entirely. With your $24k income, you're definitely eligible, so it's got to be a data entry issue somewhere. Try manually walking through the education section step by step rather than just importing the 1098-T directly. Sometimes the automatic import doesn't categorize things correctly.

I want to echo what others have said about being really careful with the terminology here. "Tax exempt" status is very specific and most working people don't qualify for it. What you probably want to do is adjust your withholding allowances temporarily. One thing I'd add that hasn't been mentioned much - consider looking at your year-to-date withholding on your most recent paystub before making any changes. If you've already had a lot withheld this year, you might have more room to reduce withholding during your overtime period without owing at tax time. Also, since you mentioned this is warehouse work with overtime, remember that overtime pay is taxed at your regular rate, but the withholding might be calculated as if that higher paycheck amount was your normal pay all year (this is called "annualizing"). This can result in over-withholding on overtime pay, which is another reason why a temporary adjustment might make sense. Just make sure to put a calendar reminder to change your W-4 back after the holiday season ends, and maybe run the numbers through the IRS withholding calculator first to see what adjustment would be appropriate for your situation.

Great question! I see there's already some excellent advice here, but I wanted to add a practical tip that might help. Before making any W-4 changes, try using the IRS's own Tax Withholding Estimator tool on their website - it's free and designed specifically for situations like yours where income varies throughout the year. The tool lets you input your year-to-date earnings, expected overtime hours, and current withholding to calculate exactly how much you should adjust. This is especially helpful for warehouse/overtime workers because it accounts for the irregular pay patterns. One more thing - if your employer offers direct deposit, consider having the extra money from reduced withholding automatically transferred to a separate savings account earmarked for taxes. That way if you do end up owing a little at tax time, you'll have the money set aside and won't be scrambling. This gives you the best of both worlds: more cash flow during expensive holiday months, but still being prepared for tax season. Just remember what others have said about switching back your withholding in January - maybe set the reminder for mid-January so you have time after the holiday chaos settles down!

Just wanted to add that you should also make sure you have proper documentation for those uneven business expenses you mentioned. The IRS likes to see clear records showing which partner paid for what, especially when expenses aren't split 50/50. Keep copies of receipts, bank statements, and maybe even a simple spreadsheet tracking who paid for what and when. Also, since you're keeping the profits in the business account for future marketing expenses, make sure you're treating that business account properly - don't mix personal and business expenses. It'll make next year's taxes much cleaner and help protect your LLC status if there are ever any legal issues down the road.

I've been using TurboTax Business for my partnership LLC for the past two years and it's handled everything fine. For your situation with $850 in revenue and straightforward expenses, it should work perfectly. The software walks you through Form 1065 step-by-step and automatically generates the K-1s for you and your partner. A few tips that helped me: 1) Make sure you have your operating agreement handy when you start - TurboTax will ask about profit/loss sharing percentages, 2) Enter each expense with notes about who paid for it (the software has fields for this), and 3) Double-check that your EIN is entered correctly in every section - I made that mistake once and it caused filing issues. The pass-through taxation others mentioned is correct - you'll both owe taxes on your share even though the money is sitting in your business account. But honestly, with only $425 each in profit (assuming 50/50 split), your tax liability won't be huge. TurboTax Business costs around $180 but it's worth it for the peace of mind on your first partnership return.

Let me provide some clarity on what's happening: • The IRS implemented enhanced verification measures for 2024 filing season • Using an IP PIN validates your identity at submission but doesn't exempt you from secondary reviews • When online verification isn't available after receiving a letter, it indicates your case requires phone verification • This isn't a system malfunction but an intentional security feature • The process typically adds 3-5 weeks to refund processing The best course of action is to call the specific number on your verification letter during non-peak hours (typically before 9am or after 4pm local time). Have your letter, tax return information, and previous year's AGI ready when you call.

I went through this exact situation last year and can share what worked for me. When the online verification option disappeared after I received my letter, I was initially frustrated like many others here. However, I found that calling the IRS early in the morning (around 7:30 AM) significantly reduced my wait time - I got through in about 25 minutes instead of the usual hours-long wait. The representative explained that even with an IP PIN, certain algorithmic triggers can still flag returns for additional verification. It's not a glitch, but rather multiple security layers working independently. She was able to complete my verification over the phone in about 10 minutes by asking me questions about my previous tax returns and current filing. My advice: Don't wait for another letter. Call the number on your verification notice early in the morning, have your Social Security card, driver's license, and last year's tax return handy. The phone verification is actually faster than waiting for the mail process to complete. Given that you're on a fixed income, getting this resolved quickly will get your refund processed sooner.

4 For the business name, could I make up something like "John Smith Tutoring Services" or does it need to be officially registered somewhere? I've been tutoring math on the side but never thought about the business name aspect.

Just a heads up for anyone reading through this thread - make sure you keep detailed records of all your tutoring income throughout the year, even if it's just tracking payments in a simple spreadsheet. I learned this the hard way when I couldn't remember exactly how much I made from different students last year. Also, if you're using your car to drive to tutoring sessions, you can deduct either the actual expenses (gas, maintenance) or use the standard mileage rate (65.5 cents per mile for 2023). The mileage deduction can add up quickly if you're driving to students' homes regularly. Just make sure to log your business miles - the IRS likes documentation for vehicle deductions. One more thing - if you're planning to continue tutoring next year and think you might make more than $1,000 in profit, start looking into quarterly estimated tax payments. It's easier to pay as you go than get hit with a big bill and potential penalties at tax time!