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Has anybody tried the IRS Direct File beta this year? I heard they're testing a completely free filing system directly through the IRS, but I'm not sure if it handles education forms like 1098-T. Anybody have experience with it?
I tried it! It does handle 1098-T forms and education credits, but there are some limitations. It only works for pretty simple tax situations and only certain states are eligible. I qualified in Arizona and it worked great for me with my 1098-T, but if you have anything complicated it'll tell you that you're not eligible. Worth checking if you qualify though!
Just wanted to add another free option that worked well for me - FreeTaxUSA. I used it through the IRS Free File portal and it handled my 1098-T without any upgrade fees. The interface isn't as polished as TurboTax, but it walked me through the American Opportunity Credit step-by-step and I got my full refund. One tip: make sure you have your 1098-T handy because you'll need to enter the amounts manually, but it's pretty straightforward. They also have good customer support if you get stuck on the education credit calculations. Definitely worth trying if the other options don't work out for you!
FYI - don't forget that if you're going to report gambling winnings and want to claim your losses to offset them, you HAVE to itemize deductions on Schedule A. You can't take the standard deduction AND deduct gambling losses. So for a small win like $275, it might not be worth itemizing if your standard deduction is higher than your itemized deductions would be.
This is such an important point that people miss! I made this mistake last year when I reported about $800 in casino winnings. I tried to claim my losses too but still took the standard deduction. My tax software flagged it as an error. For most people, unless you have mortgage interest or huge medical expenses, the standard deduction ($13,850 for single filers in 2023) is WAY higher than what you'd get itemizing.
Just to add another perspective - I work in tax prep and see this question come up a lot. While technically you're supposed to report all gambling winnings, the practical reality is that for amounts under $600, many people don't bother and it's rarely an issue. The bigger concern is being consistent - if you're going to report small winnings, make sure you're also tracking and reporting ALL your gambling activity throughout the year, not just the wins. Also worth noting that if you do decide to report it, you'll need to pay taxes on the full $275 even if you lost money on other nights at the casino (unless you itemize and can prove those losses with documentation). So if you're taking the standard deduction, you're essentially paying taxes on gross winnings without being able to offset losses.
This is really helpful context from someone who actually does tax prep! I'm curious though - when you say "many people don't bother" with amounts under $600, is that just based on what you observe, or is there some kind of unofficial threshold the IRS uses? I'm trying to figure out if there's a practical difference between what's technically required and what actually gets enforced. Also, the point about being consistent with ALL gambling activity is good - I definitely didn't think about having to track every single casino visit if I report one.
I'm in a similar boat with my 2022 amended return that I mailed in February 2024. The uncertainty is definitely the worst part! One thing I've learned from my tax preparer is that the IRS has been dealing with a massive backlog of amended returns since COVID, and they're still catching up. For your 2021 credit question - you're absolutely right about the April 2025 deadline. The three-year rule applies to when you FILE the amendment, not when they process it. So as long as you get that 2021 amendment postmarked before April 15, 2025, you'll be fine even if they don't process it until later. If it helps with the anxiety, I've been tracking my amendment status weekly and from what I've read in various tax forums, most people who mailed their 2022 amendments in late 2023/early 2024 are just now starting to see movement. The processing times have been consistently running 8-12 months for complex amendments. Hang in there - it sounds like you're right in the normal (albeit frustratingly long) timeline!
Thanks for sharing your experience! It's really reassuring to hear from someone else going through the same thing. The 8-12 month timeline you mentioned actually matches what I've been seeing in other forums too. I think the hardest part is just not knowing if your paperwork made it there safely when there's no confirmation for months. Your point about the April 2025 deadline being based on filing date rather than processing date is super helpful - I was getting confused about that. Definitely going to get that 2021 amendment in the mail soon just to be safe!
I've been through this exact situation twice now and wanted to share some hard-learned lessons. First, don't panic about the online system showing "no record" - that's completely normal and can last 3-4 months even after they receive your paperwork. The IRS processes amended returns in batches, and yours is likely sitting in a queue waiting for its turn. One thing that helped me was keeping detailed records of when I mailed it, what I included, and any correspondence. If you didn't send it certified mail this time, definitely do that for your 2021 amendment. The peace of mind is worth the extra cost. Regarding your 2021 credit - yes, you have until April 15, 2025 to file that amendment, and the postmark date is what matters. Even if processing takes until summer 2025, you'll still get your credit as long as you mail it before the deadline. I'd recommend filing it sooner rather than later though, since you'll want to get in the queue early. The waiting game is brutal, but from what I've seen, January 2024 filers are starting to see movement now. Your timing actually puts you in a decent spot compared to people who filed even later in 2024. Hang in there!
Jungleboo Soletrain
Was your CP12 notice accompanied by any other correspondence? Sometimes the IRS sends multiple notices simultaneously, and the CP12 could be related to another adjustment or review of your account.
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Nasira Ibanez
Hey Xan, I totally get the stress of dealing with IRS notices, especially after a divorce! The good news is that a CP12 is actually one of the less scary notices you can get. It just means they caught a math error or missed credit on your return and fixed it for you automatically. Since you mentioned filing as head of household this year, that's probably a change from your previous filing status due to your divorce. The IRS might have adjusted something related to that status change or dependent-related credits. My advice: Don't stress about calling unless you genuinely think their correction is wrong. Read through the notice carefully - it should show exactly what they changed and why. If the math looks right to you, just accept it and move on. You've got enough on your plate right now! If you do need to call, try early morning (7-8 AM) on Tuesday or Wednesday for shorter wait times. Good luck!
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