Thanks for the tips! Do you know if my school's required materials list would be enough documentation for the computer purchase? My program handbook says students must have a laptop with certain minimum specifications.

Yes, a program handbook or syllabus that specifically states students must have a laptop with certain minimum specifications is excellent documentation. Save that documentation with your tax records. If your program has that kind of explicit requirement in writing, it significantly strengthens your case for counting the computer as a qualified education expense. Just make sure you're only claiming the portion of computer use dedicated to your education if you also use it for personal activities.

I learned this the hard way. Got audited in 2023 for my 2021 education credits while using Post-9/11. The IRS wanted documentation I didn't have anymore and I ended up having to pay back the credit plus interest. Now I scan and save EVERYTHING.

Thanks for bringing this up - I've never heard of an accountable plan before. I'll check with HR to see if we have something like this in place. That's a really good idea about getting a letter from my manager. Even if I can't deduct it now, having that documentation could be useful later on. I appreciate the advice!

This is actually solid advice. I did something similar at my old job - forced management to deal with the consequences of their own policies. They magically found budget for new equipment when client relationships were at stake.

Does the student claim this income on their own return or do the parents claim it if the student is still a dependent?

The student reports the taxable scholarship income on their own tax return, even if they're still your dependent. It's considered the student's income because they're the recipient of the scholarship. This can create a situation where your dependent student suddenly needs to file their own tax return, even if they don't have a job. In our case, my son had to file his own return for the taxable portion of his scholarship, while we still claimed him as a dependent on our return since we provided more than half his support.

Wait this is blowing my mind. My daughter's financial aid letter says "Dean's Scholarship" but now I'm wondering if it's actually a tuition discount. How can I tell the difference? Her 1098-T is confusing me.

This is half right, half wrong. The IRS account portal is different from the transcript service, but in my experience the Account section actually shows LESS document info than what's in the transcript, not more. The transcript will typically show all information returns including 1099-INT forms. The state tax portal advice is completely incorrect though. States don't have access to federal interest payment information in most cases. This is federal data that isn't typically shared with states in real time.

You're right that there's some overlap between the Account section and transcripts, but they actually do show different information in some cases. For certain years, I've seen information in one but not the other. Regarding the state portal, I should have been more specific - this only applies in certain states that have information sharing agreements with the IRS, and even then it's not universal. In my state (California), I was able to see my federal refund interest payment through the state portal last year, but this was probably because I had to report it on my state return as well. Definitely not a universal solution, but worth checking if other options don't work out.

You're right that the amount is the most important thing. Calling the IRS is definitely an option, but as others have mentioned, the wait times can be really long this time of year. I did take your suggestion to estimate the amount though! Based on my refund (around $4,500) and the delay (about 4 months), I calculated roughly $45 in interest. I'll still try to get the official form or amount, but at least now I have a reasonable estimate if I can't get the actual document before the filing deadline. Thanks for the practical suggestion!

That's a good point I hadn't considered! My husband makes ESPP purchases quarterly. If we sold some of the matched shares at a loss, would the next quarter's acquisition potentially trigger wash sale rules? Does it matter that some are directly purchased and some are matched shares, or does the IRS consider them all the same type of security?

Yes, the next quarter's acquisition could potentially trigger the wash sale rules if it happens within 30 days before or after selling at a loss. The IRS generally considers them the same security regardless of how they were acquired (purchased directly or received as matched shares). What makes this especially tricky with ESPPs is that the acquisition date for new shares is often predetermined by the plan structure, so you can't easily avoid the 30-day window like you might with discretionary investments. Some financial advisors recommend scheduling any loss-harvesting sales carefully around your ESPP purchase calendar to avoid this issue.

I used TurboTax last year and it didn't handle my ESPP correctly. The software just used whatever basis was reported on the 1099-B, which was wrong for my matched shares. I had to manually override it using the "Adjusted Basis" field and enter my own calculation. It was kind of a pain but worked once I figured it out.