Yes, I was full-time for all 3 years of undergrad. I actually took extra courses each semester to graduate early. And I did claim AOTC for all 3 years of my undergrad. My parents claimed it for my first 2 years when I was their dependent, and I claimed it myself last year for my final year when I filed as independent. That's why I'm wondering if I can use that "4th year" eligibility now.

Since you were full-time for all 3 years and AOTC was claimed for those years, you should have 1 year of eligibility remaining. The fact that your parents claimed it for 2 years and you claimed it for 1 year doesn't matter - it's based on the student's academic years, not who claimed the credit. The key requirement is that you haven't completed 4 years of post-secondary education before the beginning of the tax year. Since you've only completed 3, you should be eligible to claim it for your first year of grad school. Just make sure your grad program is at an eligible educational institution and that you're enrolled at least half-time in a degree program.

I claimed AOTC for my first semester of grad school after finishing undergrad in 3.5 years, and my return was not audited. I made sure to keep copies of my transcripts and documentation showing I had only completed 3.5 academic years before starting grad school. The key is having documentation ready if they ever question it.

Dude that's literally the opposite of punk rock. You're GIVING the government an interest-free loan of your money for a whole year! That's exactly what they want you to do! If you got that money in your paycheck instead, you could invest it all year and actually make money on it.

This is probably the best advice on here. I'll start reading up on the tax code and trying to understand it better. Any recommendations on where to start for someone who's pretty much a beginner with all this? Books, websites, etc?

For beginners, I'd avoid diving straight into the tax code itself - it's dense and will just frustrate you. Start with the IRS's own Tax Tips section on irs.gov - it's surprisingly readable. The Nolo Guide to Taxes is also good for beginners. For understanding concepts more deeply, I like the Tax Foundation's explainers. They break down complex topics without oversimplifying. Once you grasp the basics, The Wall Street Journal's Guide to Planning Your Financial Future has excellent tax chapters. J.K. Lasser's Your Income Tax is updated annually and is like a readable reference manual for practical applications. Just commit to learning consistently rather than cramming at tax time, and within a year you'll know more than 90% of taxpayers.

Thanks for this detailed breakdown! I didn't realize getting an EFIN was so involved. Do you know roughly how long the whole process takes from applying for a PTIN to getting approved for e-filing?

Getting a PTIN is pretty quick - usually just a few days if there are no issues with your application. The EFIN process is much longer. After you submit the application, get fingerprinted, and complete the background check, it typically takes 45-60 days for approval. So if you're thinking about offering this service for the upcoming tax season, you should start the application process immediately. And remember that you'll need to renew your PTIN annually, which means additional fees. The EFIN doesn't need annual renewal, but you do need to keep your information updated with the IRS.

This is misleading. An ERO still needs an EFIN from the IRS, which requires background checks and compliance with IRS e-file regulations. You can't just "become" an ERO without going through the proper channels. And for the PTIN holder, they're still taking on liability for returns they "sign" - most professionals won't do this unless they're properly compensated and have reviewed everything.

You're right, I should have been clearer. Yes, you still need an EFIN to be an ERO, which requires the background check and application process. What I was trying to say is that there are partnership arrangements where one person has the client relationship and another has the PTIN, working together to provide the service. It's definitely not a shortcut around IRS requirements - just a different business model. Thanks for the correction!

Is there a way to see how much I've contributed to Social Security so far in my lifetime? I'm curious what my eventual benefits might look like.

Yes, you can create an account at ssa.gov (the official Social Security Administration website) and access your Social Security Statement. This shows your lifetime earnings record, FICA contributions, and provides estimates of your future benefits based on your current earnings trajectory. It's actually really interesting to see how your benefits are calculated based on your contributions. The SSA uses your highest 35 years of earnings to calculate your benefit amount, so your early career earnings will factor into what you eventually receive in retirement.

Except that Social Security might be insolvent by the time we retire...isn't that what everyone says? I feel like we're paying for current retirees but won't get anything ourselves.

10 Does this apply even if the business didn't make any profit? My brother put me as a 10% owner in his LLC but they operated at a loss last year. Do I still need to file something?

22 Yes, you absolutely need to file even if the business operated at a loss. In fact, reporting business losses on your K-1 can potentially reduce your overall taxable income from other sources. When you receive a K-1 showing losses, those losses may be deductible against your other income (subject to certain limitations like passive activity rules and basis limitations). This could lower your overall tax burden. But regardless of profit or loss, you must report the K-1 information on your personal return because the IRS receives this information from the business entity and expects to see it reflected on your return.

8 Omg phantom income is the WORST! My husband and I got hit with a huge tax bill from his 30% ownership in an LLC that reinvested all the profits back into the business. We had to pay taxes on money we never actually received! 😡 Make sure you look at your operating agreement to see if it requires tax distributions to cover these situations.