Thanks for bringing this up - I honestly wasn't sure if I should have been getting a W-2 or 1099. My job involves framing houses and doing general construction work. I use their tools, work on their schedule, and they tell me exactly what to do and how to do it. Does that sound more like an employee situation?

Based on what you've described, you sound much more like an employee than an independent contractor. The key factors the IRS looks at include: who controls when and how you work, who provides tools and equipment, how you're paid (regular wages vs. project-based), and whether the work is a key part of the business. Using their tools, working on their schedule, and having them direct your work are all strong indicators of employee status. Construction workers doing the core work of a construction company are typically employees unless there's a specific arrangement that gives the worker significant independence.

Did you run into any issues with the IRS after filing this way? I'm in a similar situation and worried they'll come after me for something that wasn't my fault.

Do digital textbooks and access codes count too? Almost all my "textbooks" are actually digital access codes that my professors require us to buy for online homework systems. Does the IRS consider those qualified expenses for the American Opportunity Credit?

Yes, digital textbooks and required access codes absolutely count as qualified education expenses! The IRS doesn't distinguish between physical and digital textbooks as long as they're required for your courses. Those online homework system access codes are specifically mentioned in IRS guidance as qualifying expenses when they're required for your coursework. Just make sure you keep digital receipts or confirmation emails showing your purchases. These expenses can significantly increase your credit amount when they're not included on your 1098-T.

Super helpful info about the income limits! Quick question though - does money received from foreign parents count toward that income limit? OP mentioned getting money from parents abroad, and I'm in a similar situation getting about $15K yearly from my parents in Korea plus my $12K campus job income.

Thank you for mentioning this. If I end up owing the full amount, a payment plan might be my only option. Do you know if they run a credit check or anything for these payment plans?

They don't run a credit check for standard payment plans. The IRS offers short-term plans (paying within 180 days) with no setup fee, or long-term plans with a small setup fee. For amounts under $10,000, it's usually automatic approval as long as you've filed all required tax returns. The current interest rate is around 7% annually, plus a small failure-to-pay penalty of 0.25% per month while you're on the plan. Still way better than ignoring it and getting hit with the full 0.5% monthly penalty plus potential collection actions.

This is really important advice. My parents almost fell for a scam last year that looked EXACTLY like a real IRS letter. The only thing that tipped me off was they wanted payment through Zelle.

The letter does have CP2000 in the corner and it doesn't ask for any weird payment methods, so I think it's legitimate. But thank you for the warning - I've heard about those scams too and they're getting super sophisticated.

This happened to me too! I was freaking out because the status was stuck on "return received" for weeks, then randomly checked my bank account and boom - full refund was there. The IRS tracking system can definitely lag behind the actual deposit.

Exactly! The IRS systems don't always communicate with each other in real-time. The processing department might release your refund while the status update for the tracking tool is queued in a different system. Another thing to check is whether you have any past-due federal or state debts. Things like unpaid student loans, child support, or state taxes can result in your refund being offset (reduced) or delayed. The Where's My Refund tool doesn't always show this information clearly.

I find the app actually updates faster than the website. Got my status on the app a full day before it showed up on the website version. Worth trying both!

This is really helpful, thank you. We've definitely kept records of school enrollment with our address and have receipts for most major expenses. Should we try to get some kind of statement from her father acknowledging the situation? I'm just worried about reopening communication since things were pretty hostile when she left.

I wouldn't recommend reaching out to her father if the relationship is hostile. That could make things worse. The documentation you already have with school enrollment and expense receipts is a good start. If you have any text messages or emails from around the time she moved in that reference the situation, save those too. If you're concerned about potential disputes, you might want to consult with a family law attorney about formalizing the guardianship more completely. This would help not just for taxes but for other legal matters too. Some communities have legal aid services that can help with this kind of paperwork at low or no cost.

Yeah, I had to go through this 2 years ago with my sister's kid. The IRS sent a letter asking for proof that he lived with me and that I provided support. I had to send in school records showing my address, medical bills I paid, and a written statement explaining the situation. Took about 2 months but they accepted my claim in the end. The key was having good documentation ready to go.