I went through this exact situation two years ago with my son who was living at home during his sophomore year. The key insight that saved me a lot of stress was realizing that the IRS doesn't require you to prove specific dollar-for-dollar expenses - you just need to stay within the school's published off-campus housing allowance and maintain reasonable documentation. What worked for me was creating a simple monthly tracking system. I kept a basic spreadsheet showing my son's proportional share of household costs (mortgage interest, utilities, groceries, internet) and made sure the annual total stayed well below his school's published room & board allowance of $11,200. I never had to create fake rental agreements or transfer money back and forth. The most important thing I learned: Get the school's official Cost of Attendance document and keep it with your 529 records. That document is your protection - as long as your withdrawals don't exceed the published off-campus allowance and your student is enrolled at least half-time, you're on solid ground. I've never been audited, but I feel confident that my simple documentation approach would hold up if questioned. One tip: I also kept screenshots of my son's student portal showing his enrollment status each semester, just to have that verification easily accessible. Much easier than requesting official transcripts later if needed.

This thread has been incredibly helpful! I'm dealing with a very similar situation where my daughter is living at home while attending college full-time. Reading through everyone's experiences has given me much more confidence about using our 529 funds for her living expenses. One thing I wanted to add that I learned from my tax preparer: if you're keeping detailed records of household expenses (which seems to be the consensus approach here), make sure to also document any unusual or increased costs that are directly related to having your student at home during college. For example, our electric bill went up noticeably when my daughter started taking online classes because she's home more often using her computer, charging devices, etc. I've also been keeping receipts for things like extra groceries when she brings friends over to study, or the upgrade to our internet plan that we needed for her coursework. These kinds of incremental costs that are clearly college-related can help justify your withdrawal amounts and show that supporting a college student at home really does involve additional expenses beyond normal household costs. The key insight from this discussion seems to be: stay within your school's published off-campus allowance, keep reasonable documentation, and don't overthink it. The IRS recognizes that housing costs are legitimate educational expenses even when the student lives at home with family.

Something else to consider is the potential impact on other benefits. When your WFH stipend is treated as taxable income, it increases your total wages, which can affect calculations for things like Social Security taxes, unemployment insurance, and even retirement plan contribution limits. On the positive side, if you have a 401(k) or similar retirement plan with employer matching, the higher reported income could mean you can contribute more to hit percentage-based limits. However, you'll also pay more in Social Security and Medicare taxes on that additional $2,400. If your company is open to restructuring this as an accountable plan, it's worth emphasizing to HR that this change would benefit the company too - they'd save on their portion of payroll taxes (Social Security, Medicare, unemployment insurance) on the stipend amounts. This creates a win-win situation where both employer and employees save money. I'd recommend calculating exactly how much extra you're paying in taxes on the stipend versus your actual home office expenses to present a compelling case to your HR department.

I went through this exact same situation last year and wanted to share some additional considerations that might help you navigate this with your employer. One thing that worked well for me was putting together a simple cost-benefit analysis to show HR. I calculated not just my personal tax impact, but also what the company was paying in additional payroll taxes on the stipend. When they saw that switching to an accountable plan would save them about $180 annually per employee just in their portion of FICA taxes (7.65% of $2,400), plus reduce their workers' comp and unemployment insurance costs, they were much more receptive to making changes. I also discovered that our payroll provider actually had templates for setting up accountable plans - many companies don't realize how straightforward the administrative side can be. We ended up with a simple quarterly submission process where employees submit receipts through our existing expense reporting system. The key was framing it as a business efficiency improvement rather than just an employee tax complaint. I emphasized how proper expense reimbursement would reduce administrative overhead for payroll processing and eliminate confusion about tax treatment for employees. If your HR team seems hesitant about making changes, you might suggest starting with a pilot program for a few employees to demonstrate how smoothly it works before rolling it out company-wide. Sometimes the fear of complexity is what prevents companies from making beneficial changes like this.

Anyone know if its different for people already on Medicare Part A (free from turning 65) but then later enroll in Part B? My husband has been on Part A for almost a year but still on my work insurance. Planning to put him on Part B when I retire next summer.

This is such a common confusion point! I went through something similar when my spouse started Medicare last year. One thing that helped me was creating a timeline showing exactly when each contribution was made versus the 6-month lookback period. For your situation with contributions continuing through September and the employer match in November, you'll definitely need to withdraw those as excess contributions. The key is to act quickly - contact your HSA administrator right away to request the withdrawal of any contributions made after July 1, 2024. Also, make sure to keep detailed records of all communications with your employer about stopping contributions. If they continued contributing after you requested them to stop, that documentation could be helpful if you need to demonstrate it wasn't intentional on your part. The IRS sometimes shows more leniency when employer errors are involved, though you'll still need to correct the excess contributions. Don't let this stress you out too much - it's fixable, and you have time to get it sorted before any major penalties kick in!

As someone who works in tax resolution, I can confirm that everyone here has given you excellent advice! The online payment process for CP14 notices really is much simpler than it appears at first glance, and you're absolutely making the right choice by going electronic rather than mailing a check. Just to reinforce the key points: select "Notice" (not "Tax Return") as your payment reason, make sure you choose 2023 as the tax year, and enter exactly $850. The Direct Pay option from your bank account is definitely your best bet - no fees and it processes quickly. One additional tip I'd add: if you have any other outstanding tax issues or unfiled returns, make sure to address those soon as well. The IRS is more likely to work with taxpayers who stay current on all their obligations. But for now, getting this CP14 paid online will stop the interest clock and give you peace of mind. You're doing the right thing by taking care of this promptly rather than letting it drag on. The online payment system has become very reliable over the years, and you'll have that confirmation number as proof that everything was handled properly.

I just want to echo what everyone else has said about paying your CP14 online - it really is the best option! I was in your exact situation about 6 months ago with a CP14 for around $900, and I was so intimidated by the IRS website that I almost just mailed a check. But after reading through similar advice, I went the electronic route and it was honestly much easier than I expected. The key is just knowing which buttons to click: go to irs.gov/payments, select "Pay Your Tax Bill," then choose "Notice" as the reason (this was the part that confused me initially), pick your tax year, and enter the exact amount from your CP14. I used Direct Pay from my checking account to avoid any fees, and the whole process took maybe 8 minutes. What really gave me confidence was getting that immediate confirmation number - I screenshot everything and kept it in a folder on my phone just in case. The best part was seeing my IRS online account update within 48 hours showing a zero balance. No more daily interest accumulating, no worrying about whether a mailed check got lost or delayed. For your $850 CP14, you're definitely making the smart choice by handling it electronically!

Great question! I went through this exact same confusion when I first started filing. The general rule is to use your permanent address - which sounds like your parents' home in your case. Even though your W-2 shows your dorm address, that's just where your employer sent the form, not necessarily your legal residence. Since you still live at your parents' during breaks and summer, and presumably they might still claim you as a dependent, their address would be your permanent address for tax purposes. This also ensures any IRS correspondence reaches you even after you graduate and move out of the dorms. One thing to double-check: make sure you're aware of any state tax implications if your college is in a different state than your parents' home. You might need to file in both states - one as a resident and one as a non-resident for the income you earned there. TurboTax should handle most of this pretty smoothly, but don't forget to look into education credits! The American Opportunity Tax Credit can be really valuable for students. Good luck with your first tax return!

Just to add another perspective - I'm a junior and have been filing my own taxes for a few years now. The permanent address rule that others mentioned is definitely correct, but I wanted to share something that might help with your decision-making process. If you're still claimed as a dependent by your parents (which is likely if they provide more than half your support), then using their address makes even more sense because it keeps your tax information consistent with theirs. The IRS sometimes cross-references dependent information, so having matching addresses can help avoid any confusion. Also, a practical tip for TurboTax - when you get to the personal information section, it will ask about your living situation and dependency status. Answer those questions honestly about living at college but considering your parents' home your permanent address, and it should guide you to use the right address automatically. One last thing - make sure whoever's address you use knows to expect potential IRS mail for you, especially if you're getting a refund. Nothing worse than missing important tax correspondence because it went to the wrong place!