4 Do you have to file state taxes for every year too? I lived in 3 different states during my unfiled period and I'm not even sure how to track down state W2 information from 4-5 years ago.

11 Yes, you absolutely need to file state taxes for each year as well. State tax authorities share information with the IRS, so once you file federal returns, states will likely expect their returns too. For getting old state W2 information, start with the wage transcripts from the IRS - they show all reported W2 income. Then contact each state's tax department directly. Most have systems similar to the IRS where you can request old tax documents. Some states are more aggressive than others about unfiled returns, so definitely don't skip this step.

5 So true. I lost out on almost $1,800 from my 2017 return because I waited too long to file. Actually makes me sick thinking about it. The IRS keeps that money if you don't claim it within the window.

1 Thank you for mentioning the income limits! I forgot to include that in my original post, but thankfully I'm well under those thresholds as a grad student. My stipend and part-time work put me around $35,000 for the year, so I should be eligible for the full Lifetime Learning Credit amount. Do you know if qualified expenses for LLC include the same things as AOTC? Like textbooks, supplies, etc., or is it more limited?

5 The Lifetime Learning Credit is a bit more restrictive on qualified expenses compared to the AOTC. For the LLC, qualified expenses generally include tuition and fees required for enrollment. AOTC is more generous and explicitly includes course-related books, supplies, and equipment that aren't necessarily paid to the educational institution. For the LLC, these additional expenses typically only count if they're paid directly to the school as a condition of enrollment. So if you bought textbooks from the campus bookstore or Amazon, those would likely qualify under AOTC but not LLC. However, if your course fees include a required materials fee paid to the school, that would count for LLC.

22 Yes, you absolutely can claim different education credits for different eligible students in the same tax year. You could claim the Lifetime Learning Credit for your graduate expenses and the AOTC for your daughter's undergraduate expenses on the same tax return. Just make sure you fill out a separate Form 8863 for each student and credit. The main restriction is that you can't claim both credits for the same student in the same tax year.

Thanks for this info! So with my 05 code, I should expect an update this Thursday? And then potentially a refund the following Wednesday?

Yes, with your 05 code, the system typically updates on Thursday nights, and you would see the refund the following Wednesday if everything is approved without issues. The Wednesday deposit date is pretty consistent for 05 cycle codes, but occasionally it can vary by a day depending on your bank and how they process incoming ACH transfers. Some people see it pending on Tuesday night.

I have code 570 and 971 on mine along with the cycle code. Anyone know what those mean? Getting worried.

Does this mean I need to be extra careful with the unreported basis section when filing? Will the IRS flag my return if what I report differs from what the broker told me (but didn't tell the IRS)?

Yes, you should definitely be more careful with the unreported basis section. The IRS has no basis information to compare against what you report for those securities, so you need to make sure your numbers are accurate and you have documentation to back them up. This doesn't automatically mean you'll be flagged for audit, but if you get selected for other reasons, these transactions might receive extra scrutiny. The best practice is to keep all your original purchase confirmations, statements showing reinvested dividends, corporate action notices (splits, mergers, etc.), and transfer documentation. If your reported basis seems reasonable relative to the sale proceeds, it's unlikely to trigger issues on its own.

Wash sale rules apply equally to all securities regardless of whether the basis is reported to the IRS or not. The distinction is only about reporting requirements, not about how tax rules are applied. When you have numerous trades, it gets complicated because your broker might correctly identify wash sales within their platform, but they won't catch wash sales between different brokerages or accounts. That's why many active traders end up with discrepancies and have to make adjustments on their tax returns.

I use a fillable PDF that they can complete digitally. It's set up so they can't submit it if required questions are unanswered. I also color-code sections based on complexity - green for simple questions, yellow for ones that might need thought, and red for complex items we'll definitely discuss during our meeting. The pre-filled approach for returning clients has been the biggest time-saver. I just send last year's completed form and say "please review and note any changes for this year" - gets much better response rates than starting from scratch each time.

Do you have them complete it digitally or on paper?

We've incorporated key Schedule B items into our engagement letters for partnerships. We specifically include language about foreign activities, ownership, and listed transactions. It doesn't replace getting the specific answers, but it does create another layer of documentation and client awareness.