Thanks for bringing this up! I am actually already working as a CNA at a hospital that's helping with some tuition reimbursement once I start. Would that change anything about how I should be looking at these expenses? The hospital benefits coordinator mentioned something about "work-related education" but I wasn't sure what she meant.

That definitely opens up more possibilities! Since you're already working in healthcare as a CNA, some of your nursing education expenses might qualify as work-related education expenses if they maintain or improve skills needed in your current employment. The downside is that after the tax law changes in 2018, work-related education expenses are much harder to deduct for employees. However, your tuition reimbursement situation is really important to consider. If your employer is providing tuition assistance, up to $5,250 per year can be excluded from your income if it's part of a qualified educational assistance program. Any amount over that would be taxable unless it qualifies as a working condition fringe benefit.

Wow, that's actually really smart. I'm gonna try that with my dental hygiene program. Did you just talk to the regular financial aid office or did you have to reach someone specific?

Are municipal bonds still worth it though? The yield is typically lower than corporate bonds or dividend stocks because of the tax advantage. Wouldn't it make more sense to just keep total income under the standard deduction with higher-yielding investments?

It really depends on your total income needs. If you need more income than the standard deduction would shelter, then municipal bonds become valuable because that portion remains tax-free regardless. For someone who needs, say, $30,000 in annual income, they could take $14,600 from taxable sources (covered by the standard deduction) and the rest from municipal bonds, effectively paying zero federal tax on the full amount. If your income needs are below the standard deduction, then yes, higher-yielding taxable investments make more sense mathematically.

Good point! Some states also tax certain retirement income that's exempt at the federal level. My parents moved from New Jersey to Florida partly because NJ was taxing their pension while Florida has no state income tax.

Thanks for mentioning this! My tax software actually does have an e-file option for superseding returns, but it specifically says to expect a paper check for the refund rather than direct deposit. Do you know if that's always the case or just depends on the timing?

It depends on the timing and how the IRS processes your return. Some people do receive direct deposits for superseding returns, but paper checks are more common because the superseding return often triggers a manual review process. If your software allows e-filing for the superseding return, that's great! It will process faster than paper filing. Just make sure the software properly marks it as superseding (rather than amended) in the electronic submission. Expect your refund to take a bit longer than the standard 21 days - mine took about 5 weeks last year.

Is there any way to check the status of a superseding return? The Where's My Refund tool only seems to recognize my original return.

4 I always forget about accounting for deductions on the W-4! Do you just use last year's deduction total when filling it out or do you need to estimate the current year? And where exactly on the new W-4 do you put this info?

21 You'd use Step 4(b) on the new W-4 form to list deductions beyond the standard deduction. I typically start with last year's deductions and adjust if I know something significant will change. For example, if you normally take a standard deduction but will itemize this year due to a large medical expense or new mortgage, you'd calculate the difference between your expected itemized deductions and the standard deduction, then put that amount on line 4(b). Just be conservative with your estimates to avoid underwithholding penalties.

9 This is really good advice about adjusting for mid-year changes. When I updated my W-4 last June, I had to account for the over-withholding from January-May. The calculator on the IRS site actually helps with this - it asks when you're making the change and adjusts accordingly.

Thanks for pointing that out! It's a Traditional IRA, so I'll definitely need to plan for the tax impact of withdrawals. Do you have any suggestions for minimizing the tax hit over the 10-year period?

Since it's a Traditional IRA, you'll want to be strategic about your withdrawals. Consider taking larger distributions in years when you might have lower income from other sources, which could keep you in a lower tax bracket overall. If you have years where you expect higher income (bonuses, other investment gains, etc.), you might take smaller distributions or skip withdrawals entirely during those years. Many people also coordinate their withdrawals with charitable donations that can offset some of the tax impact. Just make sure you're on track to empty the account by the end of the 10-year period.

How would you even check if the RMD was taken for the year they died? The statements I got don't make this clear at all.