Thanks for that reminder! How much interest did they pay you, if you don't mind me asking? Mine was only $18.42 for a refund that was delayed about 4 months. I wonder if it's even worth reporting such a small amount?

Mine was only $32.16 for a refund delayed about 6 months, but yes, you absolutely should report even small amounts like $18.42! The IRS computer systems automatically match all 1099-INTs against your return, regardless of amount. There's technically no minimum threshold for reporting interest income. Even though it seems insignificant, the IRS notice I received for forgetting to include it cost me far more in penalties and interest than the original amount. Plus, dealing with IRS notices is a huge headache that's definitely not worth risking over a small amount.

It's taxed exactly the same as any other interest income (like from a bank account). It will be taxed at your ordinary income tax rate - not at capital gains rates. So if you're in the 22% tax bracket, you'll pay 22% on that interest. Just report it on Schedule B along with any other interest income you received during the year.

Thanks for this info! I had no idea the IRS could help with missing W2s or that employers had a deadline for sending them. My company is definitely past that February 15th deadline now so maybe that's why they're being so slow about it. I'll definitely try calling that number. Do you know if there's a way to check online whether my employer has already submitted my W2 info to the IRS? That would save me time on the phone if I could see it's already in their system.

Unfortunately there isn't an online way to check if your specific W2 has been filed with the IRS yet. The only way to get that information is by calling them directly. One thing you might try though is creating an account on the IRS website (if you don't already have one) at irs.gov/account. While it won't show your current year W2 info before you file, it will at least give you access to request a wage and income transcript from previous years, which can be helpful for reference.

This is the most important advice in the thread honestly. The extension is ONLY for filing paperwork, not for paying what you owe! I think a lot of people don't realize this.

Is there a limit to how much you can claim for books and supplies? My program requires special software that cost $300 but isn't technically a "textbook.

There's no specific limit for books and supplies - they're just part of your qualified education expenses. That $300 software absolutely counts if it was required for your courses! You can claim it as part of your qualified education expenses as long as it was required for enrollment or attendance in your courses. The key is that the expenses need to be required for your courses. You'll want to keep receipts and maybe even a course syllabus showing it was required in case of an audit.

I second this recommendation. TurboTax kept giving me an "error" when entering my daughter's college expenses but wouldn't explain what was wrong. Switched to FreeTaxUSA and it worked perfectly, plus saved me the ridiculous TurboTax fees.

So if box 5 shows $42,500 and box 1 shows $58,300, does that mean my earnings were $15,800? And none of that is taxable as long as I properly indicate it as a rollover when filing?

Yes, that's correct. The difference of $15,800 would represent your earnings in this example. None of it should be taxable as long as you properly report it as a rollover on your tax return. Just make sure that when entering the 1099-R information into your tax software, you indicate it was a direct rollover (which the code G confirms). The software should then handle it correctly as a non-taxable event. The important thing is to still report the 1099-R even though it doesn't create a tax liability.

I used FreeTaxUSA last year for a similar situation. When you enter the 1099-R information, there should be a question specifically asking if this was a rollover. Make sure to select "Yes" for that question. It's somewhere in the middle of the form entry process, after you enter the distribution code.

Wait, I thought the special rule for charitable donations when taking the standard deduction expired after 2021? Is that still available for 2023?

You're absolutely right, and I apologize for my error. The special provision that allowed taxpayers to deduct charitable contributions while taking the standard deduction was temporary and has expired. For 2023, you would need to itemize deductions on Schedule A to claim charitable contributions. Thanks for the correction - it's important to have accurate information when making these last-minute tax decisions!

Good point! Most online platforms have a dropdown or option to select which tax year the contribution is for, but it's easy to miss. I always take a screenshot of the confirmation page showing the tax year just to be safe.

That's a smart approach with the screenshot! I've started doing something similar. When I make my contribution now, I actually call my financial institution afterward to verbally confirm they've recorded it for the correct tax year, then note the date, time and representative's name. It takes an extra few minutes but saves potential headaches later.