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One thing nobody's mentioned yet - if you're working while in school, check if you qualify for the Earned Income Tax Credit. Even as a student with part-time income, you might be eligible if your income is below certain thresholds. Also, look into whether your state offers any additional education deductions or credits. Some states have their own education benefits that are separate from federal ones.
Can I get the Earned Income Credit if my parents still claim me as a dependent though? And how do I find out what my state offers for students specifically?
You generally can't claim the Earned Income Credit if someone can claim you as a dependent, so that would rule you out if your parents are claiming you. For state-specific education benefits, just search "[your state] education tax credits" or check your state's department of revenue website. Most states have a dedicated section for education-related tax benefits. Some states like Minnesota, Wisconsin, and New York have fairly generous education deductions or credits even beyond what's available federally.
Just FYI, I made a mistake my freshman year by not keeping receipts for my textbooks and required materials. Make sure you're saving ALL receipts for anything education-related, and get documentation from your department that the laptop and software were required for your program. That documentation can make a huge difference if there's ever a question about whether those were qualified education expenses!
This is true! I work at a university financial aid office, and we always tell students to keep all receipts and even emails/syllabus pages that show requirements. The IRS can be picky about what counts as a "required" educational expense vs. a personal preference.
Just to add another real-world example of how W-9s work: I run a small photography business and I collect W-9s from all my second shooters and assistants. I keep them on file, and anyone I pay $600+ during the year gets a 1099-NEC in January. The W-9 is super important because if someone refuses to give me one, I'm technically supposed to withhold 24% of their payment for backup withholding! Nobody wants that, so it's in everyone's best interest to just complete the form.
Quick question - if someone fills out the W-9 but doesn't check any of the business entity boxes and just puts their SSN, how do you know whether to issue a 1099-NEC or 1099-MISC? My lawn care guy gave me his W-9 but I'm confused about which form to use.
If they just put their SSN and don't check any business entity boxes, they're most likely an individual/sole proprietor (the first box on the form), and you would issue them a 1099-NEC for services they provided. The 1099-NEC is specifically for nonemployee compensation - basically paying someone for services when they're not your employee. The 1099-MISC is now used for other types of payments like rent, prizes and awards, medical payments, etc. - but not for services anymore. A few years ago the IRS split these forms, and service payments that used to go on the MISC now go on the NEC form.
Don't forget that just cuz you fill out a W-9 doesnt automatically make you a contractor! The IRS has specific rules about who can be classified as an independent contractor vs an employee. If your working situation looks more like employment (they control when/where/how you work), you might actually need to be classified as an employee with a W-4 instead of a W-9, even if the company wants to treat you as a contractor to avoid paying employment taxes.
I had a similar situation in 2020. One thing that helped me was contacting my local Taxpayer Advocate Service office. They can sometimes intervene when there are hardships involved (like your home purchase). You'll need to complete Form 911 to request their assistance. In my case, they were able to expedite the process somewhat - it still took about 4 months total, but that was better than the year I was initially quoted. Just search "Taxpayer Advocate Service" + your city to find the local office.
Thanks for suggesting this! I didn't know about the Taxpayer Advocate Service. Did you have to prove financial hardship, or is the identity theft itself enough reason for them to help?
The identity theft alone may not be enough - you need to demonstrate some kind of significant hardship. In your case, the home purchase being jeopardized should qualify. Make sure to include documentation about your pending home purchase and any deadlines you're facing when you submit Form 911. Include a copy of your purchase agreement or a letter from your lender explaining that the mortgage approval is contingent on resolving the tax situation. Be very specific about dates and financial consequences if your tax situation isn't resolved in time.
Has anyone tried contacting their congressional representative's office about IRS issues? My brother had an identity theft situation last year, and after months of no progress, he contacted our senator's office. They have staff specifically for helping constituents with federal agency problems. Within a few weeks of the senator's office inquiry, the IRS suddenly became much more responsive. Might be worth a shot if other approaches aren't working quickly enough.
I second this approach. I worked for a congressional office years ago, and constituent services for federal agencies (especially IRS issues) was a big part of our work. The IRS has liaisons specifically for congressional inquiries, and they can often move things along much faster than going through normal channels.
15 Don't forget about your state quarterly taxes too! Everyone's talking about federal, but depending on your state, you might need to make state estimated tax payments as well. I learned this the hard way last year with a surprise tax bill from my state.
2 Oh crap, I didn't even think about state taxes! Do they have the same deadlines as federal? And do all states require quarterly payments for freelancers?
15 Most states follow the federal quarterly tax deadlines, but not all of them. It really depends on where you live. Some states like Texas and Florida don't have income tax, so you wouldn't need to worry about state quarterly payments there. For states that do have income tax, you typically need to make quarterly payments if you expect to owe more than a certain amount for the year. The threshold varies by state - in California it's $500, in New York it's $300, etc. Your state's department of revenue website should have the specific requirements and forms.
4 Has anyone tried using TurboTax for quarterly payments? Their website says they can help calculate and pay quarterly taxes, but I'm not sure if it's worth the cost compared to just doing it directly through the IRS.
11 I used TurboTax Self-Employed last year. It does calculate your quarterly payments pretty well and reminds you of deadlines, but you still have to actually make the payments through the IRS systems. So you're basically paying TurboTax for the calculation service and reminders. Honestly, I switched to just using a free spreadsheet template I found online and setting calendar reminders. I save the TurboTax fee and just pay directly through IRS Direct Pay now.
Jean Claude
Quick tip for first-time 1040 filers: The IRS has a free guided filing system called Free File if your income is under $73,000. Much easier than trying to figure out the paper form yourself, and it automatically checks for student credits. I used to think doing taxes meant filling out paper forms by hand, but the electronic systems ask you simple questions and fill in the right lines on the 1040 for you. Saves tons of headaches!
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Charity Cohan
ā¢Does Free File include state tax returns too? Or do I need to pay extra for that part? My state doesn't have its own free filing system.
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Jean Claude
ā¢It depends on which Free File provider you select. Some include free state returns, others charge for them. When you go to the IRS Free File page, you can see which providers offer free state returns for your situation. I used TaxAct through Free File last year and got both federal and state for free. The IRS website has a tool that helps match you with the right provider based on your income, state, and other factors like being a student. Just make sure you start at the official IRS.gov website to get the truly free versions.
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Josef Tearle
dont stress too much about the 1040. i was overwhelmed too but honestly for most college students with just a W-2 it's super simple. the most important thing is dont miss the education credits!!!! they can be worth a lot of money. look for the american opportunity credit, it gave me like $2500 back last year!!!
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Marcus Marsh
ā¢What documents do I need to claim the education credit? Just my tuition statement from school? And does financial aid affect how much I can claim?
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