I'm in Maryland. And wow, that's exactly what I'm worried about! I do my own taxes with software but I'm not the most organized person. Did you have to provide actual payment records or did they eventually find the payment with the wrong SSN?

They eventually found the payment under the incorrect SSN, but it took about 3 weeks and I had to provide

THIS!!! I almost fell for something similar. The letter had all the right logos and everything. Called the actual department and they confirmed they hadn't sent anything. Scary how good these scams are getting.

That's a good point! I checked and it does seem legitimate - has all the official letterhead and the return address matches what's on their official website. I also logged into my state tax account and there's a notice there too mentioning documentation needed. But thanks for the warning - probably saved someone else from falling for a scam!

That's a great suggestion I hadn't thought of! Did you just call your representative's local office? Was there a specific person or department you asked for? I'm willing to try anything at this point.

Yes, I called my rep's local district office (not their DC office). Just ask to speak with the caseworker who handles IRS issues. Every congressional office has staff dedicated to constituent services. They'll email you a privacy release form that you need to sign and return, which gives them permission to inquire about your case. Make sure you provide them with copies of all the correspondence you've had with the IRS so far, including your notice numbers and any reference numbers. The magic happens because congressional inquiries go to a special unit at the IRS that is much more responsive than regular channels. They have to provide updates to congressional offices, so things suddenly start moving much faster.

I've used the online account system and while it's good for viewing your tax records and making payments, I found the document upload feature to be hit or miss. I uploaded documentation for an issue similar to OP's, and there was no confirmation that anyone had reviewed it or that it was attached to my case. I ended up having to mail in physical copies anyway after calling and finding out the uploaded documents weren't associated with my specific case/notice. The system needs a lot of improvement.

Thanks for sharing your experience. That's disappointing to hear. I was hoping the online system would be more efficient, but sounds like it has the same problems as mailing documents. Did you at least get some kind of upload confirmation when you submitted the documents, or was it completely unclear if they were received at all?

Oh that's really interesting and not something I had considered! My combined income won't be anywhere near that limit this year, but good to know for the future. Are there any other deductions that might work this way when you have multiple employers?

Medicare withholding is different - there's no wage base limit for the standard 1.45% Medicare tax, so that continues regardless of how much you earn. However, there is an Additional Medicare Tax of 0.9% that kicks in when your income exceeds $200,000, which can also be overwithheld with multiple employers since each employer starts withholding this when your wages with them exceed $200,000. State unemployment insurance contributions might also have wage bases that work similarly to Social Security, where you could have excess withholding with multiple employers. This varies by state though, so you'd need to check your specific state's rules.

I've heard about this but haven't tried it. Is it the same as creating an account on irs.gov? Is it easy to set up? I've had three W-2 jobs this year plus some freelance work and I'm worried about keeping track of everything.

Thanks for the suggestion. I actually checked the settlement website after I posted this and found a tiny section that mentioned "consult your tax advisor" 🙄 super helpful lol. But at least now I know I need to report part of it as taxable income even without a 1099.

Yeah, the "consult your tax advisor" line is their way of avoiding giving direct tax advice, super annoying! But at least you know what to do now. Keep all your settlement documentation just in case - the IRS probably won't care about a $750 payment but it's good to have backup if they ever question it.

How did you know which portion was punitive damages? My letter doesn't break it down that way.

Is the 1098-T required to claim the credit? My school is weird and doesn't always send them on time.

While the 1098-T is helpful documentation, it's not technically required to claim the Lifetime Learning Credit. If you don't receive one or it's incorrect, you can still claim the credit using your own records of qualified education expenses. Keep documentation like receipts, cancelled checks, credit card statements, and any official statements from your educational institution showing you paid qualified expenses. The burden is on you to prove eligibility if audited, so good record-keeping is important even without the 1098-T.

You can definitely claim both credits in the same tax year, but not for the same student. If you and your wife are both in school, you could potentially claim AOC for one person and LLC for the other, depending on eligibility. That's a great way to maximize education tax benefits on one return!