Everyone's talking about the education credits but nobody's mentioned the tuition and fees deduction! It's another option that might be better depending on your parents' tax situation.

Hey Daniel! I went through this exact same situation last year when I was 20 and still claimed as a dependent. The key thing is coordination with your parents - you absolutely should NOT claim your 1098-T if they're claiming you as a dependent, but you also need to make sure they actually have the form and know to use it. What I did was give my parents a copy of my 1098-T along with a summary of what I paid versus what they paid for my education expenses. This helped them figure out which education credit to claim and avoid any issues. Also, double-check that they're actually planning to claim you as a dependent - sometimes there are situations where it might be better for the family overall if they don't claim you and you file independently instead. The good news is that if you just have W-2 income and you're not claiming education credits, your return should be pretty straightforward to file. Just don't rush into filing before talking to your parents about the 1098-T situation!

5 Has anyone addressed whether this could be an intentional income-shifting strategy by the mom? I've seen small business owners do this to reduce their own tax liability by "paying" family members. The IRS is aware of this practice and does scrutinize family business arrangements. If the child isn't actually performing meaningful work worth $6,300, or if they're not being paid market rates for the work, this could be problematic in an audit.

You're absolutely right to be concerned about this situation. As several others have mentioned, the $400 threshold for self-employment income is key here - your daughter definitely needs to file. However, I'd strongly recommend getting professional help before proceeding. The classification of a 12-year-old as an independent contractor is highly questionable and could trigger an audit. The IRS looks closely at family business arrangements, especially when children are involved. A few red flags I see: 1) A 12-year-old typically can't meet the "independence" test for contractor status, 2) The amount seems high for basic filing/sorting work by a child, and 3) This could be viewed as income shifting to avoid taxes. I'd suggest consulting with a tax professional who can review whether this should have been handled differently (like employee wages with FICA exemptions for children in family businesses) and help you navigate the filing requirements properly. The goal should be compliance, not just getting through this year's filing.

Another quick tip - if you're filling out multiple W9s for different clients, make sure you're consistent with how you write your name and business info across all of them. I learned this the hard way when one client's 1099 didn't match my tax return because I abbreviated my middle name on one W9 but wrote it out fully on others. Created a headache during tax season that could have been easily avoided! Also, keep copies of all the W9s you submit. It helps when you're doing your taxes and need to cross-reference with the 1099s you receive.

Pro tip from someone who's been filing W9s for years: I actually keep a master document with all my standard info (full legal name exactly as it appears on tax returns, SSN, address, etc.) that I copy from every time I need to fill out a new W9. This ensures I'm always consistent across all forms. I also take a photo or screenshot of each completed W9 before submitting it - way easier than keeping track of physical copies. When tax season comes around, I have a folder on my phone with all my W9s that I can reference when the 1099s start arriving. One more thing - if you ever move or change your name legally, make sure to update ALL your clients with new W9s. Otherwise you'll get 1099s with your old info that won't match your current tax return. Learned that one the hard way too!

I'm dealing with a very similar situation on my W-2 this year! Reading through all these responses has been incredibly helpful. I have duplicate entries in box 18 (same amounts) but different amounts in box 19, just like the original poster. What I found most useful was the explanation about local tax rate changes mid-year - I never realized that's why this happens. I'm going to follow the advice here: add the box 19 amounts together for total local tax withheld, and only report the box 18 amount once since mine are identical. I'm also planning to call my HR department tomorrow to confirm why I have the duplicate entries, just so I understand what happened during the year. It's reassuring to know this isn't some kind of error that's going to get me in trouble with the IRS! Thanks everyone for such detailed explanations. This community is so helpful for navigating confusing tax situations like this.

This thread has been incredibly educational! I work in payroll processing and see employers struggle with how to properly report local tax situations like this all the time. You all have given excellent advice about adding the Box 19 amounts and reporting Box 18 once when the wages are identical. I wanted to add one more perspective - if anyone encounters this situation in the future, it's worth noting that some payroll systems automatically generate these dual entries when there's a mid-year rate change, while others require manual intervention. This is why some employees see this pattern while others in the same company might not, depending on when they were hired or if they had any payroll adjustments during the year. Also, for those mentioning different tax software handling this differently - you're absolutely right! Some software is better at recognizing these patterns than others. If your tax prep software seems confused by multiple local tax entries, don't hesitate to contact their support team. They deal with these situations regularly and can walk you through the proper entry method for their specific system. The key takeaway for anyone facing this: it's normal, it's not an error (usually), and the math is straightforward once you understand what's happening!

This whole thread has been incredibly eye-opening! I'm dealing with my own ID.me suspension right now and honestly felt hopeless until I found this discussion. The systematic approach everyone's outlined here - starting with early morning calls, then escalating through TIGTA, CFPB, and even congressional offices - gives me a real roadmap instead of just randomly trying things. I had no idea about the Treasury Inspector General route or that they have direct connections to ID.me's government services team. That seems like it could be a game changer. Also really appreciate the practical tips like documenting everything, using certified mail for Form 4506-T, and downloading backup transcripts once you regain access. It's ridiculous that we need this many workarounds just to access our own tax information, but at least there are options. Going to start with the phone strategy tomorrow and work my way through the escalation ladder if needed. Thanks everyone for sharing your real experiences - this is exactly the kind of community support that makes a difference!

Wow, this thread is absolutely packed with amazing solutions! I'm currently dealing with my own ID.me suspension and honestly didn't know half of these options existed. The fact that there's a Treasury Inspector General route specifically for tax-related service complaints is incredible - that seems like the most direct path to actually getting results since they have leverage with ID.me's government services team. I'm also impressed by how many different backup options everyone has shared - from AARP Tax-Aide to local library partnerships during tax season. It's honestly frustrating that accessing our own tax records has become this complicated, but seeing all these real solutions from people who've actually been through this gives me hope. Planning to try the early morning call strategy first, then escalate through TIGTA if that doesn't work. Thanks to everyone who took the time to share their experiences and specific contact info - this is exactly the kind of community support that makes a real difference when you're stuck in bureaucratic limbo!