Just curious - does anyone know what the threshold is for when banks/credit unions have to send a 1099-INT? I have accounts at multiple banks and only got forms from some of them.

Just to add another perspective - if you're worried about making mistakes with tax forms like the 1099-INT, you might want to consider using a tax professional for this year, especially since it's your first time dealing with investment income. Many CPAs offer reasonably priced services for straightforward returns, and they can walk you through what to expect in future years. That said, if you're comfortable with TurboTax, it really does make adding 1099-INT information pretty foolproof. The software will ask you simple questions and guide you through entering the information exactly as it appears on the form. Just make sure you have the form handy when you're doing your taxes so you can enter all the numbers accurately.

I work in payroll and see this mistake ALL the time. The 2020 form change has created so much confusion. Your best bet is to contact whoever is handling the payments (likely HR or the benefits department) and explain that beneficiary payments should go on 1099-MISC Box 3, not 1099-NEC. Most companies actually want to get this right because incorrect filing causes problems for them too!

This is exactly the kind of frustrating situation that highlights how confusing the 2020 form changes have been! As others have mentioned, you're absolutely right to question this - beneficiary payments should NOT be on a 1099-NEC since you didn't perform any services. I'd recommend taking a two-pronged approach: First, contact the company's benefits or payroll department with a clear explanation that these are beneficiary payments from your father's retirement package, not contractor work. Reference IRS guidelines that beneficiary payments should be reported on 1099-MISC Box 3. Second, once you get the corrected forms, definitely file amended returns (Form 1040-X) for the years you incorrectly paid self-employment tax - that money should come back to you. Document everything in writing when you contact the company. Many payroll departments are still figuring out the post-2020 form requirements, so being clear and specific about the nature of the payments will help them get it right going forward.

Just went through this exact situation for my 2023 return! One thing I learned that wasn't mentioned yet - if you're a graduate student, be extra careful because graduate assistantships are treated differently than undergraduate Pell Grants. Also, don't forget about the Lifetime Learning Credit as an alternative if you don't qualify for the American Opportunity Credit. I used the IRS Interactive Tax Assistant tool that @Yuki mentioned and it was really helpful for walking through the qualified vs non-qualified expense allocation. Pro tip: save screenshots of your calculations and keep copies of your school's itemized billing statements - they're much more detailed than the 1098-T and show exactly what charges the grants were applied to.

Thanks for all the detailed responses! This is incredibly helpful as a first-time filer dealing with educational expenses. I have a follow-up question about timing - my school disbursed my Pell Grant in August 2023 for the fall semester, but I also had spring 2024 expenses that were paid in January 2024. Should I only consider the expenses that were actually paid in 2023 for my 2023 tax return, or can I allocate my 2023 Pell Grant toward spring semester expenses that were billed in 2023 but paid in 2024? The 1098-T shows payments made during the tax year, but I'm not sure how to handle the timing mismatch between when grants were received versus when expenses were actually paid. Has anyone dealt with this cross-year situation?

Does anyone know how you're supposed to show on your tax return that a 1099-K isn't for taxable income? Like if I got a 1099-K from PayPal for $900 in cash back from Rakuten but I don't put it on my return anywhere, won't that trigger a mismatch that could get me audited?

I went through this exact same situation last year and can confirm what others have said. The key thing to understand is that the 1099-K is just a reporting mechanism - it doesn't determine what's actually taxable. For your Rakuten and TopCashback earnings, since these were cash back on personal purchases, they're considered purchase rebates/discounts, not taxable income. Think of it like getting a coupon discount - you wouldn't pay taxes on money you saved with a coupon, and cash back works the same way. I kept a simple spreadsheet showing my original purchase amounts and the corresponding cash back received to demonstrate the connection between the two. My tax preparer said this was good documentation in case of any IRS questions. The frustrating part is that PayPal has to issue these forms because they're just reporting money that flowed through their platform - they can't determine the tax nature of each transaction. So you'll get a 1099-K even for non-taxable rebates. Bottom line: Don't stress about it. Your $240 + $175 in cash back from shopping portals on personal purchases isn't taxable income, regardless of the 1099-K forms you received.

Just wanted to add my perspective as someone who dealt with a similar laptop emergency during my MBA program. When my computer died during a critical group project phase, I had to make a quick purchase from a local computer repair shop that mainly dealt in refurbished equipment. The IRS agent I eventually spoke with (after many attempts to get through) emphasized that the key factor isn't WHERE you buy the computer or whether it's new/used, but whether you can demonstrate it was genuinely required for your coursework. In your case, having an online class that's degree-required creates a clear educational necessity. One practical tip: if you still have access to your course platform or LMS (Learning Management System), try to screenshot any system requirements or technical specifications that were posted for the online class. Many instructors post minimum computer specs needed for video conferencing, software, etc. This helps establish that you needed a functioning computer meeting certain capabilities. Also, don't overthink the documentation issue. Your Facebook Marketplace conversation probably shows more context than you realize - things like you mentioning it's for school, asking about the laptop's condition for schoolwork, etc. The IRS understands that students sometimes need to make emergency purchases outside traditional retail channels, especially when time-sensitive coursework is involved. The scholarship situation definitely complicates the education credit calculation, but as others have mentioned, it doesn't automatically disqualify you. Just make sure you understand which credit you're eligible for based on your degree level and years of previous claims.

I just want to echo what others have said about the legitimacy of claiming your laptop purchase - you're absolutely on solid ground here! The fact that it was purchased second-hand through Facebook Marketplace doesn't diminish its validity as a qualified educational expense at all. One thing I haven't seen mentioned yet is that you should also consider whether your program requires specific software that needed to run on the new laptop. If you had to purchase or install educational software, productivity suites, or specialized programs for your coursework, those could potentially be additional qualified expenses worth documenting. Regarding your scholarship situation, it's worth noting that even though your 1098-T shows zero qualified expenses, the IRS allows you to claim expenses that aren't reported to the school directly. Your laptop falls squarely into this category. The key is maintaining good records (which it sounds like you have) and being able to demonstrate the educational necessity. I'd definitely recommend keeping a simple written statement about why you needed the laptop replacement - something like "Laptop required for [Course Name] online participation and assignments, previous laptop failed February 2025, purchased replacement to continue coursework." Sometimes the simplest documentation is the most effective. Don't let the complexity of education credit calculations discourage you from claiming legitimate expenses. Even if the benefit seems modest, you're entitled to it if you meet the requirements!