One thing that might help clarify the filing requirement: the IRS uses different thresholds for dependents versus independent filers. Since your son is likely claimed as your dependent, his filing requirement is actually lower than the standard deduction amount. For 2024 tax year, a dependent must file if they have unearned income (like taxable scholarships) over $1,300, OR earned income over $14,600, OR gross income over the larger of $1,300 or earned income plus $400. So with $3,200 in excess scholarship income, he would need to file regardless of the withholding situation. The good news is that even though he has a filing requirement, his tax liability would still be zero since his total income is under the standard deduction. And as others mentioned, he'll get that $850 withholding refunded! This is a really common misconception - many parents think the standard deduction amount applies to filing requirements for dependents, but it's actually much more complex than that.

This thread has been incredibly helpful! I'm dealing with a similar situation with my daughter who has both merit scholarships and a small work-study income. After reading through all these responses, I now understand that the dependent filing thresholds are much more complex than I initially thought. The clarification about the $1,300 unearned income threshold for dependents was particularly eye-opening - I had been under the impression that as long as total income was below the standard deduction, no filing was required. It sounds like many families probably make this same mistake. I'm definitely going to look into some of the resources mentioned here, especially for getting clear guidance on how to properly report the different types of income. The coordination between parent and dependent returns for education credits versus taxable scholarship income seems like another area where it's easy to make errors if you're not careful. Thanks to everyone who shared their experiences and knowledge - this is exactly the kind of practical advice that's hard to find in IRS publications!

Great question about charity event taxation! I organized a similar fundraiser last year and learned a lot through the process. One key thing to remember is that you'll want to work directly with the animal shelter from the beginning - having them officially endorse or co-sponsor the event can simplify things significantly. Many established nonprofits have experience with third-party fundraisers and can provide guidance on proper documentation. Also, make sure to separate your personal expenses from event expenses in your record-keeping. If you pay for things like flyers, registration materials, or other event costs out of pocket, those are generally not tax-deductible for you personally, even though you're doing it for charity. Consider setting up a separate bank account just for the event funds - it makes tracking much cleaner and provides a clear paper trail if you ever need to document where every dollar went. This also helps establish that you're acting as a conduit rather than receiving personal income. The $8,000 amount you mentioned definitely puts you in territory where proper documentation becomes really important, so don't cut corners on the record-keeping!

One thing I'd add that hasn't been mentioned yet - make sure you understand the difference between "fundraising" and "soliciting charitable contributions" in your state. Some states have different rules if you're organizing an event where people get something in return (like playing golf) versus asking for straight donations. For a golf tournament, since participants are paying for an experience and you're donating the proceeds, this often falls under different regulations than direct charitable solicitation. However, the tax treatment can still be complex because participants might want to deduct part of their fee. I'd strongly recommend reaching out to the animal shelter early in your planning process - many established nonprofits have standard procedures for third-party fundraisers and may require you to fill out paperwork or agree to certain conditions before they'll accept proceeds from your event. Some even provide fundraising toolkits that include proper documentation templates. Also, don't forget about sales tax implications if your state charges tax on event registrations or if you're selling items like raffle tickets. The rules vary widely by state, and it's another area where good record-keeping becomes essential. The $8,000 goal is definitely achievable for a well-organized golf tournament, but make sure you have all your legal and tax ducks in a row before you start collecting money!

Totally off topic but make sure your dad isn't paying interest on the loan while you make payments to him. My father in law did this with my sister in law and didn't realize he was essentially paying interest on her behalf which created a whole other tax issue as an imputed gift. They had to rework the whole payment structure.

Great question! I went through something very similar with my mom last year. One thing that really helped was getting clarity on whether this counts as a sale at fair market value or if there's any gift component. Since you're paying the full $28,500 ($15,000 + $13,500), this should be treated as a legitimate sale between family members rather than a gift, which simplifies things considerably. You generally won't owe income tax on receiving the car, but you'll want to check your state's sales tax rules - some states exempt family transfers while others don't. The key is documentation. Make sure you have a written agreement showing this is a purchase with a payment plan, not a gift. Keep records of all your payments to your dad. When you finally get the title transferred, you'll use this documentation at the DMV. Also, double-check that the $28,500 total you're paying is close to the car's fair market value. If you're paying significantly less than what the car is actually worth, the IRS might consider the difference a gift from your dad. Your dad shouldn't have any tax implications on his end since he's just selling a personal vehicle (assuming he's not making a profit over what he originally paid).

Regarding your question about deducting the double sales tax - unfortunately, you generally can't claim the "extra" sales tax as a deduction or loss. The IRS views each transaction separately: you pay sales tax when you receive the car, and your buyer pays sales tax when they purchase it from you. Neither transaction is considered a "loss" in the tax sense. However, there are a few nuances worth knowing: If you sell the car for less than its fair market value (the amount you're taxed on as prize income), you generally can't claim that difference as a loss since it started as a prize rather than an investment. The sales tax you pay becomes part of your "basis" in the vehicle, but since prizes start with a zero basis for tax purposes, this doesn't usually help. One potential silver lining - if you're itemizing deductions, you can deduct the sales tax you pay as part of your state and local tax (SALT) deduction, though this is capped at $10,000 total for all state and local taxes combined. Your approach of negotiating with your buyer to split the tax burden is smart! Many buyers don't realize this double taxation issue exists, so educating them about the situation often leads to a more equitable arrangement. Since you mentioned signing preliminary paperwork, I'd still encourage you to call both the charity and your state revenue office. Sometimes what seems like "final" paperwork isn't actually binding for prize transfer purposes. You might still have options depending on your state's specific rules and timing requirements.

Great question about the basis and capital gains implications! You're absolutely right - since prizes start with zero basis for tax purposes, if you sell the car for MORE than its fair market value, you'd owe capital gains tax on the entire sale amount, not just the excess above FMV. For example, if the car's FMV is $32,000 (which you pay income tax on) and you sell it for $35,000, you'd owe capital gains tax on the full $35,000 sale price. This is different from other assets where your basis would reduce the taxable gain. Regarding the paperwork question - look for language about "accepting," "claiming," or "taking possession of" the prize. Simple acknowledgment forms that just confirm your identity or contact information usually don't lock you in. But documents that say you're accepting the prize or requesting title transfer typically do. Key phrases that might indicate you're still in the clear: "preliminary winner notification," "eligibility verification," or "prize claim process." If you see "prize acceptance" or "title transfer request," you may have fewer options. The good news is that many charities use multi-step processes specifically to allow for situations like yours. I'd definitely recommend calling them - explain that you want to explore a direct transfer option and ask if your current paperwork prevents that. Many organizations are willing to work with winners on these arrangements, especially when it simplifies their administrative process too. Even if you've signed some forms, the key question is whether the charity has already initiated the title transfer process with the DMV. If not, you likely still have options.

My employer uses ADP and I was able to download a PDF version that was accepted everywhere. Check if your company's portal has a download or print to PDF option instead of taking a photo of the screen. Much cleaner!

Great to see you found the PDF option! That's definitely the best approach when available. For anyone else reading this thread, here's the hierarchy of what works best for tax filing: 1. **PDF download from employer portal** (cleanest, most professional) 2. **High-quality scan using a scanning app** (Adobe Scan, Microsoft Office Lens, etc.) 3. **Clear photo with good lighting** (make sure all numbers are legible) One more tip - regardless of which method you use, always double-check the key numbers (wages in Box 1, federal withholding in Box 2, Social Security wages in Box 3, etc.) before submitting your return. A simple transcription error can delay your refund or trigger correspondence from the IRS. Good luck with your filing, and hopefully you get that refund quickly!