Great question! I went through this exact same confusion when I first started filing. The general rule is to use your permanent address - which sounds like your parents' home in your case. Even though your W-2 shows your dorm address, that's just where your employer sent the form, not necessarily your legal residence. Since you still live at your parents' during breaks and summer, and presumably they might still claim you as a dependent, their address would be your permanent address for tax purposes. This also ensures any IRS correspondence reaches you even after you graduate and move out of the dorms. One thing to double-check: make sure you're aware of any state tax implications if your college is in a different state than your parents' home. You might need to file in both states - one as a resident and one as a non-resident for the income you earned there. TurboTax should handle most of this pretty smoothly, but don't forget to look into education credits! The American Opportunity Tax Credit can be really valuable for students. Good luck with your first tax return!

Just to add another perspective - I'm a junior and have been filing my own taxes for a few years now. The permanent address rule that others mentioned is definitely correct, but I wanted to share something that might help with your decision-making process. If you're still claimed as a dependent by your parents (which is likely if they provide more than half your support), then using their address makes even more sense because it keeps your tax information consistent with theirs. The IRS sometimes cross-references dependent information, so having matching addresses can help avoid any confusion. Also, a practical tip for TurboTax - when you get to the personal information section, it will ask about your living situation and dependency status. Answer those questions honestly about living at college but considering your parents' home your permanent address, and it should guide you to use the right address automatically. One last thing - make sure whoever's address you use knows to expect potential IRS mail for you, especially if you're getting a refund. Nothing worse than missing important tax correspondence because it went to the wrong place!

I'm going through the exact same situation! Just noticed a 291 code on my transcript this morning and I'm feeling that familiar mix of confusion and anxiety that comes with IRS codes. This is also my first year working remotely and claiming the home office deduction - seems like there are quite a few of us in the same boat! Reading through all these responses has been incredibly reassuring. @Grace Durand - thank you so much for calling the taxpayer advocate service and sharing those details about the verification process for first-time home office claims. That explanation makes so much more sense than the scary scenarios I was imagining in my head. Like many others here, I was super conservative with my calculations because I was terrified of making a mistake. I measured my office space three times, kept detailed expense records, and probably undersold myself on legitimate deductions. Now I'm actually hoping the IRS review might catch something I missed and work in my favor! The community support in this thread has been amazing. It's so helpful to know that most 291 adjustments are routine corrections under $500 and that the explanation notices are coming within 2 weeks or so. I'm going to try to be patient and not check my mailbox obsessively (easier said than done!). For anyone else dealing with this - we're definitely not alone in navigating the remote work tax learning curve. Fingers crossed we all get positive news when those notices arrive!

I'm in exactly the same situation! Got the 291 code on my transcript a few days ago and have been stressing about it ever since. This is my first year working remotely and I claimed the home office deduction for the first time - seems like that's a common thread among many of us here. Reading through everyone's experiences has been such a relief. @Grace Durand - your explanation about the verification process for first-time home office deductions really helped me understand what's probably happening. I was imagining all sorts of worst-case scenarios when it's likely just a routine review. Like others have mentioned, I was probably too conservative with my calculations because I was so worried about making a mistake. I triple-checked my measurements and kept every single receipt, but I'm wondering now if I actually claimed less than I was entitled to. The timeline everyone's sharing about getting explanation notices within 10-14 days is really helpful too. I'll try to be patient instead of panicking every time I check the mail and don't see anything yet. This community has been amazing for helping us remote work newbies navigate this confusing process - thank you all for sharing your experiences and keeping the rest of us sane while we wait for answers!

Hey! I'm completely new to this community but had to join after getting this exact same "Audit Status Unavailable" error message this morning and nearly having a panic attack! 😅 I was convinced I was about to get audited or that I'd somehow messed up my tax return. Reading through everyone's experiences here has been such a huge relief - it's amazing how many people have dealt with this same scary-sounding error message! Really appreciate Dylan Cooper's explanation about it being backend system updates - hearing from an actual IRS tech specialist makes all the difference. And thank you to everyone like Yara Khalil who shared that they've seen this error multiple times over the years without it ever being an actual audit. I was literally about to start calling tax preparers in a panic! It's honestly ridiculous how that error message is worded - saying "Audit Status Unavailable" when it's just routine maintenance is so unnecessarily terrifying. They should really just say "Service temporarily unavailable due to system updates" instead of throwing around audit terminology and scaring everyone! Going to follow the advice here and wait a few days before checking again. This community seems incredible for getting real answers from people who actually understand how the IRS works. Thanks for saving me from what would have been several sleepless nights! 🙏

Just wanted to jump in as another newcomer who literally experienced this exact same terrifying situation! I'm brand new to this community and created my account specifically because I got the "Audit Status Unavailable" error message earlier today and was absolutely convinced I was about to get audited 😰 Reading through everyone's experiences here has been such a massive relief - it's incredible how many of us have gone through this same panic! Special thanks to Dylan Cooper for explaining it's just backend system maintenance from a technical perspective, and to Yara Khalil for sharing that they've seen this error 6-7 times over the years without it ever being a real audit. I was literally googling "IRS audit procedures" and preparing for the worst! It's honestly insane how poorly that error message is worded - mentioning "audit status" when it's just routine system updates is so unnecessarily scary. They really should just say "service temporarily unavailable due to maintenance" instead of using audit terminology that sends everyone into a panic! Going to follow everyone's advice and wait a few days before checking again. This community seems amazing for getting real answers from people who actually understand how the IRS works. Thanks for saving me from what would have been several sleepless nights! 🙏

Quick question for anyone who's done this - if I'm converting my garage to a home office for my 1099 work, can I still claim the deduction if I occasionally use the space for emergency overflow guest parking during holidays? Or does that violate the "exclusive use" requirement?

As someone who went through a similar conversion last year, I'd strongly recommend getting a consultation with a tax professional before you start construction. While the general advice here is solid, your situation as a physician doing telehealth work might have some unique considerations. For instance, if you're seeing patients virtually, there could be HIPAA compliance requirements that affect your office setup - like soundproofing or secure internet connections. These compliance-related expenses might be handled differently for tax purposes than standard construction costs. Also, since you mentioned multiple income streams, make sure you're allocating the office expenses correctly. If you use the space for any of your other work (like administrative tasks for your hospital or clinic positions), the deduction calculation becomes more complex. One thing I wish I'd known earlier: keep a detailed business use log from day one, even before construction is complete. Document every telehealth appointment, business call, or professional task you do in that space. The IRS loves contemporaneous records, and this will be invaluable if you ever face scrutiny. The 39-year depreciation mentioned earlier is accurate, but don't overlook potential immediate deductions for things like office furniture, computer equipment, and certain technology upgrades that might be specific to your medical practice.

Hey Danielle! I totally get the confusion - when I started my first job out of college, all the tax stuff felt overwhelming too. The good news is that "Discretionary Supplemental Income BNS" is just fancy corporate speak for bonus payments that your company can choose to give out at their discretion. Here's what you need to know: Yes, it gets taxed differently in terms of withholding (usually 22% federal plus FICA and state), but when you actually file your taxes, it's just regular income added to your total for the year. So it won't magically push you into a higher bracket unless the total amount actually does bump you up. My advice? Don't stress too much about asking HR questions - they're there to help! But also, when you get your first bonus payment, definitely look at your paystub carefully to see how much was withheld. That way you can plan ahead for tax season and know if you need to adjust your withholding on regular paychecks.

As someone who's been through this exact situation, I'd definitely recommend not being afraid to ask HR for clarification! When I first encountered "Discretionary Supplemental Income" at my job, I was intimidated too, but it turned out to be way simpler than the fancy name made it sound. One thing that really helped me was keeping track of my bonus payments throughout the year. I created a simple spreadsheet with the gross amount, what was withheld, and what I actually received. This made it much easier to understand the pattern and plan for tax season. Also, don't forget that if you're getting bonuses regularly, you might want to consider adjusting your W-4 withholding on your regular paychecks. Sometimes the 22% flat withholding on bonuses plus your regular withholding can result in over-withholding throughout the year, which means you're basically giving the government an interest-free loan until you get your refund. The tax bracket thing is a common misconception - you only pay the higher rate on income ABOVE the bracket threshold, not on your entire income. So even if a bonus does push you into a higher bracket, it's usually not as scary as it sounds!