Just wanted to share my experience since I went through something similar last year. I had about $8,500 in excess financial aid and was dreading having to report all of it as income. After doing some research and talking to my school's financial aid office, I discovered that several expenses I hadn't considered actually qualified as educational expenses: my laptop (which was required for my major), specific software licenses my professors required, and even some lab equipment I had to purchase for my chemistry courses. The key is getting proper documentation from your school. My financial aid counselor helped me create a detailed breakdown showing exactly how much of my aid went to qualified vs. non-qualified expenses. This reduced my taxable portion from $8,500 down to about $4,200. Also, don't forget that if you're claimed as a dependent on your parents' taxes, the standard deduction for dependents is different - it's the greater of $1,150 or your earned income plus $400 (up to the standard deduction amount). So even with some taxable scholarship income, you might not owe as much as you think. Definitely talk to your financial aid office first - they deal with this question constantly and can usually provide you with the exact numbers you need for your tax return.

Great discussion everyone! I just wanted to add a couple of important points that might help clarify things for students dealing with this situation: 1. **Timing matters**: The IRS looks at when you received the financial aid disbursement, not when you actually spend it. So if you got that $11,000 disbursement in 2025, that's the tax year it potentially affects, regardless of whether you spend it on rent in 2025 or 2026. 2. **Work-study is different**: If any part of your financial aid package includes work-study earnings, those are always taxable income (just like any other job) and will be reported on a W-2. Don't confuse work-study with grants or scholarships. 3. **State taxes**: Don't forget that your state might have different rules than the federal government regarding financial aid taxation. Some states are more generous about what counts as qualified expenses. 4. **Keep good records**: Even if you're not required to file a return this year due to low income, keep all your 1098-T forms and financial aid documentation. If your income increases in future years, you might need this information for education credits or loan interest deductions. The bottom line is that it's always better to be conservative and report what you're supposed to rather than risk penalties later. When in doubt, the financial aid office really is your best first stop - they've seen every variation of this situation!

Has anyone here used TurboTax for handling income from an LLC for coaching? I just started a small LLC for my part-time coaching work and I'm trying to figure out if I need to pay for an accountant or if I can handle it myself.

Just wanted to add that if your brother-in-law is at the D2 level, he should be extra careful about the LLC structure. The income amounts at that level usually don't justify the complexity and additional costs (LLC filing fees, separate tax returns, potential state franchise taxes). I've seen a lot of smaller college coaches get talked into LLCs by agents when they'd actually save more money just maximizing their employee benefits and retirement contributions through the school. The QBI deduction mentioned earlier phases out pretty quickly for high earners, and self-employment taxes on the LLC income can eat up a lot of the supposed savings. Before setting anything up, I'd recommend having a CPA run the numbers on his specific situation - comparing LLC vs. just negotiating for more employer-paid benefits like additional retirement contributions, health savings account maxouts, or professional development stipends that come out pre-tax.

This is exactly why I've been avoiding online casinos despite all the promotional offers I keep getting. The tax implications are just too messy for casual players like me who might want to try a few games with a small deposit. What strikes me most about your situation is how the current system essentially penalizes transparency. The online platforms are actually doing the "right thing" by providing detailed transaction records, but those same records end up creating a tax nightmare because every micro-transaction gets counted separately. I work in financial services and deal with tax reporting regularly, so I have some appreciation for the complexity you're facing. The fact that you need 65,000+ individual transaction records to properly report $1,500 in net winnings shows how completely divorced the tax code is from the reality of how these platforms work. Have you considered reaching out to any tax policy advocacy groups about this? Your detailed documentation of the problem could be valuable for pushing legislative reform. The absurdity of your situation - spending 50+ hours on tax prep to report a small recreational gambling profit - really highlights how broken this system is for ordinary taxpayers. I'm curious if you've calculated what your effective hourly "wage" ended up being after factoring in all the tax preparation time. Probably not very encouraging!

This is absolutely infuriating and perfectly illustrates why so many people avoid legal online gambling entirely. I'm a tax preparer who has seen this exact scenario play out for several clients, and it never gets less ridiculous. What you've described - spending 50+ hours documenting transactions to report $1,500 in actual profit while losing your standard deduction - is unfortunately completely typical. I've had clients who spent more on tax preparation fees than they actually won gambling, which is completely insane. The most maddening part is that this system actively punishes people for gambling legally and transparently. If you had just played poker with friends or bet with an offshore book, you'd have far fewer tax complications. But because you used regulated platforms that properly report transactions, you're stuck with this nightmare. I always warn new clients about this before they start gambling online, but most people don't believe how bad it is until they experience it firsthand. Your detailed breakdown should be required reading for anyone considering claiming those attractive welcome bonuses. The fact that day traders can net gains and losses while recreational gamblers can't shows how arbitrary and unfair this whole system is. We desperately need federal tax reform on gambling taxation, but until then, stories like yours serve as important warnings for other taxpayers.

Just wanted to add that Sprintax isn't always the best with explaining the FICA refund process for international students and scholars. I was on an F1 visa (similar issue with FICA refunds as J1) and they never told me the refund would come as a check separate from my regular tax refund. My check ended up at my university's international office because that was the address I had listed, and I almost missed it! For anyone reading this who's filing through Sprintax in the future - make sure you use an address where you'll actually be able to receive mail 6-12 months after filing.

I went through this exact same situation with my J1 visa in 2022! The waiting is absolutely nerve-wracking, especially when you can't track the status anywhere. A few key points from my experience: - FICA refunds are indeed processed as paper checks only, never direct deposit - They use the address from your Form 843, not your 1040NR - Processing times are incredibly slow - mine took 14 months total Since you've moved back to your home country, I'd strongly recommend calling the IRS international line at +1-267-941-1000 as soon as possible to update your address. When I called, they were able to see that my check had already been processed and mailed to my old address. They put a stop on that check and reissued a new one to my international address. The key is being proactive - don't just wait and hope it shows up. The IRS won't automatically know you've moved internationally unless you tell them. Also, keep in mind that even after you update your address, it can take another 4-6 weeks for them to reissue the check. Good luck! The money is probably there waiting for you, just needs to get to the right address.

I went through this exact situation about 6 months ago. The key thing to understand is that you need to file an original 1040, not an amended return. The IRS substitute return isn't considered your "original" return - it's just a placeholder they created to assess taxes. When you file your actual return, make sure to attach a cover letter explaining that you're filing to replace an IRS substitute return. Include the tax year and mention any notice numbers you received. This helps the processing center handle it correctly. Also, be prepared for a longer processing time than normal. In my case, it took about 12 weeks for them to process my return and adjust my account. The good news is that once processed, I got a significant refund because the substitute return didn't include any of my deductions or credits. One tip: if you owe money on the substitute return and are worried about collection actions, definitely call the IRS (or use one of those services mentioned above) to request a hold on collections while your original return is being processed.

I'm dealing with a substitute return situation right now too, and this thread has been incredibly helpful! One thing I wanted to add based on my research - if you're filing your original return to replace the substitute return, make sure you're also aware of any statutory notice periods that might be running. The IRS typically sends a CP3219 Notice of Deficiency (90-day letter) after they complete the substitute return assessment. If you receive one of these, you have 90 days to either file a petition with Tax Court OR file your original return. Don't let that 90-day window close because once it does, the assessment becomes final and much harder to challenge. I'm currently gathering all my documents to file my original return, and I'm planning to include copies of everything - all income statements, deduction receipts, and a detailed cover letter explaining the situation. Better to over-document than under-document in these cases. Also worth noting that if your original return shows you owe less than the substitute return (which is likely since they don't include deductions), any payments you already made toward the substitute return assessment will be credited toward your actual tax liability.