Has anyone used the IRS Free File options for handling education credits with 1098-T forms? I'm wondering if they're as good as the paid options for education credits.

I went through this exact same situation last year as a first-time college student! One thing that really helped me was double-checking that all my qualified expenses were accounted for. Beyond what's on your 1098-T, don't forget you can also claim required textbooks, lab fees, and even things like required course materials that you paid for separately. Since you're independent and made $22k, you should definitely qualify for the American Opportunity Credit which is way better than the Lifetime Learning Credit. The AOTC can give you up to $2,500 and up to $1,000 of that is refundable even if you don't owe any taxes. Also, keep all your receipts! I learned the hard way that the IRS might ask for documentation later. Make sure you have records of your textbook purchases, any lab fees, and other required course expenses that aren't included on the 1098-T. TurboTax should have a section where you can add these additional qualified expenses. One last tip - if your scholarship money was used for non-qualified expenses like room and board, that portion might be taxable income, so make sure TurboTax is handling that correctly too.

Thanks everyone for all the helpful suggestions! I'm going to try the state portal option first since it's free, but it's good to know I have backup options with the tax software or taxr.ai if that gets too complicated. Really appreciate all the advice on handling the multiple state situation - definitely feeling less stressed about this now!

Just wanted to add another perspective as someone who works in tax preparation - when you file state-only returns after already submitting your federal, double-check that your federal AGI matches exactly what you're reporting on your state forms. Even small discrepancies can trigger correspondence from the state. Also, since you moved between Colorado and Arizona mid-year, you'll want to be extra careful about which state gets credit for which income periods. Colorado is particularly strict about this for people who move in/out during the tax year. Make sure you have documentation of your move date (lease agreements, job start date, etc.) in case either state questions your residency periods later. One more tip: if you end up owing money to either state, consider making the payment even before you file the return if possible. Both states charge interest and penalties from the original due date, not from when you actually file.

I'm so sorry for your loss, Pedro. Losing a grandparent is never easy, and dealing with estate matters during grief makes it even harder. Everyone has given you great advice here. I want to emphasize one key point that might give you some peace of mind - as the beneficiary, you typically don't owe income tax on inherited property. The inheritance itself isn't considered taxable income to you. A few practical next steps to consider: 1. Get copies of all estate documents from your uncle (the executor) 2. Contact the county assessor's office about transferring the property deed 3. Check with your homeowner's insurance - you'll need to get coverage in your name 4. Review any outstanding debts on the property (utilities, HOA fees, etc.) The timeline can feel overwhelming, but most estate matters don't have to be resolved immediately. Focus on securing the property and understanding your options before making any big decisions about keeping vs. selling. And don't hesitate to consult with an estate attorney if the situation becomes more complex than expected. Take care of yourself during this process!

Pedro, I'm sorry for the loss of your grandfather. Estate matters can feel overwhelming, especially when you're grieving. One thing I haven't seen mentioned yet is the importance of getting multiple copies of the death certificate - you'll need these for transferring the property deed, insurance claims, and various other estate-related tasks. The funeral home usually provides a few, but you might need more than you expect. Also, since you mentioned this is happening near year-end, be aware that some estate tax elections and filings have specific deadlines. For example, if the estate needs to file Form 706, it's generally due 9 months after death (with possible 6-month extension). Your uncle as executor should be handling this, but it's good for you to understand the timeline. If you decide to keep the property, consider whether you want to live in it, rent it out, or hold it as an investment. Each option has different tax implications going forward. And if you're thinking about selling, remember that you have time - there's no rush to make that decision immediately after inheriting. The fact that you're asking these questions now shows you're being responsible about handling this properly. Take it one step at a time.

This thread has been incredibly helpful! As someone who's dealt with similar classification confusion, I want to emphasize how important it is to document everything when these situations arise. What really strikes me about your boss's response is that he seemed genuinely surprised to learn about the proper classification rules. This suggests there might be a real knowledge gap among small business owners about employment tax requirements. It's encouraging that he was willing to correct the issue once he understood the legal implications. For anyone else reading this who might face similar situations in the future, I'd recommend keeping records of any conversations about compensation classification - whether through email, text, or written notes with dates. If you do end up needing to file Form 8919 or contact the IRS, having that documentation can be really valuable. It's also worth noting that this kind of misclassification can affect more than just your current tax situation. Incorrectly classified income might impact things like unemployment benefit calculations or Social Security credit calculations down the road. So it's definitely worth getting it corrected even if it feels awkward to bring up with your employer. Really glad this worked out well for you! Your willingness to speak up probably helped protect other employees at your company too.

This is such an important thread and I'm really glad you stood up for yourself! As someone who's navigated similar employment tax issues, I can't stress enough how critical it is to understand these classifications early in your career. What your employer was suggesting is unfortunately a common mistake in small businesses - treating employee bonuses as 1099 income to avoid paying their share of payroll taxes. The reality is that if you're a W-2 employee (which you clearly are with regular paychecks and a typical employment relationship), ALL of your compensation including bonuses must be processed through payroll and reported on your W-2. The "saving us both money" explanation is particularly concerning because it really means "saving ME money while costing YOU more." You would have ended up paying the full 15.3% self-employment tax instead of just your 7.65% employee portion, while your employer saved their matching 7.65% contribution. I'm so relieved to see from your update that your boss was receptive and willing to correct this! It gives me hope that this was genuinely a misunderstanding rather than intentional tax avoidance. His willingness to run it through payroll properly shows he wants to do the right thing once he understood the legal requirements. For anyone else reading this, trust your instincts when something feels off about your compensation structure. Employee rights include receiving your wages in the legally correct format, and there are great resources available (like several mentioned in this thread) to help you understand and advocate for proper classification.

As someone who just went through this exact process last month, I can confirm you still have time! Here's what worked for me: The ID.me setup is actually pretty straightforward - it just requires identity verification (driver's license photo, selfie, etc.). The whole process took me about 15 minutes. Once that's done, you can access the IR Application for TCC portal immediately. For the TCC application itself, have these ready: - Your company's EIN - Business address and contact info - Estimate of how many forms you'll file (be realistic - they may ask for justification if the number seems high) - Your role/authority to file on behalf of the business I submitted my application on December 8th and got approval on December 28th, so about 20 days. They seem to be processing faster than the stated 45 days, possibly because of the January deadline crunch. One tip: when you get your TCC, immediately test a small batch in the FIRE system's test environment before submitting your actual returns. The error messages in testing are much more helpful than production rejections! The whole process is definitely doable if you start this week. Good luck!

Just wanted to add another perspective as someone who's been handling information returns for our mid-size company for the past 3 years. The FIRE system setup is definitely worth doing if you plan to file information returns regularly - it becomes much more cost-effective than outsourcing once you have the process down. A few things I wish I'd known when starting: 1. **Keep detailed records of your TCC application** - if you need to make changes later or have issues, having all your original application details handy saves time. 2. **The FIRE system has scheduled maintenance windows** - usually announced on the IRS website. Plan your filing schedule around these to avoid last-minute surprises. 3. **Consider doing a "dry run" with just a few test records** your first year to get familiar with the submission process before uploading hundreds of forms. 4. **Save all your acknowledgment files** from successful submissions - these serve as your proof of filing if the IRS ever questions whether you submitted on time. The learning curve is steep initially, but once you have your TCC and understand the process, it gives you much more control over timing and costs compared to outsourcing. Plus, you can make corrections immediately if issues come up rather than going back and forth with a third party. For this year specifically, if you start the ID.me and TCC process this week, you should be cutting it close but still make the January 31st deadline for 1099-NECs.