Just wanted to add some clarity here since I see some great discussion but also some confusion. The key IRS rule is that AOTC is available for the "first four years of post-secondary education." What matters is whether you've completed four academic years at the START of the tax year, not when you finish your degree. So yes, if you graduate from undergrad in May 2025 but were still in your 4th year (or earlier) when January 1, 2025 began, you can claim AOTC for qualified expenses throughout 2025 - including both your spring undergrad costs AND fall graduate school expenses. One important note that hasn't been mentioned: make sure your graduate program qualifies! The student must be enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible institution. Most traditional graduate programs qualify, but it's worth double-checking if you're in an unusual program. Keep excellent records - enrollment verification letters from both institutions showing your status, receipts for all qualified expenses, and Form 1098-T from each school if provided.

This is such a helpful thread! I'm in a similar situation and want to share what I learned from my tax preparer. One thing to be extra careful about is the income limits for AOTC - the credit phases out between $80,000-$90,000 for single filers ($160,000-$180,000 for married filing jointly) based on your modified adjusted gross income. If you're working while in grad school or have fellowship income, you might get pushed into the phase-out range. Also, don't forget that you can only claim AOTC for a maximum of 4 tax years per student, regardless of how the academic years fall. So if you've already claimed it for 3 previous tax years, this would be your final year of eligibility even if you continue in graduate school. The documentation everyone mentioned is crucial - I keep a folder with enrollment letters from both schools showing my status on January 1st, plus all my 1098-T forms and receipts for books/supplies. Better to over-document than scramble during an audit!

I went through this exact same situation last year with my Cash App 1099-B! The key thing to understand is that the form shows your gross proceeds (what you received when you sold), but you're only taxed on the actual gain or loss. For your $3,500 in transactions, you'll need to gather records of what you originally paid for each Bitcoin purchase. Cash App's transaction history in the app should have most of this info. When you file, you'll report each sale on Form 8949, showing both the sale price (from the 1099-B) and your cost basis (what you paid). The difference is your actual taxable gain or loss. Don't panic about the disclaimer - it just means Cash App doesn't have complete cost basis info for some transactions, which is totally normal. The IRS expects you to provide the missing pieces. Keep good records and you'll be fine!

I just went through this exact same situation! Got my first 1099-B from Cash App last month and was totally confused by all the disclaimers and missing cost basis info. Here's what I learned after doing a ton of research and talking to a tax professional: The 1099-B is just Cash App reporting your sales proceeds to the IRS - it doesn't mean you owe taxes on the full amount. You only pay taxes on your actual gains (or can deduct losses). Since you did $3,500 in transactions with mostly small buys and a couple sells, you'll likely have some gains and some losses that will offset each other. The key is gathering your purchase records. Cash App keeps pretty good transaction history in the app - go to your Activity tab and look for a "Download" or "Export" option to get a CSV file with all your trades. This will show you exactly what you paid for each Bitcoin purchase, which becomes your cost basis. When you file your taxes, you'll use Form 8949 to list each sale individually, showing both the sale amount (from the 1099-B) and what you originally paid for those specific coins. The difference goes on Schedule D as your capital gain or loss. Don't stress too much about the disclaimer - it's standard because Cash App can't always track coins you might have transferred in from other platforms. As long as you have records of your actual purchase prices, you're good to go!

Congrats on finally getting your 846 code! 🎉 I totally understand the paranoia after such a long wait. From my experience and what I've seen here, once that 846 code appears with a specific date, it's pretty much locked in. The IRS has already processed your return and scheduled the refund - that 3/13 date should be solid! I got mine last year and it hit my account exactly when the transcript said it would. You're basically at the finish line now, so try to relax and enjoy knowing your refund is finally on its way!

Rita, congrats on finally getting your 846 code! 🎉 I totally get the paranoia after waiting so long - we've all been there this tax season. From everything I've seen in this community and my own experience, once that 846 code shows up with a date, you can breathe easy. The IRS has already processed your return and locked in that refund date. Your 3/13 should be solid! I got mine last year and it deposited exactly when the transcript said it would. You're basically at the finish line now, so try to relax and enjoy knowing your money is finally coming! The waiting game is brutal but you made it through 💪

Small biz tax preparer here - one more thing to consider: if you live in a state with income tax, you'll need to report this income on your state return too. Some states also have different rules about minimum thresholds for filing business income. Also, while everyone is correctly pointing out that legally all income must be reported, the practical reality is that the IRS matching system won't flag unreported income if there's no 1099 filed. That doesn't make it legal to skip reporting, just explaining why some people "get away with" not reporting small amounts. But building good habits now will save headaches later if your business grows!

Great question! I went through this exact same situation last year with my small pottery business. Made about $900 on Etsy without any 1099 forms and was completely confused about what to do. Here's what I learned after consulting with a tax professional: Yes, you absolutely need to report ALL income regardless of whether you get a 1099 or not. The IRS is very clear on this - if you earned it, it's taxable income that must be reported. However, don't panic! Since you're running this as a business, you can deduct legitimate business expenses on Schedule C, which will reduce your taxable income. Things like: - Materials and supplies for making jewelry - Etsy listing fees and transaction fees - Shipping supplies and postage - Packaging materials - Portion of internet bill used for business - Business-related mileage In my case, after deducting all my pottery supplies, kiln firing costs, and Etsy fees, my $900 in sales became only about $200 in actual taxable profit. This kept me well under the $400 threshold for self-employment tax. The consequences of not reporting could include penalties and interest if the IRS ever discovers it, plus you'd be starting off your tax history with non-compliance. Much better to report it correctly from the start, especially if you plan to grow the business! Keep good records of all your expenses - even small amounts add up and can make a big difference in your final tax liability.

Great advice from everyone here! Just to add one more perspective - I've been doing private tutoring for about 2 years and it's definitely worth getting organized from the start. One thing I wish someone had told me early on is to keep receipts for EVERYTHING tutoring-related, even small purchases. Those $5 whiteboard markers, $15 workbooks, even gas receipts from driving to students - it all adds up over the year. I use a simple envelope system where I drop all tutoring receipts into one envelope as soon as I get home. Also, don't stress too much about the complexity! Yes, it's self-employment income and yes, there's extra paperwork, but for a $3,800 side gig, it's pretty straightforward. The Schedule C form looks intimidating but it's mostly just listing your income and expenses. Once you do it the first time, next year will be much easier. The most important thing is just being honest and keeping good records. The IRS isn't trying to trip you up - they just want to make sure you're reporting your income correctly. You've got this!

As someone who just went through this exact situation last year, I can confirm everything mentioned here is accurate. Your tutoring income is definitely self-employment income that needs to be reported on Schedule C. One thing I'd add is to start tracking your business expenses right away - even things you might not think of as "business expenses" can add up. For example, I was able to deduct a portion of my cell phone bill since I use it to communicate with parents about scheduling, and part of my home internet since I prep materials and research teaching methods online. Also, don't forget about the home office deduction if you have a dedicated space where you prep lessons or do administrative work for your tutoring business. Even if it's just a corner of a room that you use exclusively for tutoring-related activities, it could qualify. The key is documentation - take photos of your workspace, keep all receipts, and maintain good records from day one. It's much easier to stay organized throughout the year than to scramble to recreate everything at tax time!