Don't forget to look at your state tax situation too! Even if you don't need to file federal, some states have lower thresholds. I was in your same situation in GA and still had to file a state return.

Since you're in South Carolina, you're actually in luck! SC has a pretty straightforward tax situation for students. You mentioned that SC state tax is listed on your paystubs but no amounts are being deducted - that's likely because SC has a standard deduction of $12,000 for single filers in 2025, so with your $11,500 income, you probably won't owe any SC state taxes. However, I'd still recommend filing both federal and state returns. For federal, you'll get back that $1,250 in withholding since you're under the filing threshold. For SC, even though you might not owe anything, filing ensures you get any state withholding back (if any was taken) and creates a record. One thing to watch out for - make sure your parents aren't planning to claim education credits based on your tuition expenses. If they are and their income is within the phase-out limits, that could affect whether it makes sense for you to remain a dependent. The coordination between your tax situation and theirs is worth discussing as a family to make sure everyone gets the maximum benefit.

Does anyone know if u need to set this up differently for different accounting software programs? Im using Xero and it just asks me to set up "tax rates" without this recoverable/non-recoverable distinction. So confused!!!

This is such a common confusion point for new business owners! You're absolutely right that US sales taxes are generally non-recoverable, unlike VAT systems. When setting up QuickBooks or any accounting software for a US business, you should select "non-recoverable" for sales taxes. The key thing to remember is that in the US, you collect sales tax from your customers and remit it to the state, but any sales tax you pay on your own business purchases becomes part of your cost of goods sold or business expenses. You can't offset what you pay against what you collect like you can with VAT. For your e-commerce business, make sure you're also registered for sales tax collection in states where you have nexus (physical or economic presence). Each state has different thresholds and rules. And don't forget - while the sales tax you pay isn't "recoverable" through the sales tax system, it is deductible as a business expense on your income tax return, which still provides some tax benefit. Good luck with your new business setup!

I'm in a similar situation - new job starting next week and feeling overwhelmed by the W-4 changes! Based on what everyone's shared here, it sounds like the key is being conservative with withholding to avoid owing money later. I'm single with just one job, so I'm planning to fill out Step 1, leave Step 2 blank, skip Step 3 (no dependents), and maybe add $30-40 extra withholding in Step 4(c) just to be safe. Better to get a small refund than owe the IRS! Thanks for all the helpful advice everyone - this thread has been a lifesaver for understanding the new form.

Great question! I went through this exact situation about 8 months ago when switching jobs. The new W-4 definitely takes some getting used to after the old allowances system. Here's what I learned from my experience: The biggest thing to remember is that the default withholding on the new form tends to be lower than what most people expect, so you might want to be a bit conservative. I'd recommend: 1. Fill out Step 1 with your basic info 2. If you're single with one job, you can probably leave Step 2 blank 3. Skip Step 3 if no dependents 4. Consider adding $25-50 extra withholding in Step 4(c) - this is your safety buffer I made the mistake of not adding any extra withholding my first time and ended up owing about $300 at tax time. Now I always add a little extra just for peace of mind. The IRS withholding calculator others mentioned is helpful, but honestly for a straightforward situation like yours, the conservative approach above should work well. Good luck with the new job!

Has anyone had experience with an installment sale approach? I'm selling my business and the buyer wants to structure it as an asset purchase but pay over 5 years. How does this affect the tax situation?

Great discussion here! I went through a business sale two years ago and learned some hard lessons about the importance of getting proper valuation and allocation documentation early in the process. One thing I wish I'd known is that the IRS pays close attention to how you allocate purchase price between assets, especially when there's a large goodwill component. They want to see that the allocation reflects actual fair market values, not just what's most tax-advantageous for either party. My advice: get an independent business valuation done before you start negotiations. It costs a few thousand dollars but it gives you solid ground to stand on when the buyer's team starts pushing for allocations that favor them. The appraiser will break down the value of tangible assets, customer lists, non-compete agreements, and goodwill based on accepted valuation methods. Also, don't forget about potential depreciation recapture on equipment and other assets - this gets taxed as ordinary income even in an asset sale, which caught me off guard. Make sure your tax advisor runs the numbers on this before you commit to any structure. The whole process is complex but definitely manageable with the right professional help. Good luck with your sale!

I'm going through this exact nightmare right now! Filed in early February, got my error letter in March, and I'm still waiting with zero movement on my transcript. It's incredibly frustrating when you need that refund and the IRS just seems to forget you exist. What really gets me is how they can process millions of returns normally but somehow the errors department operates like it's 1985. I've been checking my transcript obsessively (probably not healthy 😅) and it's still completely blank - no cycle codes, nothing. Has anyone had success with faxing additional documentation even if they didn't specifically request it? My tax preparer thinks we should send a cover letter explaining the error in more detail, but I'm worried it might just confuse things further or reset our place in line. The uncertainty is killing me. At least when you're in normal processing you get some kind of timeline, but with errors it's just "wait and hope." I've been tempted to call but after reading everyone's experiences, it sounds like even getting through doesn't guarantee much progress.

I'm a newcomer to this community but unfortunately not new to IRS errors department delays! Just wanted to share my recent experience since it might help set realistic expectations. I got caught in the errors department earlier this year - filed in January, error letter in February, and finally resolved in late April. That's about 12 weeks total from when I submitted the requested documentation. What I learned is that the "8-10 weeks" timeline people mention is really just the minimum - it can easily stretch longer depending on the complexity of your case and current backlogs. One thing that really helped my peace of mind was understanding that no transcript movement doesn't mean no progress. My case was apparently being worked on for weeks before anything showed up on my transcript. When it finally updated, like others have mentioned, it all happened at once - cycle codes, processing date, and refund date all appeared within 24 hours. The hardest part is accepting that there's really nothing you can do to speed it up once you've submitted what they requested. Calling constantly doesn't help and might actually be counterproductive. I found that checking my transcript once a week (instead of daily) helped reduce my stress levels significantly. Hang in there - it will eventually resolve, even though the wait feels endless!