This is such a helpful thread! I'm dealing with the exact same situation with my son who's a sophomore at college. One thing I learned the hard way is to keep really detailed records of what you paid for with 529 funds versus out-of-pocket expenses. I created a simple spreadsheet tracking tuition payments, required books, room and board, and other qualified expenses, then noted which ones were paid with 529 distributions versus cash/credit card. This made it much easier when I had to coordinate the American Opportunity Credit with the 529 withdrawals. Like others mentioned, you can't use the same expense for both benefits, but having good records lets you optimize which expenses to allocate where. Also, don't forget that room and board costs can count as qualified 529 expenses if your student is enrolled at least half-time, even if they live off-campus (up to the school's published room and board allowance). This was a nice surprise that helped me use more of our 529 funds tax-free!

Great advice from everyone here! I went through this exact situation last year with my daughter's first year of college. One additional tip that might help - if your daughter has any scholarships or grants, make sure to account for those when calculating qualified expenses for both the 529 distribution and education credits. Tax-free scholarships reduce the amount of qualified expenses you can claim, so if she received $3,000 in scholarships and had $15,000 in tuition, you can only use $12,000 for tax benefits. This coordination gets tricky but is crucial for staying compliant. Also, since your daughter made $9,800 from her part-time job, she'll likely still need to file her own return even though you're claiming her as a dependent. Just make sure she doesn't accidentally claim any education credits on her return - those should definitely go on yours since you're the one claiming her as a dependent. The good news is that once you figure out the system, it becomes much more straightforward in subsequent years. Keep detailed records of all education expenses and 529 distributions throughout the year - it makes tax time so much easier!

I dealt with this exact situation and ended up requesting my "Account Transcript" from the IRS (different from the Wage and Income Transcript mentioned above). It showed adjustments they made based on reported income forms I had missed. Helped me identify what I was missing!

One thing I haven't seen mentioned yet is that you should also check directly with your financial institutions. Most banks, brokers, and crypto exchanges have a "Tax Center" or "Tax Documents" section in their online portals where you can download copies of all the forms they've issued under your SSN for the past few years. This is actually faster than waiting for IRS transcripts and can help you cross-reference what you have versus what was actually filed. I do this every January - log into each account and grab all the tax docs. Sometimes you'll find forms that were issued but never mailed to you due to address changes. For crypto specifically, don't forget about smaller exchanges or DeFi platforms. Many people overlook staking rewards, airdrops, or interest from lending platforms, which can all generate taxable events even if no formal 1099 was issued. The IRS transcript might not show these, but you're still responsible for reporting them.

just wanted to add that in case of an audit, the IRS looks at the "ordinary and necessary" standard for business expenses. so even with perfect receipts, if the expense doesn't seem reasonable for your type of business, you could still have issues. like buying gaming equipment for an accounting business might raise flags even with receipts. credit card statements help show the pattern of your business spending which can actually help your case, even without every single receipt. so don't throw them away even if you find your missing receipts!

Great question! I've been through a similar situation with my consulting business. While credit card statements are definitely helpful supporting documentation, they're not enough on their own for most business deductions. The IRS generally wants to see three things for each business expense: 1) proof of payment (your credit card statement covers this), 2) what was purchased (this is where individual receipts are crucial), and 3) the business purpose. For expenses you're missing receipts for, don't panic - you have options. First, check if any of those purchases were digital/subscription services where you can download receipts from your online accounts. Second, contact vendors directly - many can provide duplicate receipts if you have the transaction date and amount. Third, for small routine purchases from obvious business vendors, well-organized credit card statements with detailed notes about the business purpose can sometimes suffice. Going forward, I'd strongly recommend getting a dedicated business credit card (you don't need an LLC for most business cards) and using a receipt-tracking app or just taking photos immediately after each purchase. This creates a much cleaner paper trail and makes tax time so much easier. The key is showing a consistent pattern of legitimate business expenses with as much supporting documentation as possible. A few missing receipts won't doom you, but having a good system going forward will give you peace of mind.

Instead of waiting anxiously for a letter that may be delayed, here's an alternative approach you can take right now: 1. Call the IRS main number (1-800-829-1040) first thing in the morning (7am Eastern) 2. Select options for "personal tax questions" 3. When prompted for SSN, don't enter anything (this routes you to a human) 4. Ask the representative to verify your current address on file 5. Request information about any pending correspondence 6. If moving soon, submit Form 8822 online immediately This proactive approach gives you control rather than waiting in uncertainty. As a student, you have enough stress already without tax worries!

I went through this exact situation last year as a graduate student! The 420 code appeared on my transcript in early March, but I didn't receive the actual CP75 letter until almost 6 weeks later. The IRS systems update much faster than their physical mail processing. Here's what I learned: the 60-day response period doesn't start until you actually receive the letter in hand, so don't stress about missing deadlines yet. However, given your May 15th move, I'd strongly recommend calling the IRS at 1-800-829-1040 to verify your address is correct in their system. If you need to update it, file Form 8822 immediately. Also, as a student, there's a good chance this is just a routine verification of education credits or student loan interest deductions - very common and usually resolved quickly with proper documentation. Keep checking your mailbox daily, but don't panic about phantom deadlines!

I just ignored a $8.50 use tax I owed last year and nothing happened lol. The state has bigger tax cheats to go after than someone who didn't pay a few bucks on an online purchase. But technically yes you're supposed to pay it.

For your specific situation with the $5.40, here's my practical advice: Yes, technically you're required to pay use tax, but realistically the enforcement risk for such a small amount is essentially zero. However, I'd recommend getting into good habits now. Most states let you report use tax on your annual income tax return - there's usually a line where you can enter the total amount of use tax owed for the year. You can either track individual purchases or use your state's estimation table based on income (much easier). Since you're just starting to deal with this, I'd suggest setting up a simple system: keep a running tally of untaxed online purchases throughout the year, then report the total when you file your state taxes. The deadline is typically the same as your income tax filing deadline. Don't stress too much about this particular $5.40 purchase, but use it as a learning experience for bigger purchases in the future. Better to understand the system now than be caught off guard with a larger amount later!