quick question - if i claim the 2021 child tax credit now by amending my return, will that trigger an audit? i'm worried about opening a can of worms with the irs.

Hey Omar! I was in almost the exact same boat - got that IRS letter in 2021 about potentially qualifying for the child tax credit but life got crazy and I completely forgot about it. Last year I finally filed an amended return and got back over $4,000! The good news is you still have time since the 3-year window doesn't close until April 2025. With kids aged 4 and 7 in 2021, you could potentially get $6,600 ($3,600 + $3,000) if you didn't receive any advance payments. Start by creating an IRS online account if you don't have one - you can see your payment history there to check if you got any monthly payments between July-December 2021. If not, you're likely eligible for the full amounts. Then just file Form 1040-X. TurboTax can walk you through it, or if you want to be extra sure, a tax preparer can help. Don't let that money sit there - it's rightfully yours!

You might also qualify for earned income credit if ur income isnt too high. def look into that too!

Just wanted to add that if you're filing late and expecting a refund (which you likely are with the Child Tax Credit), there's no penalty! The IRS only charges penalties if you owe money. So don't stress about being late - you're actually giving the government an interest-free loan. I'd recommend using the IRS Free File program if your income is under $73,000, it's completely free and walks you through everything step by step.

Don't forget that community colleges often have student tax help services! Mine offers free tax filing assistance through the VITA program (Volunteer Income Tax Assistance). They specialize in handling education credits and can help you navigate this exact situation with the 1098-T. Check if your school offers something similar - these services are usually staffed by accounting students supervised by professors or certified tax professionals.

I had a very similar experience with my community college last year! The key thing to understand is that you're still responsible for reporting education-related income and expenses on your tax return, even without an official 1098-T form. Since your scholarships/grants ($2,575) exceed your qualified tuition payments ($1,225.50), you'll need to report the excess amount ($1,349.50) as taxable income on your tax return. This goes on Line 1 of Form 1040 with "SCH" written next to it to indicate scholarship income. However, you can still claim education tax credits like the American Opportunity Tax Credit or Lifetime Learning Credit based on your actual qualified education expenses - just make sure you have documentation like payment receipts, bank statements, and your student account records. The reason your school isn't issuing an official 1098-T is likely because your scholarships exceeded your qualified expenses, which means they're not required to file the form. But that doesn't eliminate your tax reporting obligations! Keep all your records and consider visiting your school's VITA tax assistance program if they offer one - they're really helpful with education credit questions.

This is such a common challenge for growing businesses! I've been through this exact situation with our company when we expanded to remote workers in 6 states. Here's what I learned: Yes, you'll likely need to register as a foreign entity in each state where you have employees, but the good news is that you won't pay full taxes on all profits in every state. Each state uses apportionment formulas to determine what portion of your income is taxable there - typically based on factors like payroll, property, and sales in that state. The key is getting organized early. I'd recommend: 1. Document exactly what business activities happen in each state (not just where employees live) 2. Understand each state's specific nexus thresholds - some have minimum requirements before you need to file 3. Consider whether your remote workers are just living in those states vs. actually conducting business there For a medical device R&D company, if your actual R&D activities and operations are centralized in one state, you might have less nexus exposure than you think. The remote workers might just create payroll tax obligations rather than full business income tax nexus in some states. Definitely worth consulting with a multi-state tax specialist to map out your specific situation before diving into registrations everywhere.

This is exactly the kind of scenario that keeps business owners up at night! I went through something similar when we had remote employees in 4 states. One thing that really helped was creating a detailed matrix of each state's requirements - not just for income taxes, but also for sales tax, unemployment insurance, workers' compensation, and any professional licensing requirements. A few additional considerations that caught me off guard: - Some states have "throwback" rules that can affect your apportionment calculations - Certain states have different nexus thresholds for different types of taxes (income vs. sales vs. payroll) - If any of your remote workers are handling sales activities, that could create additional nexus considerations beyond just having employees For medical device R&D specifically, you'll want to pay close attention to where your intellectual property is being developed and used. Some states have specific rules about how IP income gets sourced and taxed. The administrative burden is real, but there are definitely strategies to streamline it. Consider implementing a centralized system for tracking employee work locations and activities from day one - it makes the apportionment calculations much easier come tax time. Would be happy to share more specifics about what worked for us if you're interested!

They're just doing this to earn interest on our money for as long as possible. Pure scam. I had a hold placed on my refund for no reason last year. When the letter finally arrived it just asked me to verify my identity by answering a few basic questions. Got my refund 3 weeks later with zero explanation for the hold.

This exact thing happened to me three years ago and I was terrified thinking I'd done something wrong on my taxes. Turned out it was just a routine identity verification - they sent me a 5071C letter and I had to go through the ID.me verification process online. The whole thing took about 20 minutes and I had my refund deposited within 9 business days after completing it. The waiting is definitely the worst part, especially when you're counting on that money for bills. But from what I've seen in this community, the vast majority of these holds are resolved pretty quickly once you respond to whatever they're asking for. Try not to spiral too much while you wait for the letter - easier said than done, I know! Keep us posted on what the letter says when it arrives.