Has your husband asked his school about emergency loans or payment plans? Many law schools have emergency funds or can defer some costs that might reduce how much you need to pull from retirement. Also look into Grad PLUS loans which can cover living expenses, not just tuition. Might be better long-term than raiding retirement.

Just want to emphasize what others have said about the Traditional IRA rollover approach - this is likely your best bet. When your husband leaves his job, he can roll the 401k into a Traditional IRA, then withdraw for qualified higher education expenses (tuition, fees, books, supplies) without the 10% penalty, though you'll still owe income tax. One important detail: make sure to keep detailed records of all education expenses you're using the withdrawal for. The IRS can ask for documentation, and you want receipts showing the expenses were for qualified items. Room and board don't qualify for the education exception, but tuition and required books/supplies do. For the medical debt portion, if your unreimbursed medical expenses exceed 7.5% of your adjusted gross income, that portion can also avoid the 10% penalty. You'll need good documentation for this too. The timing works in your favor since he's starting school soon - you can coordinate the withdrawal timing with when you actually incur the education expenses.

Another important consideration for construction workers is the "home office deduction" that can work hand-in-hand with your mileage claims. If your husband uses part of your home exclusively for business purposes (storing tools, doing paperwork, meeting clients, etc.), you might qualify for the home office deduction under Section 280A. This is crucial because having a qualified home office strengthens your position that it's your husband's "principal place of business," which then makes trips to temporary job sites deductible from home rather than just between work locations. The simplified method allows you to deduct $5 per square foot up to 300 sq ft ($1,500 max), or you can use actual expenses if you track them carefully. Even a small dedicated workspace can qualify if it's used regularly and exclusively for business. With the mileage and potential home office deductions combined, plus tracking business use of the vehicle for maintenance/insurance, you could be looking at substantial tax savings. Just make sure everything is properly documented - the IRS tends to scrutinize these deductions more closely for construction workers since they're commonly claimed. I'd recommend consulting with a tax professional who specializes in construction industry returns to make sure you're maximizing all available deductions while staying compliant with IRS requirements.

I work as a tax preparer and see this exact situation constantly with construction workers! You're absolutely right to pursue these deductions - they can be substantial. A few critical points that haven't been mentioned yet: **Documentation timing matters:** Start your mileage log IMMEDIATELY, even if it's mid-year. The IRS wants contemporaneous records, not reconstructed logs at tax time. Use a simple notebook or phone app, but record every business trip the day it happens. **The "regular workplace" trap:** Be careful if your husband regularly reports to the company's main shop/yard. If he goes there most days to pick up materials, get assignments, or clock in, the IRS might consider that his "regular workplace" rather than the home office. This would make trips from home to the shop non-deductible commuting. **State tax implications:** Don't forget that many states have their own rules for mileage deductions that might differ from federal rules. Some states are more restrictive. **Alternative minimum tax considerations:** If you're subject to AMT, some of these deductions might be limited or eliminated entirely. The $14,000+ potential deduction you calculated is significant enough that it's worth investing in a consultation with a tax pro who regularly handles construction worker returns. They can review your specific situation and help you set up the proper documentation system from day one.

I'm dealing with a similar situation right now! My 20-year-old son is a dependent and made about $12,000 from his retail job last year. I was initially confused about whether to include his income since he files his own return, but after reading through this thread and doing some research, I confirmed that yes - his income absolutely needs to be included in our household MAGI for Form 8962. One thing I learned that might help others: if your dependent has multiple income sources (like my son had both W-2 wages and some 1099 freelance income), you need to include ALL of it in the household MAGI calculation. Don't forget about things like interest income, unemployment compensation, or other taxable income your dependent might have received. I ended up using tax software to help with the Form 8962 calculations since doing it by hand seemed overwhelming. The software automatically prompted me to enter my dependent's income information, which made the process much smoother. Just make sure whatever method you use, you're including the full household income - it can really impact your final Premium Tax Credit amount!

I just went through this exact situation with my 18-year-old dependent who earned $9,200 last year! The confusion is totally understandable because it seems counterintuitive that you'd include income from someone who files their own return. Here's what I learned: for Form 8962, you absolutely must include your daughter's $8,400 in your household MAGI calculation. The IRS treats your "tax household" as everyone you claim as dependents, regardless of whether they file separately. So your household MAGI will be your income + spouse's income (if married filing jointly) + your daughter's $8,400. A few practical tips that helped me: - Make sure you have a copy of her W-2 when you're doing your Form 8962 - Double-check that you're using the current year's Federal Poverty Level guidelines (they're in the Form 8962 instructions) - If you received advance premium tax credits, be prepared for the possibility that including her income might mean you owe some back - but there are repayment caps that limit how much The good news is that $8,400 probably won't drastically change your credit amount unless you're right on the edge of an income bracket. The Premium Tax Credit phases out gradually based on percentages of the Federal Poverty Level, so it's not an all-or-nothing situation. Don't stress too much about getting it perfect - just make sure you include all household income and follow the form instructions step by step. You've got this!

This is such a comprehensive thread - thank you all for sharing your experiences! I'm currently preparing for my VITA certification and feeling much more confident after reading through everyone's tips. One question I haven't seen addressed yet: Are there any specific areas where the 2025 tax law changes have impacted the certification test content? I know there were some updates to the Child Tax Credit and EITC provisions, and I want to make sure I'm focusing my study time on the most current information. Also, for those who used the tabbing strategy mentioned earlier - do you have recommendations for which specific sections of the publications to tab? I'm thinking of color-coding different topics but want to make sure I'm not overdoing it and making my reference materials harder to navigate during the actual tests. Really appreciate this community sharing so much practical advice. It's making the whole certification process feel much more manageable!

This thread has been incredibly helpful! I'm currently enrolled in a tax prep course and need to complete my VITA certifications by next month. Reading through everyone's experiences has really eased my anxiety about the process. I wanted to add one tip that helped me during my practice sessions - when working through the dependency scenarios, I found it useful to draw out family trees on scratch paper. It sounds silly, but visualizing the relationships really helped me work through those complex tiebreaker rules, especially when multiple people could potentially claim the same dependent. Also, for anyone still deciding whether to attempt the Basic exam for extra credit - I'd say go for it if you have the time. The additional study required really solidified my understanding of the fundamental tax concepts, which I think will make me a better volunteer when I start at the VITA site next year. Thanks again to everyone who shared their strategies and experiences. It's amazing how supportive this community is!

This thread has been incredibly helpful! I'm also running an S-Corp and had the exact same confusion about W2 reporting for 401k contributions. I was actually getting ready to switch payroll companies because I thought mine was making an error by not showing employer matches on the W2s. After reading through all these explanations, I finally understand the logic: employee deferrals reduce current taxable income (so they must be reported in Box 12), while employer matches are just a business expense that doesn't impact the employee's current year tax situation at all. The employer contributions will be taxed much later when withdrawn in retirement, but for current W2 purposes, they're irrelevant. What really clicked for me was the CPA's explanation about "current-year tax benefit vs. future tax implications." That distinction makes perfect sense once you think about it that way. For other S-Corp owners dealing with this same confusion: your payroll company is almost definitely doing this correctly if they're only showing employee deferrals in Box 12 and no employer match amounts anywhere else on the W2. Don't second-guess them like I almost did!

This discussion perfectly captures the confusion so many S-Corp owners experience with 401(k) reporting! I went through this exact same panic when I first reviewed my company's W2s a few years ago. What helped me finally understand this was realizing that the W2 is specifically designed to report items that affect the employee's current year personal income tax calculation. Employee deferrals reduce current taxable wages (hence Box 12 with Code D), but employer matches are essentially "future money" that won't be taxed until retirement withdrawals begin. For anyone still feeling uncertain about this: I'd recommend double-checking with your 401(k) plan administrator that they're properly tracking and reporting all contributions through Form 5500. That's where the employer matches get officially reported to the IRS - just not on individual W2 forms. It's also worth noting that this same principle applies regardless of your 401(k) provider (Fidelity, Vanguard, etc.) or payroll company. The reporting rules are consistent across all traditional 401(k) plans for S-Corps.