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Here's a systematic approach to determine if you need to amend: 1. Check if you received Premium Tax Credits (Form 8962) 2. If yes, verify if the 1095-C shows you were eligible for employer coverage 3. If you were eligible for employer coverage AND received tax credits, you need to amend 4. If you didn't claim tax credits, no amendment needed 5. Keep the 1095-C with your tax records for at least 3 years Alternatively, you could file Form 8275 (Disclosure Statement) with your next year's return explaining the situation, though this is usually unnecessary for 1095-C issues.
I went through this exact scenario two years ago and can share what I learned. The key thing to understand is that the 1095-C serves as documentation for the IRS to verify that you had minimum essential coverage, but it's not something you typically need to include with your return unless you're claiming Premium Tax Credits. What I'd recommend doing is comparing the information on your 1095-C with how you answered the health insurance questions on your tax return. If you indicated you had employer coverage for the months shown on the form, and you didn't claim any Premium Tax Credits, then you're likely fine. The IRS already receives this information directly from your employer anyway. However, if there's a discrepancy - like the form shows you were offered coverage during months you claimed you didn't have access to employer insurance - then you might need to consider an amendment. But based on what you've described, it sounds like you're probably in the clear. Just keep the form with your tax records in case the IRS ever has questions later.
This is really reassuring to hear from someone who's actually been through this! I'm in almost the exact same boat - got my 1095-C yesterday and have been worrying about it all day. Quick question: when you say to compare the form with how you answered the health insurance questions, are you referring to the questions about having coverage each month? I think I answered those correctly, but now I'm second-guessing myself about whether I properly indicated it was employer coverage versus marketplace coverage.
Called turbo tax support and they said itll be ready by next week. Take that with a grain of salt tho
I'm dealing with the exact same thing! Been checking TurboTax daily and that 01/30/2025 date for Missouri forms keeps staring me in the face. Super annoying since I already got my federal refund back in early January. At this point I'm wondering if it's worth just switching to a different tax software that actually has their Missouri forms ready. Has anyone successfully switched mid-season without losing all their entered data?
Unfortunately most tax software won't import data from TurboTax, so you'd basically have to start over from scratch. That said, if you kept good records it shouldn't take too long to re-enter everything. I switched from TurboTax to FreeTaxUSA a few years back and it was pretty painless - just had to have all my documents handy again. Might be worth it if you're really frustrated with the delays!
Quick practical tip from someone who's been through this: instead of trying to deduct streaming services individually, look at the American Opportunity Tax Credit (if you're in your first 4 years of undergrad) or Lifetime Learning Credit. These credits can be worth up to $2,500 or $2,000 respectively and cover qualified education expenses including required course materials. Much better value than trying to deduct streaming services as business expenses, and way less likely to trigger IRS questions.
Do textbooks and software count toward those credits too? My tax software never asks about anything except tuition payments.
Yes! Textbooks, supplies, equipment, and software that are required for enrollment in your courses absolutely count toward these education credits. Many tax software programs don't prompt specifically for these, which is why so many students miss out. Just make sure you have documentation showing they're required for your courses (like a syllabus or course materials list). Keep all receipts and documentation for at least 3 years after filing in case of an audit.
CPA here! I see a lot of confusion in this thread, so let me clarify the key points: For drama students like yourself, streaming services are NOT deductible as business expenses because you're not yet in the acting profession. The IRS is very strict about this - you must be currently earning income in a trade or business to claim related expenses. However, you DO have better options: 1. **Education Tax Credits**: If specific streaming content is required for your courses (documented in syllabi), those costs may qualify as educational expenses for the American Opportunity Credit or Lifetime Learning Credit. These credits are often worth more than deductions anyway. 2. **Documentation is key**: Keep detailed records of what's specifically required vs. what's for general educational benefit. Only the required materials will qualify. 3. **Don't mix categories**: Trying to claim student expenses as business deductions is a red flag for audits. Stick to the appropriate education tax benefits. The bottom line: Education credits are your friend here, not business deductions. You'll likely save more money and stay compliant with IRS rules. Consider consulting a tax professional if your situation is complex - it's worth the investment to get it right!
This is really helpful clarification! As a newcomer to tax filing, I had no idea there was such a clear distinction between business expenses and education credits. I've been looking at this all wrong - trying to figure out how to justify streaming services as business expenses when I should be focusing on education credits instead. Quick question though - if I'm already maxing out my education credits with tuition and textbook costs, would any additional qualified education expenses (like required streaming content) still provide any benefit? Or do the credits have caps that would make additional expenses pointless to track?
Check if your state still allows these deductions! Federal eliminated them but I found out NJ still lets me deduct unreimbursed employee expenses on my state return. Saved me about $420 last year!
California allows them too! I was able to deduct my tools on my state return even though I couldn't on federal. It's not as good as the federal deduction used to be, but at least it's something. Worth checking your state's rules.
This is exactly why I think we need to push back on employers more systematically. Mason, your $3,500 in tools plus uniforms and repairs is a significant business expense that your company is essentially shifting to you. Have you considered documenting all these required expenses and presenting them to your employer as a formal request for either reimbursement or a tool allowance? Some companies have started offering annual tool stipends or reimbursement programs once they realize how much their employees are spending. You might also want to check with your union (if you have one) - some have negotiated tool allowances into their contracts specifically because of these tax law changes. Also worth noting: if you do any side work with those same tools (even occasional weekend jobs), you can deduct the business-use portion on Schedule C. Keep detailed records of what percentage of tool use is for side work versus your main job.
Great advice about documenting expenses for employer negotiations! I'm definitely going to try that approach. One question though - for the side work angle you mentioned, how do I properly calculate what percentage of my tools are used for side jobs versus my main employer? Is there a specific way the IRS wants this documented, or is it just based on hours worked? I do maybe 4-5 weekend jobs per month with the same tools, but I want to make sure I'm doing the allocation correctly to avoid any issues.
Javier Cruz
Just a heads up about Washington state - while they don't have income tax, if you're doing any kind of consulting or business work while there (not just regular employment), you might be subject to their Business & Occupation tax. Caught me by surprise when I was working remotely from Seattle for a few months.
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Emma Wilson
ā¢This! I got hit with an unexpected B&O tax bill because I didn't realize my freelance work counted even though I was only temporarily in Washington. Make sure you're tracking what type of work you're doing in each location.
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Ava Thompson
This is such a complex situation, but you're definitely not alone in dealing with multi-state tax issues! Based on what you've described, Colorado sounds like it remains your domicile since that's where your official documents and permanent ties are. One thing I'd recommend is keeping detailed records of your travel dates and work locations going forward - this will be crucial for calculating income allocation between states. You can use a simple spreadsheet or even a phone app to track which days you're working where. Also, don't panic about the withholding situation. Even if Colorado was the only state withholding taxes, you can often claim credits on your Colorado return for any taxes you end up owing to Arizona as a non-resident. This prevents double taxation on the same income. Since you mentioned you can't afford a tax professional right now, consider looking into VITA (Volunteer Income Tax Assistance) programs in your area. They provide free tax help and many volunteers are trained to handle multi-state situations. The IRS website has a locator tool to find VITA sites near you.
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Ethan Moore
ā¢The VITA program suggestion is excellent! I used VITA last year when I had a similar multi-state mess and they were incredibly helpful. The volunteer I worked with had experience with complex residency situations and walked me through everything step by step. One tip - when you call to make an appointment, specifically mention that you have multi-state tax issues. Some VITA sites have volunteers who specialize in more complex returns, and they can make sure you're matched with someone who has the right expertise. Also, start gathering all your documentation now - pay stubs, any state tax documents, records of where you were living/working throughout the year. Having everything organized will make the process much smoother whether you go with VITA or end up using one of the online tools others have mentioned.
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