As someone who's been through a similar situation with employer-paid education benefits, I wanted to share what ultimately worked for me. The key is understanding that you have multiple avenues to resolve this, even when HR initially pushes back. First, try approaching your employer one more time, but this time with specific documentation. Print out IRS Publication 15-B, Section 3, which covers working condition fringe benefits for education. Highlight the part that explains education qualifies when it "maintains or improves skills needed in your present work." For RN-to-NP programs, this often applies since you're building upon your existing nursing knowledge base. If your employer still won't budge, you're not stuck. You can file your return showing the W-2 as issued, but then claim the adjustment by filing Form 4852 (Substitute for Form W-2) along with a detailed explanation of why the education qualifies as a non-taxable working condition fringe benefit. Include documentation like your job description, the education program details, and how it relates to your current nursing role. The fact that your employer is paying for this education actually strengthens your case - it suggests they see value in the education for your current position. Keep all documentation about your nursing program and how it enhances your current ICU skills, as this will be important if there are ever any questions. Don't let HR's initial resistance discourage you. Many HR departments aren't well-versed in the nuances of education benefit taxation, especially for healthcare professionals. You have legitimate options to get this resolved correctly.

I'm a healthcare administrator who's dealt with these education benefit classifications many times, and I wanted to add some practical perspective to help you navigate this situation. The good news is that RN-to-NP education often does qualify as a working condition fringe benefit, especially in your case where you're remaining in nursing and your employer is directly paying the institution. The "maintains or improves skills" test is key here - since NP education builds upon your existing nursing knowledge base rather than training you for a completely different field, you likely have a strong case. For dealing with your HR department, try this approach: Request a meeting and bring IRS Publication 15-B (specifically pages 16-17 about working condition fringe benefits). Ask them to show you in writing which part of their tuition questionnaire led them to conclude this should be taxable income. Often, HR departments make assumptions based on incomplete understanding of the tax code. If they still won't cooperate, document everything. Get your current job description, your NP program curriculum, and a statement from your nursing supervisor about how this education enhances your current role. This documentation will be crucial whether you're filing Form 4852 or appealing to your employer again. One often-overlooked point: The fact that your employer is paying tuition directly to the university (rather than reimbursing you) actually strengthens the argument that they view this as benefiting your current employment relationship, not preparing you to leave. Don't give up - I've seen many of these situations resolved in the employee's favor once the proper documentation and IRS citations are provided.

I've been following this thread and wanted to add one more consideration that could be really important for your situation. Since your dad is the annuitant on both contracts and you mentioned he has substantial medical bills, you should also ask the insurance company about any "nursing home" or "long-term care" provisions in your annuities. Many annuity contracts written 8+ years ago included provisions that allow penalty-free access to funds if the annuitant requires long-term care or is confined to a nursing home for a certain period (usually 90+ days). Even if your dad's current medical situation doesn't involve long-term care, these provisions sometimes extend to other qualifying medical expenses or disabilities. The key advantage is that these provisions often waive the 10% early withdrawal penalty entirely, while still allowing the annuitant to access the funds. You'd still owe ordinary income tax on the earnings, but eliminating that 10% penalty could save you several thousand dollars on the amounts you need to withdraw. Also, I'd suggest asking about the specific withdrawal order from your contracts. Some annuities use FIFO (first in, first out) which means your initial contributions come out first before any taxable earnings. Others use a pro-rata method. Understanding this could help you calculate exactly how much of any withdrawal would be taxable vs. just return of principal. Given all the great suggestions in this thread, it sounds like you have a solid plan to explore all options with your insurance company before making any decisions. The fact that your dad is both annuitant and beneficiary really does create some unique possibilities that standard ownership transfer scenarios don't address.

This has been such a comprehensive discussion with really practical advice! As someone who works with annuities regularly, I wanted to add one final consideration that could be crucial for your dad's situation. Since you mentioned these are 8-year-old contracts with significant growth, make sure to ask your insurance company about any "free withdrawal" provisions. Many annuities allow you to withdraw up to 10% of the contract value annually without surrender charges, and sometimes these free withdrawals have more favorable tax treatment or can be structured to minimize the taxable portion. If your dad needs, say, $25,000 total and your combined annuities are worth around $115,000, you might be able to take advantage of the 10% free withdrawal from each contract ($11,500 combined) this year and another 10% early next year. This could spread the tax impact across two years while potentially avoiding surrender charges entirely. Also, given all the medical expense documentation you'll be gathering, don't forget that your dad might be able to deduct qualified medical expenses that exceed 7.5% of his AGI on his own tax return. If he receives taxable distributions from the annuities but can also claim large medical deductions, the net tax impact might be much less severe than initially calculated. You've got a solid plan for Monday's call with the insurance company. The key is getting all the facts about your specific contracts before making any moves. Good luck, and I hope you find a solution that helps your dad without creating too much of a tax burden for your family!

My s-corp lost almost $60k last year and my accountant specifically told me that taking a reasonable salary is STILL required even during loss years if you're active in the business. The losses just pass through to your personal return where they offset other income.

Just want to emphasize what others have said - you're absolutely doing the right thing by continuing to take a salary even during the loss year. The IRS is very clear that active shareholders must receive reasonable compensation regardless of profitability. Your brother's situation is actually pretty straightforward since he's truly inactive. No services = no compensation required. Just make sure you document his non-involvement clearly as others suggested. One thing to keep in mind: that $47k loss will flow through proportionally to both of you on your K-1s, which could actually provide some tax relief on your personal returns depending on your other income sources. The salary you're taking is actually helping to increase that loss (since payroll is a business expense), so you're handling this correctly from both a compliance and tax strategy perspective.

I'm in exactly the same situation and feel your pain! Filed my amended return in June 2022 and it's been 20 months of absolutely nothing. The "Where's My Amended Return" tool has shown "received" since August 2022 with zero updates. What's really helped me cope with this nightmare: **Set realistic expectations**: I've accepted that 2022 amended returns are basically in purgatory right now. The IRS is prioritizing current year returns, and amendments are getting pushed to the back burner indefinitely. **Check your account transcript monthly**: Sometimes you'll see processing codes appear there before the online tool updates. Look for codes like 570 (additional review) or 766 (credit to account). At least it gives you something concrete to monitor. **Document your timeline**: Keep a record of when you filed, every status check, and any phone calls. If this drags on much longer, you'll need this documentation for the Taxpayer Advocate Service or potentially Tax Court if they try to claim statute of limitations. **Don't stress about calling yet**: Honestly, the phone wait times are brutal and the agents often don't have any more information than what's available online. Save your sanity for now unless something urgent comes up. The whole system is completely broken. It's infuriating that they can process regular returns in 21 days but take 2+ years for amendments. Based on what I'm seeing here, some early 2022 amendments are finally starting to move, so hopefully we're getting close to our turn. Hang in there - we'll get through this eventually!

I'm so relieved to find this thread - I thought I was going crazy! Filed my amended return in September 2022 and it's been 17 months of complete silence. The "Where's My Amended Return" tool hasn't budged from "received" since October 2022. Reading everyone's experiences here is both reassuring and terrifying. Reassuring because clearly this is a widespread systemic issue, not just my return that got lost. Terrifying because some of you have been waiting even longer than me! I've been checking the status obsessively, which is probably making my anxiety worse. Based on all the great advice in this thread, I'm going to: 1. Start checking my account transcript monthly instead of the online tool weekly 2. Look for those specific transaction codes (570, 766, etc.) that others mentioned 3. Create a documentation log of all my interactions and status checks 4. Stop panicking and accept that this is just the new reality for 2022 amended returns The interest payment point several people raised is something I hadn't considered. Definitely going to ask about that when this finally gets processed. After waiting this long, they absolutely should be paying interest on the delay. It's absolutely ridiculous that they can process regular returns in weeks but take 2+ years for amendments. The system is clearly broken, but at least we're all suffering through this together. Thanks everyone for sharing your experiences and tips - it helps to know I'm not alone in this nightmare!

This is such helpful information from everyone! I'm actually dealing with this exact situation right now - filed my taxes two weeks ago and have been dreading the conversation with my trustee. Reading through these experiences, it sounds like the key things are: 1) Don't spend the refund before getting approval, 2) Have documentation ready for any expenses you want to justify, and 3) Know that each district really does handle it differently. @Mei Chen - that's really encouraging that your district allowed you to keep 100% of the EIC! I'm hoping mine has a similar policy. Did you have to file any specific paperwork beyond just notifying them, or was it more automatic once they reviewed your return? For anyone still figuring this out, it might be worth calling your trustee's office early in tax season to ask about their specific procedures. Better to know upfront than be scrambling after you've already filed!

I'm new to Chapter 13 and this thread is incredibly helpful! I filed my petition about 4 months ago and my first tax season under bankruptcy is coming up. Reading everyone's experiences, it seems like the common thread is to be proactive and transparent with your trustee. A few questions for those who've been through this: • Is there a typical timeline for when you need to notify your trustee after filing taxes? • Do most of you use tax preparation software or go to a professional given the bankruptcy complications? • Has anyone had success arguing that certain credits should be treated as "tools of the trade" or necessary for maintaining employment? I'm particularly concerned because I have a large Earned Income Credit coming and my plan payments are already pretty tight. Any advice on how to frame the request to keep a portion would be amazing. Thanks for sharing your experiences - this community is a lifesaver!