Something else to watch out for - if you're an international student on an F-1 or J-1 visa, the tax rules for scholarships are TOTALLY different! Most tax software doesn't handle this correctly either. International students often need to file form 1040NR and may be exempt from taxes on scholarships under tax treaties.

This is such an important PSA - thank you for sharing! I work as a tax preparer and see this mistake constantly. What makes it even more confusing is that the IRS gets a copy of your 1098-T, so they KNOW exactly how much scholarship money you received. When your return doesn't include the taxable portion, it's basically guaranteed to trigger a notice. One thing I'd add: keep detailed records of ALL your education expenses, not just tuition. Required textbooks, lab fees, course materials - these can all be used to reduce the taxable portion of your scholarships. I've seen students save hundreds in taxes just by properly documenting these expenses. Also, if you're a graduate student with a teaching or research assistantship, those stipends are almost always taxable income and should be reported on a W-2 or 1099. If your school isn't withholding taxes on stipends, you might need to make quarterly estimated payments to avoid owing a big chunk at tax time. The whole system is way too complicated for students who are already stressed about finances!

This thread has been incredibly helpful! I run a small plumbing business and drive a Ford F-250 (definitely over 6,000 lbs GVWR) to job sites daily. I use it about 75% for business - hauling tools, pipe, water heaters, and driving to emergency calls. I've been claiming standard mileage for the past three years, but after reading everyone's experiences here, it sounds like Section 179 could save me significantly more money. The truck was a major investment for my business, and I had no idea I could potentially deduct the full purchase price in one year rather than spreading it out. One thing I'm curious about - for trades like plumbing where you're responding to emergency calls at all hours, does the IRS scrutinize the business use percentage more closely? Sometimes I get calls at 9 PM for burst pipes and have to drive straight from home. I always log these as business trips, but want to make sure that's appropriate. Also, does anyone know if the tools and equipment I permanently store in the truck bed (pipe threader, drain snake, etc.) factor into the business use justification at all, or is it purely based on mileage? Going to definitely discuss this with my CPA, but this community insight is invaluable. Thanks to everyone for sharing your real-world experiences!

As a small business owner who recently discovered Section 179, I can confirm this strategy is legitimate and incredibly powerful when used correctly. I run a marketing consultancy and purchased a Chevy Tahoe (over 6,000 lbs GVWR) last year for client meetings and transporting presentation equipment. The key things I learned through the process: 1. Documentation is absolutely critical - I use a digital mileage app that timestamps every trip and allows me to categorize business vs personal use immediately 2. The "primarily business use" requirement (>50%) needs to be maintained throughout the depreciation period, not just the first year 3. Consider your long-term business plans - if there's any chance your business use might drop significantly, the recapture rules can create unexpected tax bills later 4. State tax treatment varies significantly from federal rules, so definitely research your state's specific requirements For anyone considering this, I'd recommend being conservative with your business use percentage estimates and keeping meticulous records from day one. The tax savings can be substantial, but the IRS takes vehicle deductions seriously and you want to be bulletproof if questioned. Has anyone here dealt with the recapture situation after their business use dropped? Would love to hear how that process actually works in practice.

anyone else think its ridiculous that we have to deal with all this complicated tax stuff just cuz our companies pay us in stocks sometimes?? like why cant the IRS and brokerages just talk to each other so this all happens automatically? ive been putting off doing my taxes for weeks cuz of my RSUs 😩

I've been using FreeTaxUSA for my RSU taxes for the past two years and it works perfectly fine! The key is understanding that most of the complexity comes from making sure you don't get double-taxed, not from the software limitations. Here's my simple process: 1) Import your W-2 normally (RSU income is already included), 2) When you get to the investment section for your 1099-B, manually enter the correct cost basis (the fair market value when your RSUs vested - this info should be in your company's RSU documents), 3) Check the box that says the 1099-B cost basis is incorrect if your broker reported it as $0 or some other wrong amount. The free version handles this just fine. I've never needed to upgrade to deluxe for RSU reporting. Don't overthink it - if you can handle entering your W-2, you can handle the RSU adjustments!

This is such a common confusion for students! One thing that hasn't been mentioned yet is that you should also consider whether you'll have any education expenses this year that could qualify for tax credits like the American Opportunity Tax Credit (AOTC). If you file independently and have qualifying education expenses, you might be able to claim up to $2,500 in credits yourself. But if your parents claim you as a dependent, they get to claim those credits instead (assuming their income isn't too high). The AOTC phases out for higher-income taxpayers, so sometimes it's more valuable in the student's hands. Also, make sure you understand how your stipend is classified. Some internship stipends are considered wages (subject to payroll taxes), while others might be considered fellowships or scholarships (which have different tax treatment). Your employer should clarify this on your tax documents. The key is running the numbers both ways - total family tax liability with you as dependent vs. independent - and seeing which scenario saves the most money overall for your family.

One thing to keep in mind that I learned the hard way - make sure you coordinate with your parents BEFORE you file! I filed independently my junior year without discussing it with them first, and they had already prepared their taxes claiming me as a dependent. The IRS flagged both returns and it created this whole mess where we had to prove who was actually entitled to claim me. Took months to resolve and delayed both of our refunds significantly. Even if the math works out better for you to file independently, have that conversation early so everyone's on the same page. You might also want to consider having your parents run their taxes both ways (with and without claiming you) to see the actual dollar impact on their end. Sometimes the difference is smaller than you'd expect, especially if they're in higher income brackets where some deductions and credits start phasing out anyway. Also document everything about your support calculation - tuition payments, rent, food, insurance, etc. The IRS support test is very specific and you want to have clear records in case they ever question the dependency status.

I'm really sorry you're going through this frustrating situation. After reading through everyone's experiences here, I'm dealing with something similar with my uncle's estate - it's been 6 months now and I feel like I've been banging my head against a wall. What strikes me most about this thread is how many people found success once they got connected to the right departments and had specific information about what was actually wrong. The pattern seems to be: regular IRS customer service gives you generic "wait longer" responses, but the specialized Deceased Taxpayer Unit can actually tell you what's causing the delay. I'm definitely going to try calling the executor hotline (866-699-4083) tomorrow and specifically ask for the Deceased Taxpayer Unit. I had no idea this existed - I've been calling the regular number and getting nowhere for months. The congressional representative approach also sounds promising based on all the success stories here. It's frustrating that we have to become experts in IRS bureaucracy just to get basic service, but at least now there's a clear roadmap thanks to everyone sharing their experiences. One thing I'm wondering - for those who got resolution through their congressional rep, how long did it typically take from your initial contact to getting actual movement on your case? I want to set realistic expectations as I go into this process. Thank you to everyone who shared detailed experiences. This thread should honestly be stickied as a resource guide for anyone dealing with deceased taxpayer returns!

I'm so sorry you're going through this incredibly frustrating situation. Having dealt with my father's estate last year, I completely understand the helplessness you're feeling after months of generic responses from the IRS. Reading through all the excellent advice here, I want to emphasize a few key points that made the biggest difference in my case: First, definitely use the executor hotline (866-699-4083) and specifically ask for the "Deceased Taxpayer Unit." Regular IRS reps often can't access the same account details or don't know about the specialized departments that handle these cases. Second, the congressional representative route was a game-changer for me. I called my local district office (not DC), asked for constituent services, and had a response from an IRS manager within 5 days. They have direct channels that bypass the normal customer service maze. Third, request your brother's Account Transcript to check for specific transaction codes (like 570 or 971) that might indicate what's causing the hold. In my father's case, we discovered they needed additional documentation that we never received notice about. At 200+ days, you're definitely in the timeframe where these specialized approaches should yield real answers rather than more "wait 30 days" responses. The combination of the right department contacts and having your documentation ready (death certificate, Letters of Administration, certified mail receipt, Form 911 submission) should finally get you the specific information you need. Don't give up - you're closer to resolution than it feels right now!