Quick warning to everyone filling out Form 8863 - make sure your school is eligible! My community college didn't qualify because they weren't participating in federal student aid programs. Wasted hours trying to claim AOTC before figuring this out.

I've been following this thread and wanted to share my experience as someone who went through similar Form 8863 confusion last year. The calculation error you described (getting 2,500,000) is actually really common - I made the exact same mistake! What helped me was creating a simple worksheet. For the American Opportunity Credit, it's: - First $2,000 of qualified expenses = 100% credit = $2,000 - Next $2,000 of qualified expenses = 25% credit = $500 - Maximum total credit = $2,500 The tricky part is that some tax software asks for the percentage as a decimal (0.25) while others want it as a whole number (25). Always double-check which format your form or software expects. Also, since you mentioned being an independent student under 24 - that's perfectly fine for claiming the credit. The age restrictions mainly apply to students being claimed as dependents on someone else's return. As long as you meet the other requirements (enrolled at least half-time, haven't completed first 4 years of higher education, meet income limits), you should be good to go. Good luck with your amended 2023 return too - it's definitely worth going back to claim that credit!

PSA: ALWAYS get a copy of any tax document filed on your behalf, whether original or amended. Your preparer should have provided this automatically. The fact that she doesn't even know if an amendment was filed is incredibly unprofessional and potentially fraudulent. I'd be getting a new tax preparer ASAP.

Based on what you're describing, this sounds like the IRS initiated an internal adjustment to your return, not something your tax preparer filed. The 971/977 codes with a February 2025 date are typically system-generated when the IRS finds discrepancies between what was reported to them (W-2s, 1099s, etc.) and what's on your filed return. Your tax preparer's vague response about "maybe her assistant did it" is definitely concerning though. Any professional tax preparer should have complete records of what was filed under your name and when. I'd strongly recommend: 1. Demanding copies of your original return AND any amended returns they may have filed 2. Getting a detailed explanation of any communications they've had with the IRS on your behalf 3. Consider finding a new preparer for future years The good news is that these IRS-initiated adjustments often result in refund releases, especially if they're correcting calculation errors in your favor. Keep monitoring your transcript weekly - you should see additional transaction codes appear that will show exactly what they're adjusting. If you want definitive answers, try calling the IRS directly at 1-800-829-1040 (though be prepared for long hold times). An agent can tell you exactly what triggered the review and what changes are being made.

Unpopular opinion maybe but I think all this tax anxiety is overblown for most W-2 earners. I've filed my taxes in like 30 minutes using the free fillable forms directly from the IRS website for years. No software fees, no CPA costs. As long as you have your W-2s and 1099s in front of you, it's literally just copying numbers from one form to another. The "complicated" stuff like HSAs have dedicated worksheets with instructions. Unless you have a business or rental properties, paying someone hundreds of dollars seems excessive to me.

I've been following this thread with interest since I'm in a very similar boat - W-2 income, some investment activity, and an HSA. After reading everyone's experiences, I think the key is being honest about your own comfort level and the complexity of your situation. For what it's worth, I've found that even "simple" returns can have nuances that aren't immediately obvious. Last year I thought I had a straightforward filing until I realized I'd been handling my HSA distributions incorrectly for medical expenses. Cost me about $200 in additional taxes that could have been avoided. My takeaway from this discussion is that there's a middle ground between expensive CPAs and basic DIY software. Services like the tax optimization tools mentioned here, or even just getting a one-time consultation to review your approach, might be the sweet spot for people like us who aren't completely tax-illiterate but also don't want to leave money on the table. Thanks to everyone who shared their real experiences - much more helpful than the generic advice you usually find online!

whatever u do DO NOT IGNORE THE LEVY!!! i did that and ended up homeless for 3 months when they took my whole paycheck. call the irs ASAP and explain ur situation. they can do hardship stuff if ur gonna lose housing. installment plans aren't that bad - i pay like $175/month on what i owed and they stopped the levy when i set it up. the ppl on the phone r actually kinda nice if ur honest with them.

First, take a deep breath - you DO have options and the IRS doesn't want to make you homeless. Call them immediately at 1-800-829-1040 and explain your hardship situation. Be honest about how the levy will affect your housing and employment. Based on your income situation, you'll likely qualify for one of these solutions: 1. **Economic Hardship Release** - Request immediate levy release since you can't afford basic living expenses. They can often process this within days. 2. **Currently Not Collectible (CNC) Status** - If your necessary living expenses exceed your income, they'll temporarily stop collection actions. 3. **Installment Agreement** - Set up affordable monthly payments (could be as low as $25-50/month based on your financial situation). Before you call, gather documentation of your monthly expenses: rent, utilities, transportation, food, and medical costs. Fill out Form 433-F (Collection Information Statement) which shows your complete financial picture. The key is acting NOW - don't wait another day. The IRS agents are actually pretty reasonable when you're upfront about genuine hardship. They'd rather have you employed and housed making small payments than unemployed making no payments. You can get through this!

If you filed with earned income tax credit or child tax credit, those returns automatically get extra scrutiny and take longer to process. The IRS is trying to cut down on fraudulent claims of these credits, but in the process, they're making honest taxpayers wait forever.

I totally feel your frustration - the waiting game with the IRS is absolutely maddening, especially when you're dealing with financial stress. Based on what you've described and the transcript codes you mentioned (570 and 971 from June 22), it sounds like your return is definitely under review in their Error Resolution Department. Here's what I'd recommend doing immediately: 1. Call the Taxpayer Advocate Service at 1-877-777-4778 since you mentioned this is causing financial hardship with moving expenses and bills piling up. They can sometimes expedite cases when there's genuine hardship. 2. When you call the IRS again, specifically ask about the notice dated June 22 that shows as code 971 on your transcript. Even if you didn't receive it, they should be able to tell you what it said and potentially email or fax you a copy. 3. Since you have EITC and multiple income sources (W-2s + unemployment), your return likely got flagged for income verification. This is super common but unfortunately adds weeks to processing time. The silver lining is that once they resolve whatever they're reviewing, you should see your refund released pretty quickly. And if they've held it longer than 45 days past the filing deadline, you'll get interest added to your refund amount. Hang in there - I know it's incredibly stressful when it's your money they're sitting on!