Did anyone address whether books and supplies count in the support calculation? I spent about $1,200 on textbooks last year and another $600 on a required laptop. Do these count toward my total "support" figure?

Just wanted to chime in with some clarification since I see there's been some confusion in the thread about the support test calculation. The key thing to remember is that for the refundable portion of AOTC, "support" means the TOTAL amount it cost to support you during the tax year, regardless of who actually paid for it. This includes: - Full tuition costs (even scholarship-covered portions) - Full room and board costs (even if paid by grants) - Books, supplies, and required equipment - Personal expenses like clothing, transportation, medical costs - Any other living expenses So in your example, Elijah, if your fall tuition was $32,000 but scholarships covered $29,000, you include the full $32,000 in your support calculation, not just the $3,000 you paid. The IRS looks at it this way: What was the total dollar amount needed to support you? Then, did you provide at least half of that support through your own earned income? Given your income of $27,500, your total support would need to be $55,000 or less for you to qualify. With university costs these days, that might be challenging, but you'll need to add up all your actual expenses to see where you stand. Hope this helps clarify things!

I went through something very similar last year and learned the hard way that this kind of communication gap is unfortunately more common than it should be. While automatic extension filing is standard practice at many CPA firms, the complete radio silence afterward is definitely not acceptable professional behavior. Here's what I'd suggest based on my experience: Send your CPA a written email (for documentation) asking three specific questions: 1) Are you preparing my 2019 return? 2) What's your timeline for completion? 3) What's your fee structure for this year's services? Give them 48-72 hours to respond. If they don't respond promptly or give vague answers, start interviewing new CPAs immediately. You have until October 15, which gives you plenty of time to find someone who actually communicates. When you do interview new preparers, ask them directly about their communication policies - how they notify clients about extensions, estimated payment deadlines, and filing status updates. The silver lining is that the extension does protect you from late filing penalties, so even though the communication was poor, they did technically do something beneficial for you. But you deserve much better client service than this.

I've been a CPA for over 15 years and can confirm that filing extensions without explicit client notification is unfortunately more common than it should be, but it's definitely not best practice. Good CPAs should always inform clients when filing extensions, even if it's mentioned in the engagement letter. The concerning part of your situation is the complete lack of communication since January. If there's no signed engagement letter for 2019 services and they filed an extension without your knowledge, you need clarity immediately. They may be assuming you're continuing services based on your 2018 engagement, but that's not how professional relationships should work. My recommendation: Send them a written request today asking if they're preparing your 2019 return, what their timeline is, and what fees they're charging. If they don't respond within 2-3 business days or give you unsatisfactory answers, start looking for a new CPA. The extension gives you until October 15, so you have plenty of time to make a switch if needed. A good CPA will welcome your questions and provide clear answers - that's basic client service.

I've been following this thread and wanted to add my perspective as someone who actually went through with reporting tax evasion last year. Like many of you, I struggled with the moral aspect for months before finally submitting Form 3949-A. The person I reported was a local business owner who was openly bragging about structuring transactions to avoid reporting income - not just to me, but to anyone who would listen at community events. What finally convinced me was realizing that their bragging had started influencing other small business owners to consider similar "strategies." I focused my report on documented facts from their public statements: specific comments about unreported income, approximate amounts they mentioned, and timeframes. I was very careful to only include information that multiple people could have reasonably heard, not private details that would trace back to me. The IRS never contacted me directly about the outcome, but I did notice significant changes in the person's behavior about 6-8 months later. They stopped the public bragging, became much more private about their finances, and started complaining to mutual acquaintances about "government overreach" - which seemed like a pretty clear indication that something had happened. My advice: if someone is openly flouting tax laws and potentially encouraging others to do the same, you're not being vindictive by reporting it. You're helping maintain the integrity of a system that depends on voluntary compliance. Focus on facts you can document, submit the report, and let the IRS handle the rest.

I've been in your exact situation and can share what I learned from the process. About 18 months ago, I reported someone who was openly bragging about making "way more than six figures" while paying almost nothing in taxes because they had "cracked the code" on avoiding the IRS. What really helped me move forward was understanding that the IRS treats most tax evasion cases as civil matters rather than criminal ones. They're primarily interested in collecting the taxes owed plus penalties and interest, not in destroying people's lives. Criminal prosecution is typically reserved for cases involving massive amounts or organized fraud schemes. I used Form 3949-A and included specific details from their public bragging - dates of conversations, approximate income amounts they mentioned, and their own descriptions of their tax avoidance methods. The key is documenting their own words rather than your interpretations or assumptions. The most important thing I learned: stick to facts that came from their public statements. If they're bragging openly about evading taxes, that information could have come from any number of people who heard those conversations. This helps protect your identity as the reporter. Never got direct feedback from the IRS (they don't provide updates due to privacy laws), but about a year later I noticed the person became much more private about their finances and stopped making those bragging comments entirely. They also seemed significantly more stressed during tax season. My advice: if someone is openly advertising their tax evasion, they've made their choice to break the law publicly. Filing a report isn't vindictive - it's helping ensure the tax system works fairly for everyone who does follow the rules.

One thing nobody has mentioned - if you're donating significant amounts, you might actually get close to the standard deduction threshold with your other deductible expenses combined. Track everything carefully like mortgage interest, state taxes, medical expenses over the threshold, etc. You might be surprised when you add it all up with the donations.

Another angle to consider - make sure you're documenting everything properly for the donations. Since you're dealing with products you received as income, you'll want detailed records showing the fair market value when you donate them (which as you noted, will likely be lower than the retail value you were taxed on). Keep photos of the items, donation receipts with proper descriptions, and maybe even research comparable prices at thrift stores or online marketplaces to establish the donation value. If you do end up itemizing in future years or if these donations help push you over the standard deduction threshold, having solid documentation will be crucial. Also worth noting - if any of the products are particularly valuable (over $500), you'll need additional documentation requirements for the IRS. The documentation headache is real, but it's better to be prepared now than scramble later during tax season.

Something nobody's mentioned yet - you need to contact the seller ASAP! In my experience with a similar situation, getting the seller to file their US tax return properly was the fastest solution. If the seller can prove they had little or no gain on the sale (or even a loss), their actual tax liability could be MUCH lower than the 15% withholding amount. They can file Form 1040-NR to report the sale, pay any actual tax due, and get a refund for the difference. This becomes their problem too because the IRS will eventually come after them separately for the same transaction if nobody handles the withholding. Most foreign sellers will cooperate once they understand the situation because they want to avoid problems with the IRS too.

This is exactly why I always recommend buyers get a pre-closing checklist that specifically includes FIRPTA verification when dealing with ANY seller - you never know someone's citizenship status just by looking at them or their name. For your immediate situation, I'd suggest a three-pronged approach: 1. **Document the title company's failure**: Gather all your closing documents and highlight anywhere the seller's foreign status should have been obvious (foreign address, non-US phone number, etc.). This creates your paper trail for potential E&O claims. 2. **Contact the seller immediately**: As others mentioned, if they file Form 1040-NR showing their actual gain/loss, it could significantly reduce or eliminate the tax liability. Many foreign sellers don't realize they need to file US returns for property sales. 3. **File Form 8288-C for withholding credit**: Even though you missed the 8288-B deadline, you can still file 8288-C to claim credit for any withholding that should have been done at closing. This essentially tells the IRS "we're handling this now" and can pause collection activities. The $42K bill is scary, but remember - this is often the maximum theoretical liability. The actual amount due depends on the seller's real gain, which could be much less. Don't panic and don't ignore it, but know that there are multiple paths to resolution here.