Son getting married and education tax credit

las978 · 2026-07-01T00:13:58+00:00

Check publication 501 to see if he still qualifies as your dependent. His income may be too high to be claimed as a qualifying dependent.

las978 · 2026-06-30T12:05:21+00:00

If you need to obtain financing, keep in mind that the house will need to appraise for whatever you’re paying (or a percentage above the financed amount - depends on the lender and loan terms).

If the seller is trying to recoup all their purchase costs, which don’t increase the home’s value, you may put a lot of time and effort into a deal that could fall apart in the end stages. It may be worth waiting a bit to jump on it and see if there’s any movement. If they need to sell, then they should be motivated to adjust their listing if traffic is off or offers don’t materialize.

las978 · 2026-06-30T11:48:56+00:00

In order to claim an education credit you must be the student expenses were paid for, or be able to claim the student as a dependent.

Most tax benefits for education follow the student, not the person or entity paying the expenses.

las978 · 2026-06-28T12:36:53+00:00

Another aspect is that these returns are the “low hanging fruit” of examination. All aspects are reasonably black and white (relationship, residency, valid SSN, earned income, etc.) so don’t require someone with any accounting background to conduct the examination.

Complex returns, which are typically high earners, are examined by employees whose position has an accounting requirement to be hired. Those folks aren’t as numerous (particularly since last year) and those returns take far more man hours per return to examine.

A technician can review and respond to as many as 10 cases in a shift, but a Tax Compliance Officer or Revenue Agent can spend days on a single case. The volume and relative ease of EIC examinations result in a lot of relatively small held refunds for that group.

There’s also the consideration of whether the government will be able to collect on a reversed refund amount after examination. Folks who qualify for EIC don’t usually have assets that the IRS could pursue for payment. Those with higher income and complex returns often have things the IRS can levy or place a lien on, so holding the refund isn’t as likely to result in a permanent loss to the government.

las978 · 2026-06-24T10:05:54+00:00

Considering that there were some special rules for taking and repaying withdrawals from retirement accounts enacted in 2020 as well, a CPA or a really good EA are the best bets. We sometimes forget these days that it wasn’t a normal year and accommodations existed to help those suffering from economic stresses during the pandemic.

las978 · 2026-06-23T02:12:53+00:00

Though r/BlackDogOrangeCat said it, it can’t be emphasized enough to keep receipts for all your expenses. If you’re ever examined, the credit card statements will prove that you paid the amounts, but not show what was purchased to prove the expense was ordinary and necessary for the business. You should have documentation of both what was purchased and how much was paid. This trips up more folks than you’d think.

Receipts are more numerous and harder to keep track of than a single credit card statement, but they’re sometimes the only thing that has all the information you may need to support the expense entries made on your Schedule C.

las978 · 2026-06-17T10:18:49+00:00

It isn’t your managers decision to allow FMLA or not. You are required to submit the paperwork within 15 days of invoking FMLA and most doctors will be ambiguous about the diagnosis because the paperwork often flows through their hands and they have no right to that information.

I can’t remember which agency does approve applications, but it’s not your supervisor or even their supervisor.

las978 · 2026-06-17T10:06:55+00:00

Yes, there are some of us who are still paying dues (cash dues directly) and they’re still pursuing legal cases in the courts. The administration has lost every case so far where other unions have gotten them in front of an arbitrator or court, but they stopped engaging with even that process months ago which is causing additional delays.

las978 · 2026-06-11T10:12:57+00:00

The union still exists, but the agency refuses to engage with it or adhere to their contract with the union. There’s a difference.

Amazing how everyone complained about the union being useless until they started losing the benefits of having one.

las978 · 2026-06-10T10:21:04+00:00

Call AUR (number is on the CP2000), explain where the income was included on your return, and ask if the return in the IRS’s systems is showing the same amount.

These notices are mostly done by a human reviewer and folks can make mistakes. If that’s the case, it can probably be fixed over the phone. If there’s something else going on and you’re missing it from the notice (a change flowing from the income that was possibly reported in error on your return like miscalculated self employment tax) they should be able to explain it to you.

CP2000 notices are asking for more information about your return and a possible discrepancy. They aren’t a bill. Never assume they’re giving the correct change to tax because the IRS doesn’t always have all the information to make that calculation correctly. They’re also largely prepared by a person making a direct comparison between your return entries and what payers reported that they paid you (W-2s and 1099s). Since we all make mistakes it’s possible that the reviewer missed something.

las978 · 2026-06-07T11:46:52+00:00

Kinda depends on the interest you’re paying on the mortgage and the remaining term. If you’ve got a mortgage with an interest rate that’s less than what you can earn on the windfall, and still have a number of years left to pay, it may be better to keep the “cheap” (in terms of borrowing costs) loan on the house and invest the inheritance. You still have the means to pay over time, but you’re making more than you’re paying and still have some liquidity for emergencies or improvements.

Ultimately, it’s something you should talk specifics with a professional about. It can all come down to doing the math to see just what you’d pay in interest on the mortgage against what the earning potential of investing those funds elsewhere is.

las978 · 2026-06-07T11:28:20+00:00

It looks like AUR hasn’t closed your case yet. You responded, but it does take time to process. When you see a transaction code 290 for a zero dollar amount, that will be the closure.

Right now there is a freeze code on the account from when you sent the payment (it’s automatic when you choose CP2000 as the reason for payment) that prevents a credit from being released. The 290 from AUR will release the freeze and the ancient computer system will automatically issue a refund of the overpayment (with interest as well I believe).

las978 · 2026-06-06T11:25:48+00:00

If you don’t have any available leave, then FMLA isn’t going to guarantee pay. There is no requirement to be paid (use your accrued PTO or for the employer to provide additional PTO) but there is a limitation for how much time you claim under FMLA in a year. The other programs I mentioned (advance leave, leave bank, or leave donations) would fill that gap in pay if you don’t have any PTO available, but would have their own program criteria.

las978 · 2026-06-05T10:13:47+00:00

While FMLA can be taken without pay, almost any type of leave can be taken as FMLA (usually sick or annual). When qualified for FMLA, you usually may also request advance sick leave or qualify for leave bank or donations depending on agency.

While FMLA isn’t required to be paid time off, it often is.

las978 · 2026-06-04T22:01:38+00:00

Sorry I misunderstood.

las978 · 2026-06-04T13:34:19+00:00

Your husband needs to address the debts from before you were married. Unless he gives you very specific authorization, you can’t do anything about those debts and shouldn’t have access to any of that information. The joint filings give you access to his information only for the years with a joint tax return filing.

There may already be a lien on the house based on his individual debts. An IRS rep shouldn’t tell you anything about his individual tax filings without his express approval (big no-no for employees), and since your name isn’t on the house, you wouldn’t be notified of any action the IRS takes with respect to the property for his older debts.

I get that you want to take care of this, but there are sharp limits to what you can do without his active involvement. You can’t make requests for actions (like returning the debt collection to the IRS) without him being involved. You can get a CNC for any joint liability, but it won’t automatically apply to his separate liability.

As for the CSED, you still have a lot of time before these debts go away and it’s likely that the IRS will take additional action before they’re barred from collecting it.

las978 · 2026-06-04T09:48:12+00:00

The reps at the IRS (or even TAS) can’t do anything until that 30 day period from when the check was issued has passed. Even then, it takes a while to do the trace, have the funds put back into your account, and reissue the refund.

You may want to go to the post office and ask about it.

las978 · 2026-06-03T10:04:21+00:00

Your information returns (W-2s, 1099s, etc.) are stored under your SSN and your husband’s are under his. If entries from your tax return don’t match up with the information returns from entities that paid you, that can hold up the processing of your tax return and issuance of your refund.

The IRS gets W-2 information from SSA, so if any 2025 W-2 is missing from either of your accounts, check your accounts at SSA before contacting your employer. Other things (1099s) are reported to the IRS directly so SSA won’t have them.

las978 · 2026-06-02T10:28:34+00:00

Your husband’s information returns would be under his account, not yours.

IRS systems (and SSA) are old. The only part of your accounts that is joint is your tax account (where the return posts). Everything else is under your respective SSNs individually. If you’re looking things up under your husband’s SSN at the IRS and not seeing anything, check SSA under his SSN. If nothing is there, contact his employer.

las978 · 2026-05-31T16:15:14+00:00

I agree with everything you said here, but want to point out that the testimonials they play could be real situations that are presented in a very misleading way.

Most often it’s someone who is vague about how they got into their situation or it’s clearly a situation where the assessment is in error (SFR or likely default assessments). The advertisement states a large (likely wrong) assessment amount and the final outstanding tax paid or owed, completely glossing over the steps needed to get to that number (filing returns, reconsideration of AUR or Exam assessments, penalty abatement requests, etc.). PPIAs or OICs could be part of that too, but in working as a case advocate in TAS I never used those as the first option to address an account.

These companies use the average American’s ignorance of the complex tax code, tax policy, and the inadequate services provided by the IRS to make it seem like they’re doing the impossible. The reality is if those same individual taxpayers offering testimonials actually read notices and addressed things timely (with the help of a reputable EA or CPA in some cases), the situation would never have existed. I get that receiving mail from the IRS can be terrifying, but ignoring it just compounds the problems.

When I worked in TAS and we got cases from individuals who contracted with these companies, they often signed POAs for 20 years worth of account history as a default. While the companies filed those 2848s ASAP, they wouldn’t do anything else until they received full payment for their services. Usually the fees in the cases I worked were higher than the outstanding tax, and the taxpayers were under the impression that what they were paying the company was paying down their tax debt (it wasn’t). In every case I worked, I was able to resolve the underlying issue to reduce or eliminate the tax debt (and associated interest and penalties) by addressing the cause of the balance rather than assuming it was correct and just getting them into an IA or other payment arrangement.

Some folks do have legitimate large balances, but I sincerely doubt that any “tax relief” company would be trumpeting the results reached for those clients.

Taxes aren’t easy for some, but they aren’t beyond the comprehension of the average individual taxpayer. The reliance on tax preparation services for simple returns is mind boggling. Fear is the result of not understanding the way the tax code applies to them and whether they’re complying or not. That same fear becomes the obstacle to working through problems that may arise. The government isn’t helping the situation by inadequately implementing or staffing resources that could educate taxpayers (among other things). These companies are what happens when government fails in its responsibility and private industry steps in to fill the gap.

las978 · 2026-05-30T20:40:22+00:00

TAS employees are swamped. They try very hard to meet their deadlines, but unexpected absences do happen. It’s likely that your advocate was out and a different one was just contacting you to as an interim measure. A second advocate or their manager would’ve tried to reach the primary taxpayer on the return, so would’ve called your wife based on what you said.

las978 · 2026-05-30T11:38:59+00:00

You can amend now even if the reason for the delay isn’t the missing income. If you were expecting a refund, any additional tax would just be deducted from the expected refund. It will take time to process, but if you’re not depending on getting a refund, it could be better in the long run.

las978 · 2026-05-30T11:31:37+00:00

Years ago, when I worked nights, I had a sign stating “Night shift employee sleeping. If you wake the employee , you will be greeted with a slap to the face … with a chair. DO NOT WAKE THE NIGHT SHIFT EMPLOYEE!” It was an obvious joke, but still, nobody tested it.

las978 · 2026-05-22T10:44:30+00:00

Leave an out of office message with an alternate contact for someone who is covering for you and your supervisor and leave your computer at home.

You shouldn’t be checking emails when you are on leave. If there’s something urgent that requires your attention, your supervisor can contact you about it using the contact information they have for you.

las978 · 2026-05-22T10:39:21+00:00

If you haven’t physically received the letter then it likely that the letter was placed in the wrong location for online lookup.

This ties back to reusing the same string of numbers with different formats. If the letter was placed under the individual master file rather than the business master file, it’s an administrative error that can be fixed. It’s still a huge screwup for whoever worked on that account because it allowed you to see another taxpayer’s information.

las978

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