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And tax pros can expect millions of phone calls about this. https://www.irs.gov/newsroom/13-point-9-million-americans-to-receive-irs-tax-refund-interest-taxable-payments-to-average-18-dollars

Y'all have basically reenforced what I thought. She needs to have a chat with the folks who handle these accounts and get a new account set up. I've got as much as I can now take care of and I ain't gonna do it. And this wireless keyboard is causing more spelling errors than I can deal with !!!

I can NEVER understand why they don't just pay a lower interest rate and call it tax-exempt interest. It would save everyone involved (IRS, taxpayers, and us poor overwhelmed preparers) SO much grief! And I answered my own query here: it would make SENSE, so they CAN'T do it that way! lol.

She can choose mileage. Or, she can choose actual expenses. Either way, she needs to know the business mileage and total mileage. If the corporation owns the vehicle, it must include her personal usage on her W-2. If she owns the vehicle, she'll want the corporation to establish an accountable plan so she can turn in expense accounts and get reimbursed for business mileage. The reimbursements will NOT be income to her but WILL be deductions to the corporation. She can buy or lease a vehicle. The corporation can buy or lease a vehicle. WHERE did she hear that she has to pay off all the rest of her cars? If the finance company, maybe she has too much credit outstanding to get a good loan on yet another car. How many cars does she have?!

Interesting, I paper filed an amended 2018 1040 for a client in late March. She received her federal refund check plus interest a month ago. However she is still waiting for her Oregon refund. Even in years past I remember amended returns taking over 4 months

The instructions to form 8863 cover certain circumstances when the college or university doesn't have to issue a 1098-T and says that it is possible to use those expenses for the education credits, and it lists what other documentation would be required. Expect the IRS to question the credit without a 1098-T from the second school. cbslee is correct - no AOC for non-degree programs As for your questions - #1 - yes, sometimes it works like this. If the 529 is in the son's name, he reports the distribution on his return, and whoever claims the dependent with the education expenses claims the credit. In this case, it would be the lifetime learning credit. No double dip on this - the same qualified education expenses can't be used for the credit and to offset the 529 distribution. The education credit on mom's return probably gives a bigger tax benefit that the offset to the 529, so apply the expenses toward the credit on mom's return first before using any against the 529 on the son's return. The last one I had like this, the parents income was so high that all education credit would have phased out so all of it went toward reducing the 529 on the child's return. #2 - see my answer at the start of this post.

You know sometimes these colleges get on my last nerve. The 1098-T is an important form. While I always recommend seeing receipts and statements from the bursar's office the 1098-T is important. If the son has not claimed himself and has no education credits on his return, mom should be able to claim the AOC because the son has not completed the first four years of school according to your post. If the son is over 24 and mom and he still qualifies as a dependent on mom's return then you should be able to claim the LLC. I am saying this without knowing all of the detail so I could be incorrect based on the circumstances.