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My wife and I are married filing jointly. She has been a full-time undergraduate student in Spring 2025 and a half-time undergraduate student in Fall 2025. She receives VA Chaper 35 benefits, which are deposited into her account directly every month (basic housing allowance). She withdrew $3,000 from her IRA at the beginning of 2025. We live together in an apartment. Her university does not offer on-campus housing, but lists the cost for housing and food as $7,500 per year in their cost of attendance overview.   Can we avoid the 10% penalty for the early IRA withdrawal on grounds that it was used for education expenses? Since she was at least half-time for both spring and fall, and the amount the university lists for housing and food is greater than the withdrawal, it should be possible. I know that the VA housing allowance does not need to be reported as taxable income or need to be considered when adjusting the qualified expenses for purposes of claiming the American Opportunity Tax Credit (which we will want to claim for the expenses on her 1098-T). But I was wondering whether the VA benefits would preclude us from claiming room and board expenses to avoid the 10% penalty. I know the IRA withdrawal will be taxed as ordinary income regardless.   Thank you in advance!

Is the same issue others are having - a bug?   It was my return from two years ago when I lived in FL that the original Special Depreciation Allowance was used.  This year residence is  CO, but don't think that should matter related to this.  I can access the form but cannot un check the Red 'X' and choose 'N/A' to turn off the error.  I think it would make sense to just turn off the error by choosing N/A because I received the special allowance already 2 years ago.  Anyone have answers?    

I was in a research seminar class where I received a stipend. It was not a paid internship. Therefore, I received a 1099-NEC, but did not receive a W-2.   When prompted, should I list myself as "business--self-employed", even though I was not actually self-employed?

Every person who bought Turbo Tax 2025 and has or will have their taxes rejected by IRS and State needs to be calling Turbo Tax ASAP to get them to meet the needs of their paying customers.  Turbo Tax must upload the completed approved IRS for 8283 right now.  Most of us will find a new source for next year and we need to make TURBO wake up and meet our needs or they need to not sell their products until they are ready to use.