Has anyone used TurboTax to handle this marketplace allocation situation? I'm dealing with the same thing and don't know where to even enter this information.

I went through this exact scenario two years ago and it was so confusing at first! The key thing that helped me understand it was realizing that even though you're not a dependent, you were still covered under a policy in your mom's name, which creates this "shared policy" situation. Here's what worked for us: My mom (the policy holder) filed Form 8962 and allocated 100% to herself since her income was much lower and she qualified for more premium tax credit. I then filed my own Form 8962 showing 0% allocated to me. This saved us about $600 compared to splitting it 50/50. The IRS accepts this as long as both people file Form 8962 with matching allocation percentages that add up to 100%. Since you mentioned your mom is unemployed and you worked full-time, allocating more to her will likely result in less money owed overall due to the income-based credit calculation. Just make sure you both keep copies of the 1095-A and coordinate on the allocation percentages before filing!

Does anyone know if keeping a spreadsheet of your contributions is acceptable as proof if you get audited? I've been tracking mine carefully but don't have all the original contribution receipts.

I went through this exact same situation a few years ago and learned some hard lessons. The key thing to understand is that your basis for Form 8606 Line 2 is NOT the same as the cost basis on your brokerage statement. Your brokerage's cost basis includes market fluctuations and investment gains/losses, while the IRS basis is purely the sum of your nondeductible contributions. Here's what I'd recommend: Start by checking if you have any old tax returns saved electronically. If you filed Form 8606 in previous years, Line 14 from your most recent filing should show your cumulative basis - that number rolls forward to become Line 2 on this year's form. If you can't find your old returns, the IRS transcript route mentioned earlier is your best bet. You can get them free online at irs.gov or by calling. The transcripts will show your previously reported nondeductible contributions. One more tip: Keep meticulous records going forward! I now keep a simple spreadsheet with contribution dates, amounts, and form references. It's saved me hours during tax season.

This is really helpful information! I had no idea about the $600 threshold rule. I'm in a similar situation - took two online courses last semester totaling around $480 and was wondering why I hadn't received my 1098-T yet. My tax software kept asking for it and I was getting worried I was missing something important. Good to know I can still claim the Lifetime Learning Credit with just my payment receipts. I have all my transactions saved from my student account portal, so I should be all set. Thanks for posting this question - probably saved me a lot of stress and confusion!

This thread has been incredibly helpful! I work in tax prep and see this confusion all the time. Just want to clarify a few key points for anyone else reading: 1. The $600 threshold is specifically for the INSTITUTION'S requirement to issue the form, not your eligibility to claim education credits 2. Keep all your payment records - receipts, bank statements, student account summaries. The IRS may ask for documentation during an audit 3. Make sure your expenses actually qualify - tuition and required fees yes, but things like room/board, transportation, and optional materials usually don't count for the credits 4. If you're part-time or taking just a few classes, the Lifetime Learning Credit is often better than the American Opportunity Credit since it doesn't have the "at least half-time" requirement Don't let the missing 1098-T stop you from claiming legitimate education expenses. The credit can be worth up to $2,000 for the Lifetime Learning Credit, so it's definitely worth pursuing if you qualify!

I had a very similar situation with my RSUs from Microsoft that went through Fidelity. What I discovered after a lot of digging is that the $110k that was "withheld" from your stock sale likely wasn't traditional tax withholding at all - it was probably shares that were automatically sold to cover your tax obligation at vesting. Here's what probably happened: When your RSUs vested, your company calculated the taxes owed on the $450k value and instructed Fidelity to sell enough shares to cover that amount. Those proceeds were then sent to the IRS as estimated tax payments on your behalf. The key difference is that these don't show up as "withholdings" on your W-2 because they're not payroll withholdings. Instead, look for: 1. A statement from Fidelity showing "shares sold for tax withholding" or similar language 2. Your employer's year-end statement that might show "estimated tax payments made" 3. Any Form 1099-MISC that shows payments made to the government When you file your taxes, you'll need to enter that $110k as estimated tax payments, not rely on W-2 withholding. This is completely normal with RSUs but definitely confusing the first time you encounter it!

I'm a tax preparer and see this confusion with RSUs constantly! You're absolutely right to be concerned, but this is actually a very common reporting issue that trips up many people. What's happening is that your employer correctly reported the full RSU income ($450k) on your W-2, but the "tax withholding" that occurred when you sold the shares through Fidelity is technically not payroll withholding - it's an estimated tax payment made on your behalf. Here's what you need to do: 1. Log into your Fidelity account and look for any document or transaction history showing "tax payment," "withholding sale," or "sell to cover taxes" 2. Check with your employer's HR/payroll department - they should have records of estimated tax payments made for RSU transactions 3. Look for any supplemental tax documents beyond just your W-2 and 1099-B When you file your return, you'll enter that $110k as estimated tax payments rather than as W-2 withholding. This is completely normal and legitimate - you're not missing any withholding, it's just reported differently than regular payroll taxes. The good news is that if those payments were actually made to the IRS, you're not behind on taxes at all - you just need to make sure they're properly accounted for on your return. Don't panic! This is a reporting issue, not a tax debt issue.

I've been researching this same question and found that FreeTaxUSA is actually quite transparent about their revenue streams. They're not "free" in the traditional sense - they use a freemium model where federal filing is free but they charge for state returns ($14.99), premium features like audit support ($14.99), and earn affiliate commissions from financial products they recommend. What's reassuring is that they're required to follow IRS Publication 1075 guidelines for data protection, and their privacy policy explicitly states they don't sell personally identifiable tax information to third parties. The IRS can revoke authorization from e-file providers who don't comply with security standards, so there's real oversight. I ended up choosing them over TurboTax last year and was impressed by the lack of aggressive upselling during the filing process. They clearly state what's included in the free version versus paid upgrades, unlike some competitors that hit you with surprise fees halfway through filing. The interface is clean and straightforward, though not quite as polished as premium alternatives. For data security, I haven't experienced any suspicious marketing calls or emails that I could trace back to them, which suggests they're handling personal information responsibly. The main trade-off is slower customer support during peak tax season, but for most standard returns the software is intuitive enough that you won't need much assistance.

As a tax preparer who's worked with various software platforms, I can confirm that FreeTaxUSA is legitimate and their business model is actually quite straightforward. They make money through three main channels: state filing fees ($14.99 per state), premium add-ons like audit defense and amended return support, and affiliate partnerships with financial institutions. What makes them trustworthy is their IRS Authorized e-file Provider status, which requires meeting stringent security standards under Publication 1075. The IRS regularly audits these providers and can revoke authorization for non-compliance, so there's real regulatory oversight. From a data protection standpoint, they use 256-bit SSL encryption (same as banks) and are required to report any data breaches to the IRS within 24 hours. Their privacy policy clearly states they don't sell personal tax information to third parties - this would actually violate federal regulations and could result in serious penalties. The key difference from sketchy "free" services is transparency. FreeTaxUSA clearly explains what's free (federal filing) versus paid (state returns, premium features) upfront, rather than hiding costs or monetizing through data sales. I've recommended them to clients with straightforward returns who want to save money without compromising security. One tip: if you're nervous about any tax software, you can always prepare your return but delay e-filing until you're confident everything looks correct. This lets you test the platform without committing.