Kinda off-topic but important for your FAFSA issue - have you considered asking your school about a "Dependency Override" for financial aid purposes? Even if your parents claim you on taxes, FAFSA might still consider you independent in special circumstances. I work in a college financial aid office, and we process these for students who have unusual situations with parents. You'd need to document why you can't provide parent info (their refusal to file taxes might qualify). Each school handles this differently, but it's worth asking about. This wouldn't affect your tax situation, just how FAFSA views your dependency status for aid purposes.

As someone who works with tax compliance, I want to emphasize that your parents really need to prioritize getting their back taxes filed ASAP. The longer they wait, the more penalties and interest accumulate - we're talking potentially thousands of dollars in additional costs. For your specific situation, the dependency status change is totally normal and legal. What matters for 2024 is whether you meet the dependency tests for that year - age (under 19 or under 24 if full-time student), residency (living with them more than half the year), and support (they provide more than half). One thing to watch out for: if your parents do claim you as a dependent for 2024, make sure YOU don't also claim your personal exemption when you file. This is a common mistake that triggers IRS matching programs and can delay processing for both returns. Also, document everything about your living situation and support provided. If there's ever a question about the dependency claim, you'll want records showing when you moved back home, what expenses your parents covered, etc. The FAFSA dependency override mentioned by Lucas is definitely worth exploring - that could solve your financial aid issues even if the tax situation stays complicated.

As someone who went through a similar family home purchase situation, I'd recommend getting everything properly documented upfront rather than trying to fix issues later. We ended up using a real estate attorney who specialized in seller financing to draft our promissory note and ensure we met AFR requirements. One thing that really helped us was looking at the AFR rates for different loan terms. Since you mentioned affordability concerns, you might consider a longer-term loan (over 9 years) since the AFR for long-term loans is often the most favorable. The current long-term AFR is around 4.2%, which is still significantly better than conventional mortgage rates. Also, make sure your cousin understands they'll need to report the interest income on their tax return each year, even if you're making principal-only payments in some months. Having a clear payment schedule that shows both principal and interest portions will make tax reporting much easier for everyone involved. The peace of mind from knowing everything is compliant is worth the extra effort upfront, especially when family relationships are involved.

I've been through this exact situation as both a buyer and seller in family transactions, and I want to emphasize something that hasn't been mentioned enough: documentation is absolutely critical, but it doesn't have to break the bank. For finding the right attorney, I'd suggest contacting your state bar association - they often have referral services where you can specify "seller financing" or "owner financing" as your need. Real estate investment groups in your area are also great resources since their members frequently use these arrangements. Cost-wise, expect to pay $500-1500 for proper documentation depending on your area. Yes, it's an upfront expense on teacher salaries, but consider it insurance against much bigger problems later. A template might save money initially, but if the IRS questions your arrangement, the cost of fixing issues retroactively will be far higher. One practical tip: ask the attorney to structure the promissory note with monthly payments that include both principal and interest at exactly the current AFR rate. This makes tax reporting straightforward for your cousin and creates a clear paper trail showing legitimate loan activity rather than a disguised gift. Also, make sure you and your cousin both keep detailed records of all payments made and received. The IRS loves to see consistent payment history when reviewing family loans.

As a newcomer to this community, I found this discussion really enlightening! I was actually in a similar boat a few months ago when my husband started Venmo-ing me his share of our monthly expenses. I was worried about the same tax implications you mentioned. After doing some research and talking to a tax professional, I learned that these kinds of transfers between spouses are completely normal and not taxable. The key thing is that you're not receiving "income" - your wife is just reimbursing you for her portion of expenses you've already paid. It's no different than if she handed you cash or wrote you a check. The memo line suggestion from others here is great - we started doing "rent share," "utilities," etc. and it makes our records much cleaner. But honestly, even without that level of documentation, the IRS understands that married couples share financial responsibilities in all kinds of ways. You're definitely not overthinking it by wanting to be careful, but you can rest easy knowing this is completely standard and not something the IRS would flag as taxable income!

As someone new to this community, I really appreciate how helpful everyone has been in this thread! I'm actually dealing with a very similar situation - my spouse and I just bought our first home together and we've been figuring out how to handle the shared expenses. Reading through all these responses has been incredibly reassuring. I was getting worried about the same thing when my partner started sending me regular Venmo payments for their share of the mortgage and utilities. The consistent advice from multiple people (including the banking professional) that these spousal reimbursements aren't taxable income really puts my mind at ease. I love the practical suggestions too - adding clear memo descriptions and potentially setting up a joint account for household expenses both sound like smart approaches. It's great to see a community where people share real experiences and actionable advice rather than just generic information. Thanks to everyone who contributed to this discussion - it's exactly the kind of guidance new homeowners like us need!

Has anyone considered that the parents might be claiming OP as a dependent incorrectly? If you're 27 and making $24,500, you're definitely not a qualifying child, and probably not a qualifying relative either unless you live with them.

This is exactly why I always recommend people get their own tax transcript before letting anyone else handle their taxes. You can request it for free from the IRS website (irs.gov) and it will show you exactly what has been filed under your Social Security number in previous years. If your parents have been claiming you as a dependent when they shouldn't be, that could explain the pushiness. They might be panicking about potential issues if you file independently this year. At your age and income level, you should definitely be filing your own return and claiming your own personal exemption. The good news is that even if there's been an issue in past years, you can still file correctly going forward. If both you and your parents accidentally claim you in the same year, the IRS will send letters to both parties to resolve it - it's not uncommon and they have processes to handle it.

Another option to consider is using the charging tracking features that come built into many EV chargers now. I have a ChargePoint Home Flex that tracks all my charging sessions automatically in their app, including kWh used and time of charging. My tax guy said this is perfectly acceptable documentation as long as I export the data regularly and note which sessions were for my business vehicle. The app lets me categorize charges and export detailed reports that show exactly how much electricity was used. Might be easier than installing a separate meter if you're planning to get a new charger anyway.

This is a great question and you're definitely on the right track with your thinking! As someone who's been navigating business vehicle expenses for a few years now, I can confirm that tracking your home EV charging costs is absolutely legitimate when you're using the actual expense method. The kWh meter approach you're considering is spot-on. I'd recommend getting one that plugs in between your charger and the wall outlet - they're pretty affordable (usually $20-40) and give you precise readings. Just make sure it can handle the amperage of your charger. For your log, I'd suggest tracking: - Date and time of each charge - kWh used (from your meter) - Odometer reading or trip purpose - Your electric rate at time of charge (some utilities have variable rates) One thing to consider is whether your utility company offers special EV charging rates or time-of-use pricing. Mine has cheaper overnight rates, so I charge during those hours and note the lower rate in my log for more accurate deductions. The documentation you're planning should definitely satisfy IRS requirements, especially since it's more detailed than what many businesses maintain for other utilities. Keep those records organized with your other vehicle expense documentation and you'll be all set!