just fyi, the whole "am i dependent or not" question is different from whether u can claim the credit. if ur parents provided more than half ur support (including housing!!) for the yr then ur still a dependent regardless of if ur working full-time a lot of ppl miss this. the rules r kinda complicated but basically u need to add up ALL support (housing, food, tuition, insurance, etc) and if u paid for more than 50% urself, then ur independent. if not, then ur folks can still claim u as a dependent.

You're right to be cautious about not wanting to do anything fraudulent! The key thing to understand is that the American Opportunity Credit has a lifetime limit of 4 tax years per student, regardless of who claims it. Since you graduated in May 2022 and your parents claimed the credit from 2018-2021, that's potentially all 4 years already used up. However, you'll need to verify exactly which years they actually claimed it for you. Also, just because you're working full-time doesn't automatically make you independent for tax purposes. You'll need to calculate whether you provided more than half of your own support for the entire year - and that includes the fair rental value of the housing your parents provide. If they're covering your housing costs, that could be a significant portion of your total support. I'd recommend getting copies of your parents' tax returns for those years (2018-2021) to see exactly when the AOC was claimed. If they haven't used all 4 years, and you truly qualify as independent, then you might be eligible. But given that you graduated, you also need to make sure you were enrolled in an eligible program during 2022 to claim the credit for that year.

This is such a valuable discussion! I'm dealing with this exact situation and appreciate everyone sharing their experiences. I have a portfolio of Treasury securities including some I-bonds, regular Treasury notes, and a few Treasury bills I bought at discount through my broker. What's been really helpful from reading through all these comments is understanding that the state tax exemption applies to ALL income from Treasury securities, not just the obvious interest payments. I was definitely confused about the market discount portion, and my tax software (TaxAct) seems to be including it on my state return incorrectly. One thing I'm curious about - do I-bonds follow the same rules? I know they have that inflation adjustment component, and I'm wondering if both the fixed rate and the inflation adjustment portions are exempt from state tax. Also, I've been deferring the tax on my I-bonds until redemption - when I eventually cash them in, should that entire amount (original purchase price plus all accrued interest) be excluded from my state return? It sounds like I need to do a comprehensive review of my state return to make sure I'm excluding everything I should be. The tip about adding up ALL Treasury income and ensuring the total exclusion matches is going to be really useful for my situation.

This thread has been incredibly helpful! I'm a tax professional who often gets questions about Treasury securities and state taxation, and I wanted to add a few practical points based on what I've seen in practice. First, you're all absolutely correct that both coupon interest AND market discount from US Treasuries should be exempt from state income tax. The constitutional protection against state taxation of federal obligations is comprehensive and covers all forms of income derived from these securities. However, I want to emphasize something that several people touched on - the biggest challenge isn't usually determining what should be exempt, but rather figuring out HOW to properly report the exemption on your specific state's forms. Each state handles this differently, and tax software often misses the market discount portion. A few additional tips from my experience: 1. **Documentation is key** - Keep detailed records of all your Treasury purchases, especially those bought at discount. You may need this if your state ever questions the exemption. 2. **Don't forget about mutual funds** - If you own Treasury-focused mutual funds or ETFs, the Treasury interest they pass through to you should also be exempt from state tax, but this often gets overlooked. 3. **Estimated taxes** - If you have significant Treasury holdings, make sure you're not overpaying estimated state taxes throughout the year. Many people forget to account for the exemption when calculating their quarterly payments. The tools mentioned here (taxr.ai for analysis and Claimyr for reaching state tax departments) sound like excellent resources for anyone dealing with complex Treasury income situations. When in doubt, it's always worth getting confirmation from your state tax authority rather than potentially overpaying.

This thread has been incredibly helpful! I've been putting off dealing with my amendment situation for weeks because I was dreading the potential costs and complexity. Based on everyone's experiences here, I think I have a solid game plan now: 1. First, I'll try TaxAct's free amendment feature since my situation is straightforward (just need to add a 1099-INT I received late) 2. If that doesn't work out, I'll go with FreeTaxUSA's Deluxe upgrade knowing that $7.99 is still reasonable compared to other services 3. As a last resort, I might try the Free File Fillable Forms if I'm feeling confident about doing it manually I really appreciate everyone sharing their real experiences rather than just speculation. The specific details about TaxAct's free tier handling simple amendments and FreeTaxUSA's Deluxe package including audit assistance really help with making an informed decision. One quick question for the group - has anyone dealt with amending when you have both federal and state returns? I'm wondering if the state amendment process is similarly complicated across different platforms, or if most states have their own free amendment options I should be aware of.

I just went through this exact situation last month! You're right that FreeTaxUSA's website is frustratingly vague about amendment costs. I can confirm what others have said - you definitely need the Deluxe upgrade ($7.99) to file federal amendments through FreeTaxUSA. However, before you pay anything, I'd strongly recommend checking if you actually need to amend at all. Sometimes what feels like a "mistake" doesn't actually require an amendment - for example, if you forgot to report bank interest under $10, the IRS often just sends a correction notice rather than requiring you to file an amendment. If you do need to amend, the TaxAct free option mentioned above is definitely worth trying first. I have a friend who successfully amended through their free tier last year for a forgotten 1099-MISC. The interface isn't as polished as FreeTaxUSA, but it gets the job done for simple amendments. What specific information did you forget to include? That might help determine whether an amendment is actually necessary or if there are other options to consider.

Another important thing about lottery timing - if you take the annuity option (payments over 30 years), you'll pay taxes on each payment as you receive it. This can sometimes be better than taking the lump sum because: 1) You might stay in lower tax brackets across multiple years 2) You protect yourself from spending it all at once 3) The total payout is actually significantly higher

Great question! I've been wondering about this too. One thing I'd add is that you should definitely consider making quarterly estimated tax payments once you claim, especially for large winnings. The IRS expects payment throughout the year, not just at filing time. If you win big and don't make estimated payments, you could face underpayment penalties even if you pay the full amount when you file your return. The standard withholding might not be enough to cover your actual tax liability, especially if the winnings push you into higher brackets. Also, don't forget about the "kiddie tax" if you're planning to gift any winnings to children - there are special rules that might apply. Definitely worth consulting a tax professional for the big wins!

This is such valuable information to share! As someone who just went through tax season myself, I can definitely relate to the stress of wondering if you're doing everything correctly. I had a similar situation where I was second-guessing whether to use our joint account or my individual account for the refund. Your pizza delivery analogy really puts it in perspective - the IRS just wants to get the money delivered to a valid address, they're not checking who's home to receive it! It's really helpful when experienced community members share these practical insights. Tax season is stressful enough without worrying about technicalities that turn out to be non-issues. Thanks for taking the time to educate the rest of us! Did you end up getting your refund processed without any delays using your individual account?

This is exactly the kind of practical advice that saves so much unnecessary stress! I went through the same mental gymnastics last year when filing our joint return. I kept staring at my individual account info thinking "this can't be right" but was too lazy to dig out our joint account checkbook from wherever my spouse buried it. 😅 What really helped me feel confident was realizing that millions of married couples probably face this exact scenario every year - one spouse handles the taxes, uses the account info they have handy, and life goes on. The IRS isn't running some sophisticated name-matching algorithm on every single refund deposit. Your analogy about the pizza delivery is perfect! The delivery driver doesn't care if John ordered it but Jane answers the door - they just want to complete the delivery successfully. Same with the IRS - they want to get your money to you efficiently, not play detective about whose name is on what account. Thanks for sharing this insight and hopefully saving other people from the same unnecessary worry spiral!