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The tax software wont let you claim the child tax credit for her if you indicate your spouse is claiming her, but you can still get other benefits as the custodial parent. Its confusing but actually works out better financially for most couples this way.
This whole thread has been super helpful! I'm dealing with a similar situation where my ex-wife and I share custody but she claims our son as a dependent. Reading through all these responses, I'm realizing I might be missing out on Head of Household status and other credits I'm entitled to as the custodial parent. Quick question for those who've been through this - does the IRS ever question why two parents from the same household are filing with different statuses? Like if I file as Head of Household and my wife files separately claiming our daughter as a dependent? I'm worried it might trigger some kind of red flag in their system even though it sounds like this is totally legitimate. Also seeing a lot of mentions of Form 8332 - is this something that needs to be filed every year or just once when you first make the agreement?
Great questions! To answer your concerns: The IRS doesn't flag returns just because parents file with different statuses - they actually expect this in separated/divorced households. As long as you're following the rules (custodial parent can claim HoH, non-custodial parent claims dependent with proper forms), you're totally fine. For Form 8332, it depends on how you fill it out. You can either specify specific years OR check the box that says "all future years" - most people do the latter so they don't have to file it annually. Just make sure both parents keep copies! Definitely look into those credits you might be missing - HoH status alone can save you hundreds, and EIC could be even more depending on your income. The IRS systems are set up to handle split custody situations, so don't worry about red flags if you're doing everything correctly.
I've been filing taxes for 15+ years and have noticed significant variation in acceptance times. Here's what I've observed: Step 1: Understand that "acceptance" just means the IRS received your return with no obvious errors - not that they've processed it Step 2: Check your tax software's status page (not just email) as they often have more detailed information Step 3: If it's been more than 48 hours, look for any rejection notices that might have gone to spam Step 4: After 72 hours with no update, contact your tax software support first, then consider contacting the IRS I filed on January 29th this year and it took 26 hours for acceptance - much longer than previous years but everything was fine.
Thank god someone explained this clearly! I've been panicking because I'm at hour 30 with no acceptance. Was already imagining audits and penalties and all kinds of nightmares. Going to follow your steps and just be patient a bit longer.
I'm experiencing the exact same thing! Filed my return through FreeTaxUSA on Tuesday and it's now Friday with still no acceptance notification. In previous years, I'd get that green checkmark within an hour or two max. This waiting game is driving me nuts because I have some major expenses coming up and was counting on getting my refund processed quickly. Has anyone tried checking the IRS "Where's My Refund" tool during this limbo period? I'm wondering if it shows anything useful before the official acceptance comes through, or if it just says "return not found" until acceptance happens. Really hoping this is just the new normal with their enhanced security measures and not some system-wide issue that's going to delay the entire season!
I checked the "Where's My Refund" tool while waiting for acceptance and it just showed "return not found" until I got the official acceptance email. Don't stress too much about checking it during this phase - it won't update until the IRS officially accepts your return first. I'm also using FreeTaxUSA this year and noticed their status page sometimes has more details than just waiting for the email notification. Have you tried logging into your FreeTaxUSA account to see if there's any additional status info there?
I work in HR for a mid-sized company and we've been addressing this issue with our remote employees. Here's what many don't realize: employers can set up an "accountable plan" to reimburse employees for legitimate business expenses including home office costs. These reimbursements aren't taxable to employees and are deductible by the company. This can include partial internet, phone, supplies, and even a reasonable allocation of rent/mortgage for dedicated workspace. The key is proper documentation and business necessity. Instead of hoping for tax law changes in 2026, talk to your HR department about implementing an accountable plan. Many companies don't do this simply because they don't know it's an option. We implemented one last year and it's been a win-win - employees get tax-free reimbursements and we get the deduction plus happier remote workers.
Our HR department keeps saying they "don't have the bandwidth" to set up anything like this. Is there a simple template or explanation I could bring them? Any idea roughly what percentage of home internet/utilities is typically covered in these accountable plans? I'm trying to come with a specific proposal rather than a vague request.
Yes, the IRS publication 463 covers accountable plans and can be referenced. For a simple template, many payroll providers (ADP, Paychex, etc.) have standard forms. For internet/utilities, most companies I've worked with typically approve 30-50% of internet costs for full-time remote workers. Start with a specific proposal of what you're seeking reimbursement for and approximate amounts. For internet, calculate your monthly cost and request half if you use it significantly for work. Include any one-time costs like ergonomic equipment. HR departments respond better to specific, reasonable requests with clear documentation requirements than open-ended programs they have to design from scratch.
Just an FYI - I've been a 1099 contractor for years and the home office deduction isn't the amazing tax saver many W2 employees think it is. You have to use the space EXCLUSIVELY for business - meaning no personal use whatsoever. The IRS is pretty strict about this. Plus, if you claim depreciation on your home through this deduction and then sell your house, you might face recapture taxes on the depreciation taken. It complicates home sales significantly. For most W2 employees, even if the deduction comes back, the 2% AGI floor that was mentioned above meant many couldn't actually benefit. And with the higher standard deduction now, even fewer would itemize enough to see any benefit. Don't make remote work decisions based on tax deductions that might return in 2026. There are much better reasons to work remotely than potential tax benefits that might not materialize or benefit you.
Thanks for the reality check. I hadn't considered the exclusive use requirement or the home sale complications. Does this exclusive use requirement also apply to the simplified method (the $5 per square foot deduction)? And does claiming home office expenses increase audit risk significantly?
Yes, the exclusive use requirement applies to both the simplified method and the actual expense method. Even with the $5 per square foot deduction (capped at 300 sq ft), that space must still be used exclusively for business purposes. Regarding audit risk, home office deductions have historically been a red flag for the IRS, especially for higher income taxpayers or when the claimed office space seems disproportionate to income. The simplified method was partly introduced to reduce this scrutiny, but any home office deduction still gets extra attention. For W2 employees considering this if the deduction returns, remember you'd also need to itemize deductions rather than take the standard deduction, AND your miscellaneous itemized deductions would need to exceed 2% of your AGI. With the current standard deduction being $13,850 for single filers, most people are better off with the standard deduction anyway.
Just FYI - if you're a frequent gambler, you should keep a gambling diary or log for ALL your gambling activities (wins AND losses). Document dates, locations, type of gambling, amounts, witnesses if possible. The IRS allows you to deduct losses up to the amount of your winnings, but only if you itemize deductions AND have proof of those losses. Without documentation, you can't claim the losses but still have to report all the winnings.
Thanks for this tip! Do casino loyalty cards help with tracking for tax purposes? I always use mine when I gamble.
Casino loyalty cards can definitely help as supporting evidence, especially at casinos that provide win/loss statements at year-end based on your card usage. However, these statements aren't considered complete documentation by themselves since they only track play when your card is inserted. For complete documentation, you should still maintain your own gambling diary with dates, locations, and specific session results. The IRS wants to see contemporary records created at or near the time of gambling. Your personal log combined with loyalty card statements provides much stronger documentation if you're ever audited.
One thing nobody mentioned - even if you get a W-2G with taxes already withheld, the amount withheld is usually only 24% (federal backup withholding rate). If you're in a higher tax bracket, you might still owe more when you file! Had this happen to me last year with a $15k slot win. Was shocked when I still owed another $1,700 at tax time even though they'd already withheld like $3,600!
Yep, happened to me too! Plus some states require state income tax that isn't withheld on the W-2G, so you might get hit with that too.
This is such an important point that catches so many people off guard! The 24% withholding is really just a flat rate that doesn't account for your actual tax situation. If you're in the 32% or 35% bracket, or if you have other income that pushes you into a higher bracket, that withholding won't be nearly enough. It's definitely smart to set aside some of those winnings for the potential tax bill come April!
StarStrider
Has anyone successfully back filed using TurboTax or similar software? Can I still download the older versions somewhere?
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Ravi Gupta
ā¢You can definitely use software like TurboTax for prior years! They keep old versions available, though you might have to pay for them separately. I did my 2021 and 2022 returns this way a few months ago. Just remember you'll still need to print and mail the completed returns since e-filing is closed for those years.
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Axel Far
Don't feel embarrassed about this situation - you're definitely not alone! I was in a very similar spot a few years ago and successfully got everything sorted out. One thing that really helped me was creating a simple spreadsheet to track each year I needed to file. I listed out 2021, 2022, and 2023, then made columns for "Documents Collected," "Return Prepared," "Return Mailed," and "Confirmation Received." It kept me organized and made the whole process feel less overwhelming. Since you mentioned you have all your W-2s, you're already ahead of where I was! Make sure to also gather any 1099 forms (for freelance work, bank interest, etc.), receipts for deductions you might claim, and records of any estimated tax payments you might have made. The key thing to remember is that filing late is always better than not filing at all. Even if there are penalties, getting compliant with the IRS will put you in a much better position going forward. And yes, you can absolutely file your 2024 return now while working on the back filing - they're completely separate processes. Good luck with getting everything caught up! You've got this.
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