Honestly from what you described it sounds like you qualify as Head of Household AND should claim the child, but run the numbers both ways! I helped my sister and her bf figure this out - they entered their info in TurboTax both ways (her claiming vs him claiming) and there was a $1200 difference in their combined refund amount. Tax software makes it easy to check both scenarios.

Based on your situation, you have a few key decisions to make that could significantly impact your tax benefits. Since you own the home, pay most expenses, and your daughter lives with you more than half the year, you likely qualify for Head of Household filing status - which is much better than Single. However, the bigger question is who should claim your daughter as a dependent. With your girlfriend's income at $18K, she might benefit more from claiming the child due to the Earned Income Credit, which phases out at higher incomes like yours. The EITC can be worth several thousand dollars for someone at her income level with a qualifying child. I'd strongly recommend running the numbers both ways before deciding. You could use tax software to calculate your combined household refund under both scenarios (you claiming her vs. your girlfriend claiming her). Many couples find that having the lower-income parent claim the child results in a larger total refund for the household, even though the higher-income parent loses out on Head of Household status. Also remember that your daughter qualifies for the full Child Tax Credit since she was born during the tax year, regardless of who claims her. The key is figuring out which arrangement maximizes your family's total tax benefit.

just wanna point out - the person with higher income isn't always the best choice! when i was making less than my bf, i got way more back from earned income credit when i claimed our daughter. we got almost $2k more by having me claim her even tho he made like $15k more than me that year. the credit phases out at higher incomes. so sometimes the lower earner actually gets more benefit. definitely worth checking both ways!

One thing I don't see mentioned here yet is that if your partner can file as Head of Household (which they likely can if they claim your daughter), that filing status alone can save a significant amount compared to filing Single. The HOH standard deduction is much higher and the tax brackets are more favorable. Also wanted to add - make sure whoever claims your daughter also claims any childcare expenses if you're paying for daycare. The Child and Dependent Care Credit can be worth up to $1,050 for one child (20% of up to $5,250 in expenses). This credit has to go with whoever claims the dependent, so factor that into your calculations too. Given your income levels ($42k vs $58k), I'd definitely recommend running the numbers both ways like others suggested. The Earned Income Credit phases out around $50k for someone with one child, so there's a good chance you claiming her might actually result in a better overall refund for your household, especially if you're paying for daycare.

If I remember correctly, H&R Block actually updated their software in mid-February last tax season to include the current year for new IRA accounts. It might be worth checking for updates or waiting a couple weeks to see if they push an update that adds 2023 as an option. Also, keep in mind that Roth IRA contributions don't directly impact your tax refund or amount owed (unlike Traditional IRA contributions), so even if you have to select "None" for now, it shouldn't change your tax outcome. The IRS just wants to track your basis for when you eventually take distributions.

Ok everyone is overthinking this. H&R Block asks for your Roth IRA basis mainly to track your non-deductible contributions over time. The "basis" is just a fancy word for "money you already paid tax on." Since Roth contributions are made with after-tax money, all your contributions become your basis. For a brand new account with your first contribution ever, your basis is simply the amount you contributed. About the year selection issue - this happens EVERY year with tax software! They're always a bit behind.

I completely understand your frustration with Worksheet B! I went through the same confusion when I first encountered it. What helped me was realizing that Worksheet B is essentially doing a "pre-check" to see if your income is high enough to trigger the phase-out rules for the Child Tax Credit. Think of it as two separate questions the IRS needs answered: 1) How much Child Tax Credit would you normally get? and 2) Does your income require us to reduce that amount? Worksheet B handles question #2 entirely. All those intermediate calculations on lines 1-14 are working through a complex formula that considers your filing status, number of children, and modified adjusted gross income to determine exactly how much (if any) your credit should be reduced. The IRS could have made this a simple percentage calculation, but the phase-out rules are actually quite nuanced and vary based on multiple factors. Line 15 represents your "final allowable credit" after all income limitations are applied, which is why it's the only number that transfers back. The other calculations served their purpose in getting you to that final number - they're not "wasted" math, they're the foundation that Line 15 is built on. It's definitely one of the more confusing parts of tax preparation, but once you understand the logic behind it, it makes more sense!

I totally get your confusion! I had the exact same reaction when I first dealt with Schedule 8812. After staring at it for way too long, I finally figured out that Worksheet B is basically the IRS's way of double-checking whether your income is low enough to get the full Child Tax Credit. Here's what's really happening: Lines 1-14 are walking through a step-by-step income test. The IRS needs to know if you're in the "phase-out range" where high earners start losing some of their credit. All those calculations are determining exactly how much of your credit (if any) gets taken away because of your income level. Line 15 is the magic number because it's your credit amount AFTER they've applied any income-based reductions. That's why it's the only one that goes back to Worksheet A - it's your actual allowable credit, not just a piece of the calculation. Think of it like this: the IRS gives you a credit, but then they have to run it through this income filter to see if you get to keep all of it. Worksheet B IS that filter, and Line 15 is what comes out the other side. The rest of the math is just showing you how the filter works, even though you never see those intermediate numbers again. Hope that helps clear up the mystery!

Quick question - if I'm buying parts specifically for projects I'm filming, but then I keep the final product (like a robot or whatever), does that affect my ability to deduct the costs? Like am I supposed to count the finished item as inventory or something?

Great question! I'm also a content creator (cooking channel) and went through this same confusion when I started. You definitely don't need an LLC to deduct business expenses - you can claim them as a sole proprietor on Schedule C. One thing I learned the hard way is to keep really detailed records from day one. Don't just save receipts - note what each purchase was for and how it relates to your content. For example, "Arduino Uno R3 - used in Episode 12: Smart Home Door Lock Project" is much better documentation than just "electronics." Also consider setting up a separate bank account for your YouTube business even if you don't form an LLC. It makes tracking expenses so much easier when tax time comes around, and it shows the IRS you're treating this as a legitimate business rather than a hobby. The business vs hobby distinction can be important for deduction purposes. Your equipment purchases sound totally legitimate for a tech YouTube channel. Just make sure you're documenting how each item is used for business purposes!