I had this same issue! The form where you list dependents (Form 1040) doesn't limit how many dependents you can claim. You just list them all in Part I of the dependent section. One thing though - are you sure you want to claim them? By claiming them as dependents, you might be messing up their ability to get certain tax credits or benefits that they'd qualify for otherwise. Have you checked if this could affect their situation negatively?

Great question! I went through this exact situation with my parents two years ago and can confirm you CAN claim both parents as dependents even though they're married and filed jointly. The key things to verify: 1. Each parent individually meets the gross income test (under $5,100 for 2025) 2. You provided more than 50% of their total support 3. They lived with you for the full year 4. They only filed their joint return to get a refund of withheld taxes From what you've described, it sounds like you meet all the criteria. The Social Security income likely won't count toward the gross income limit since it's typically not taxable at their income level. One tip: create a simple spreadsheet tracking all the support you provide (housing costs, utilities, food, medical, etc.) versus any support they provide themselves. This documentation will be invaluable if you're ever questioned about the dependency claims. Also, double-check that claiming them won't disqualify them from any credits or benefits they might be eligible for independently - sometimes the family saves more money overall by not claiming the dependents if they qualify for certain credits on their own return.

Quick question - what tax software are you all using to handle this kind of situation? I'm trying to include my husband's 1099-MISC on my Schedule C and TurboTax is giving me a hard time about it since the SSNs don't match.

I went through almost the exact same situation last year with my consulting business! The key thing I learned is that the IRS cares about the substance of the transaction, not just whose name is on the form. Since your 1099-MISCs from both you and your wife are directly related to your business activities in the travel rewards space, they should absolutely be reported on your Schedule C. For your wife's 1099s specifically, the fact that she helps with administrative tasks and content creation makes this pretty straightforward. That's legitimate business involvement. I'd suggest keeping a simple log of her contributions - even just a monthly summary of tasks performed. This way if you're ever questioned, you can demonstrate that her income wasn't just a paper transaction but reflects actual business participation. One thing to watch out for: make sure you're consistent year over year. If you start including her 1099s on your Schedule C, keep doing it as long as she remains involved in the business. The IRS doesn't like seeing income bounce back and forth between spouses without clear business justification. This approach also maximizes your SEP-IRA contribution limits since you're capturing all legitimate business income. Just make sure your record-keeping is solid!

Has anyone addressed the potential need for a Form 8832 (Entity Classification Election) in this situation? When my father-in-law passed and left his S-corp to my husband, we had to file this to maintain the S election through the estate transfer process.

I went through a very similar situation when my mother passed last year and left me her S-corp. One critical thing I learned that hasn't been mentioned yet is the importance of getting the business properly valued as of the date of death for estate tax purposes and for establishing your stepped-up basis. The IRS requires a formal business valuation if the estate is large enough to require an estate tax return (Form 706), but even if you're below that threshold, having a professional valuation done can save you significant capital gains taxes if you ever sell the business later. The stepped-up basis rule means you inherit the business at its fair market value on the date of death, not what your father originally paid for it. Also, make sure you understand the quarterly estimated tax requirements. Since S-corp income passes through, the estate (and potentially you as beneficiary) may need to make quarterly payments to avoid underpayment penalties. The timing can get tricky when ownership transfers mid-year. I'd strongly recommend getting both a CPA experienced with estates and a business attorney involved sooner rather than later. The two-year limit on estates holding S-corp stock that Juan mentioned is real and has serious consequences if you miss it.

Don't make the mistake I made! I was co-signer on student loans and claimed the interest for years, but during an audit they disallowed it because I couldn't prove I made the actual payments. Make sure you're keeping bank statements or canceled checks showing the money came from YOUR account, not just the letter showing interest was paid.

This thread has been incredibly helpful! I'm in a similar situation where I co-signed my nephew's student loans and have been making payments for the past year. I had no idea I could claim the student loan interest deduction as a co-signer. One thing I'm wondering about - if the loan servicer sends the 1098-E to my nephew (the primary borrower) but I'm the one making the payments, do I need to get a copy of that form from him? Or is the payment documentation from my bank account sufficient like others have mentioned? Also, has anyone dealt with multiple loan servicers? My nephew has loans with both Navient and Great Lakes, and I've been paying on both. Just want to make sure I can claim the interest from both servicers on my return.

This question comes up a lot! I recommend using the IRS Interactive Tax Assistant tool. Just google "IRS filing status tool" and it walks you through a series of questions to determine if you qualify for HOH. Much better than guessing or getting random advice online.

I work as a tax preparer and see this situation frequently. Yes, multiple people in the same physical address can absolutely claim Head of Household status as long as they each meet the requirements independently. The key is understanding that "household" for tax purposes doesn't mean the physical building - it refers to your financial responsibility for maintaining a home where you and your qualifying person live. Each parent supporting their own children can constitute a separate "household" even under one roof. For your cousin's situation, they should both be able to claim HOH if they each: - Are unmarried at year-end - Have qualifying children living with them more than half the year - Pay more than half the cost of keeping up their respective households The 50/50 split of shared expenses (utilities, rent/mortgage) is fine. They just need to track that each person's total contribution (their share of common expenses PLUS their children's individual expenses) exceeds half of what it costs to maintain their living situation. Keep good records and consider consulting a tax professional if the numbers are close, but this is definitely allowed by the IRS.