One strategy that helped me deal with AMT from ISOs: If you're expecting to be in AMT for several consecutive years, consider exercising and holding ISOs in the HIGHEST AMT year, then doing disqualifying dispositions (immediately selling) in other years. This maximizes the value of your AMT credits when you can finally use them. For your specific question about TurboTax vs TaxSlayer - I've used both, and TurboTax Premier definitely does support Form 8801, it's just not obvious. TaxSlayer's interface makes it a bit easier to find the AMT credit forms in my experience. Also don't forget that keeping perfect records is crucial. Document every ISO transaction, your basis calculations, and keep copies of all AMT-related forms (6251, 8801) from every year. You might need these records for a decade or more until you finally use all your credits!

This is such a helpful thread! I'm dealing with a similar ISO/AMT situation but have an additional complication - I moved states between tax years. Does anyone know how state AMT credits work when you relocate? I paid AMT in California last year due to ISO exercises, but now I'm a Texas resident (no state income tax). Will I still be able to claim the California AMT credit if I exercise more ISOs this year as a Texas resident? Or do I need to file something special with California to maintain those credits? The federal AMT credit carryforward seems straightforward based on everyone's advice here, but I'm completely lost on the state piece. My CPA moved to a different firm and I haven't been able to get clear guidance on this.

Has anyone used TurboTax for a situation like this? I moved from Michigan to Ohio in August and I'm wondering if it's worth paying for TurboTax Deluxe to handle the multiple state returns or if I should just go to a tax professional this year?

I went through this exact situation when I moved from Texas to California mid-year. You definitely cannot just file in one state - each state wants their share of taxes for the period you were a resident there. Even though it seems like extra paperwork, filing as a part-year resident in both states is the only legitimate option. The good news is that most tax software makes this pretty straightforward these days. You'll need to determine your residency dates for each state (sounds like you have clear move dates) and allocate your income accordingly. Since you worked remotely, you'll owe Nebraska taxes on income earned while living there from January through early June, and Colorado taxes on income earned from June onward. Don't try to skip filing in Nebraska - state tax authorities are pretty good at cross-referencing federal returns and W-2 information. It's better to deal with the minor hassle now than face penalties and interest later.

One thing I haven't seen mentioned yet is the potential impact of state disability insurance (SDI) and other payroll taxes for remote workers. Even if you don't owe income tax to a state, you might still be subject to their payroll taxes if your employer is based there. For example, California has SDI tax that applies to all wages paid by California employers, regardless of where the work is performed. This is separate from income tax obligations. Similarly, some states have unemployment insurance requirements that follow the employer's location rather than where you work. I learned this the hard way when I discovered I owed California SDI tax even though I successfully argued I didn't owe California income tax as a remote worker. The rules are completely different and it's easy to overlook. If you're dealing with multi-state issues, make sure to research both income tax AND payroll tax obligations separately. Your payroll department might not be handling this correctly either - I've seen cases where employers weren't withholding required SDI but were withholding income tax they shouldn't have been. Also worth noting: some states are starting to require quarterly estimated payments for remote workers, especially if you're classified as an independent contractor rather than an employee. The requirements can be quite different from your home state's rules.

This thread has been incredibly helpful! I'm in a similar situation as a remote worker and had no idea about some of these complexities. A few additional points that might help others: **Documentation is key**: Beyond the work location log mentioned earlier, I'd also recommend saving all travel receipts, hotel bookings, and any emails/communications that establish your remote work arrangement. If your company has a formal remote work policy, get a copy for your records. **State-specific quirks**: Each state really does have its own weird rules. For example, I discovered that some states consider ANY work performed on their soil as creating a filing requirement, while others have safe harbors for short-term business travel (usually under 30 days). **Professional help timing**: If you're going to consult a tax professional, do it BEFORE you file rather than after you get an audit notice. Multi-state tax specialists can often structure your filing approach to minimize future audit risk. **Estimated payments**: Don't forget that if you end up owing taxes to multiple states, you might need to make quarterly estimated payments to avoid underpayment penalties. The safe harbor rules can be different for each state too. The remote work tax landscape is definitely still evolving post-pandemic, so staying informed and keeping good records is more important than ever!

I work as a tax preparer and see these situations fairly often. Based on what you've described, you should be able to claim your partner as a dependent. The key tests you need to meet are: 1. **Support Test**: You provided more than half of his total support for the year (sounds like you clearly meet this) 2. **Gross Income Test**: His income must be less than $4,700 for 2024 (you mentioned zero income, so ✓) 3. **Member of Household Test**: This is where the incarceration question comes in For the member of household test, the IRS considers temporary absences - including incarceration, hospitalization, education, military service, etc. - as time the person is still living with you, provided it's reasonable to assume they'll return to your household. Since your partner lived with you for 7 months and returned after his release, the 5-month incarceration would be considered a temporary absence. Make sure to keep documentation of the financial support you provided (rent, utilities, groceries, etc.) and proof of your shared residence before and after the incarceration period. You don't need to submit anything with your return, but having records ready is always smart in case of questions later. Also double-check that no one else (like his parents) will be claiming him as a dependent to avoid any conflicts with the IRS.

Just wanted to add my experience from a similar situation last year. My boyfriend was incarcerated for 4 months in 2023, and I was nervous about claiming him as a dependent even though I clearly met all the support requirements. I ended up consulting with a CPA who confirmed that the temporary absence rule definitely applies to incarceration periods. One thing that really helped was creating a simple spreadsheet tracking all the support I provided throughout the year - rent, utilities, food, medical expenses, etc. Even though he wasn't physically present for those 4 months, I was still covering his portion of rent and keeping up with expenses that would resume when he returned. The CPA said this kind of documentation clearly demonstrates the ongoing financial relationship and intent for him to return to the household. Also, don't forget to consider any expenses you might have incurred related to his incarceration - commissary money, phone calls, transportation to visit - these all count as support you provided during that period. I claimed him successfully and had no issues with the IRS. Sometimes the tax code actually works in favor of people in difficult situations!

Has anyone used TurboTax Self-Employed for this kind of situation? I'm wondering if it helps identify which expenses qualify when you're in that gray area.

The transition from hobby to business can definitely be confusing! The good news is that there's no magic income number you need to hit before you can start deducting business expenses. What matters most is your intent and how you operate. Here's what I'd recommend documenting to strengthen your position: Keep a separate business bank account (even if it's just a basic checking account), maintain detailed records of all income and expenses, create a simple business plan showing how you intend to become profitable, and treat it professionally with business cards, invoices, etc. The IRS will look at factors like whether you're actively seeking customers, if you're improving your skills/methods to increase profits, how much time you're dedicating to it, and whether you're conducting it in a businesslike manner. Even if you're operating at a loss initially, that's completely normal for new businesses. Since you're already tracking expenses, you're on the right track! Just make sure each expense has a clear business purpose and keep good records. The key is being able to show you're genuinely trying to build a profitable business, not just enjoying an expensive hobby.