Btw is anyone else having issues with TurboTax when trying to figure this out? It keeps giving me confusing prompts about whether i "can" be claimed vs if i "will" be claimed as a dependent.

Great question, Malik! The key thing to remember is that all four dependency tests have to be met for your parents to claim you - if you fail even one test, they can't claim you as a dependent. From what you've described, it sounds like you're failing the support test since you're paying for your own tuition, rent, and living expenses. The fact that you're under 24 and a full-time student only matters if your parents are ALSO providing more than half your support. One thing to be extra careful about: make sure you're counting everything when you calculate support. This includes the fair market value of housing (even dorm rooms), all food costs, medical expenses, transportation, etc. If you lived with your parents for those few months during shutdown, you'd need to factor in the value of that housing too. Since you mentioned loans and scholarships - student loans in YOUR name count as support YOU provided to yourself, while scholarships are generally considered third-party support and don't count toward either side's percentage. Keep detailed records of all your expenses from this year in case there are any questions later. Sounds like you're on the right track to file independently!

Don't forget about the Earned Income Credit! My ex and I live together with our kids (not married) and we found out that if the lower earning parent claims the kids, you might qualify for EIC which can be substantial.

As someone who went through a very similar situation last year with my partner, I'd strongly recommend running the numbers both ways before deciding. We have two kids (3 and 5) and similar income levels, and initially thought splitting the dependents made the most sense. However, after calculating everything out, we found that having me claim both children and file as Head of Household saved us about $2,800 compared to each claiming one child. The key was figuring out who actually pays "more than half" of the home maintenance costs - it's not just mortgage, but also utilities, repairs, property taxes, homeowner's insurance, etc. Since you own the home, you're probably paying property taxes and homeowner's insurance directly, which might push you over the 50% threshold even with her contributing half the mortgage payment. I'd suggest adding up ALL your housing costs for the year and see where you land. Also, whoever claims the kids can claim the childcare expenses for the Dependent Care Credit, regardless of who physically writes the checks to the daycare. This credit can be worth up to $2,100 for two kids, so factor that into your calculations too. One last tip - keep detailed records of who pays what throughout the year. The IRS sometimes scrutinizes unmarried couples' filing status more closely than married couples.

As someone who recently completed a similar transaction selling my family medicine practice to a non-physician management group, I want to emphasize the importance of getting your legal structure right from day one. The MSO arrangement mentioned by others is absolutely the way to go, but there are some nuances that can make or break the deal. One critical point that hasn't been fully addressed is the employment agreement structure for the physician who will eventually take over your S-Corp ownership. We initially planned for me to transfer ownership to a new physician employee after 18 months, but discovered that the employment terms needed to be carefully structured to avoid creating tax issues under IRC Section 409A (deferred compensation rules). The key insight from my experience is that the management fee percentage needs to be genuinely arm's length and documented with a formal valuation study. We used 20% of collections, but had to provide extensive documentation showing this was market rate for the services provided. The IRS scrutinizes these arrangements heavily, especially when the percentage seems high relative to the actual management services. Also, don't overlook the impact on your retirement plan assets. If your S-Corp has a 401(k) or profit-sharing plan, the sale structure affects whether you can maintain those benefits or need to distribute/roll over the assets. In our case, we had to terminate the existing plan and establish new arrangements, which created some unexpected timing issues for both me and my employees. The good news is that when structured properly, these deals can work extremely well for both parties. The buyers get operational control and cash flow, while you get capital gains treatment on the sale proceeds and a clean exit strategy.

The insights about valuation methodology and its tax implications are spot on. I went through a similar process selling my gastroenterology practice and found that the allocation between personal goodwill versus practice goodwill was absolutely critical for tax treatment. One aspect I'd add is the importance of understanding how your existing contracts with hospitals or ASCs might be affected. In my case, we had several co-management agreements with local hospitals that couldn't be directly transferred to the MSO due to Stark Law considerations. We had to restructure these arrangements, which reduced the overall practice value but was necessary for compliance. Also, consider the impact on your malpractice insurance. Tail coverage requirements can be substantial - in my case, it was nearly $180K for extended reporting coverage. Make sure the purchase agreement clearly specifies who bears this cost, as it can significantly impact your net proceeds from the sale. The earnout structures mentioned earlier are smart, but be very careful about the metrics used. We initially considered patient retention targets, but realized that specialty practices like gastroenterology can have natural patient turnover due to procedure-based care versus ongoing relationship-based care in primary care specialties. Finally, don't underestimate the emotional aspect of selling a practice you've built. The financial and legal complexity is manageable with good advisors, but preparing mentally for the transition and loss of complete autonomy takes time. Starting those conversations with family early in the process is just as important as getting the tax structure right.

I received my refund through Venmo yesterday (3/14) even though my DDD was 3/15! It posted at 2:18pm EST and showed up as "US TREASURY 310 TAX REF" just like others have mentioned. I was worried about potential delays after reading horror stories, but it actually came a day early. For anyone still waiting, I'd suggest checking your account transcript on the IRS website - if you see the TC846 code with your DDD, the money is definitely on its way. Venmo seems to process these deposits in the afternoon, so don't panic if you don't see it first thing in the morning like with traditional banks. Hang in there!

I've been using Venmo for tax refunds for three years now, and here's what I've learned about their timing patterns: They typically process government ACH deposits in two batches - one around 11:30am EST and another around 3:15pm EST. For DDD 3/15, I'd expect most Venmo deposits to hit during that afternoon batch today. Last year my refund was 6 hours later than my friend who used Chase, but it did arrive on the correct DDD. One tip that helped reduce my anxiety - enable push notifications in your Venmo app so you'll get an alert immediately when it posts. The waiting game is brutal, but from what I've observed, Venmo is generally reliable for tax refunds, just slower than traditional banks. Keep checking through 5pm today before worrying!

I wanted to add that getting an EIN is super easy these days. You can do it online at the IRS website and get your EIN immediately. It's free and takes maybe 15 minutes tops. Here's the link: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online Don't waste money on those "EIN services" that charge you for something you can do yourself for free. Just make sure you have your LLC formation docs handy because they'll ask for the formation date and state.

From personal experience, you absolutely want to set up proper business banking from day one. I made the mistake of using a personal account for my first few months of LLC operations and it became a nightmare during tax season - trying to separate business expenses from personal ones was incredibly time-consuming. Regarding the EIN vs SSN question: while you CAN use your SSN for a single-member LLC, I'd strongly recommend getting an EIN anyway. It's free, takes 15 minutes online, and makes everything smoother with banks. Plus, you'll need it eventually if you ever hire employees or change your tax election. Don't let the banking decision hold up getting paid! Most banks can set up a business account quickly once you have your LLC docs and EIN. Credit unions are often faster and cheaper than big banks for small business accounts. The key is keeping those business transactions completely separate from personal ones to maintain your liability protection.