Went through this exact situation last year. If you file separately, you can each deduct mortgage interest and property taxes proportionate to how much each of you paid. So if you paid 60% of these costs, you can deduct 60% of them. Keep good records though - my ex tried to claim more than their share and we both got audited!

The spousal support you receive will be added to your income, but it typically won't disqualify you from deductions - it might just affect the amounts you can claim for income-based credits like the Earned Income Credit or Child Tax Credit. However, since you'd be filing Married Filing Separately anyway, you're already ineligible for most of those credits regardless of the support payments. The bigger issue is making sure you're withholding enough tax on that support income since it's not subject to automatic withholding like wages. You might want to make quarterly estimated payments to avoid owing a large amount at filing time.

Yes, spousal support income can definitely affect your eligibility for various credits and deductions. The support payments are added to your other income, which could potentially push you over income thresholds for things like the Child Tax Credit, Earned Income Credit, or education credits. However, don't panic just yet! The impact depends on your total income level and which credits you're trying to claim. For example, if your combined income (including support) is still below $200,000 (single) or $400,000 (married filing separately), you likely won't lose the Child Tax Credit entirely, though it might be reduced. I'd strongly recommend using a tax software that can run scenarios for you, or better yet, consult with a tax professional who can model different filing scenarios with your specific support amounts. They can show you exactly how the support income affects your overall tax situation and help you make the most financially beneficial choice.

TurboTax works fine but you need to know which sections to use. When adding a dependent, make sure you select "qualifying relative" not "qualifying child" when it asks about dependent type. Then it will walk you through the right questions. Also make sure you have a good estimate of ALL support provided - housing fair market value (not just what you pay), food, medical, transportation, etc. I keep a spreadsheet throughout the year to track this. For your mom's Social Security, you'll need her SSA-1099 form to answer accurately.

Great question! For fair market value research, I used a combination of sources to build a solid case. I checked Zillow, Apartments.com, and Craigslist for comparable rentals in my area - specifically looking for single rooms or small apartments similar to what my dad was using in terms of square footage and amenities. I also called a couple local property management companies to ask about their typical rates for similar spaces. The IRS doesn't specify an exact method, but they do want it to be "reasonable and supportable" if questioned. I documented my research by taking screenshots of listings and keeping notes on the calls I made. The key is being able to show you made a good-faith effort to determine fair market value. I ended up using a conservative estimate (on the lower end of what I found) to avoid any issues. Keep all your documentation - rental listings, notes from calls, maybe even a brief write-up explaining your methodology. This way if the IRS ever asks, you can show exactly how you arrived at your number.

Great question about documenting fair market value! I used a combination of sources to establish reasonable rental rates. I started with Zillow and Apartments.com to get a baseline for similar properties in my area, then also checked Craigslist and Facebook Marketplace for actual rental listings. The IRS doesn't specify exactly how to calculate this, but they do expect it to be "reasonable and supportable." I took screenshots of comparable rentals and kept them with my tax records. For a single room situation like yours, I looked at both studio apartments and room rentals to get a range, then used a conservative estimate. You might also check with local housing authorities or ask a realtor friend for comparable rental data. The key is being able to show you made a good faith effort to determine fair market value if questioned. I ended up using about 75% of what a comparable studio would rent for, since she's sharing common areas with me. Keep whatever documentation you use - it's much easier than trying to recreate it later!

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Did you have to file an amended return or was just responding to the letter enough?

This is good advice! I just checked my state's tax website and they have an online portal where you can view past tax documents. Much easier than dealing with the IRS system.

Look for CPAs or Enrolled Agents who specifically advertise "unfiled returns" or "back tax preparation" on their websites. The IRS has a directory of credentialed tax professionals at irs.gov where you can search by specialty. Also check with your state's CPA society - they often have referral services. When you call potential tax pros, ask directly about their experience with multi-year unfiled returns and transcript-based preparation. A good one will immediately understand your situation and won't seem fazed by missing W2s. They should also be upfront about fees and timelines since this type of work is more complex than regular returns. Don't settle for someone who seems uncomfortable with your situation - there are plenty of professionals who handle cases like yours regularly and will make the process much smoother than trying to figure it all out yourself!

Look for CPAs or Enrolled Agents who specifically advertise "unfiled returns" or "back tax preparation" services. You can search the IRS directory for Enrolled Agents in your area - they specialize in tax issues and are authorized to represent taxpayers before the IRS. Many have extensive experience with exactly your situation. Another good approach is to call a few tax offices and ask upfront: "Do you handle cases where someone hasn't filed for multiple years and needs to reconstruct their tax history from IRS transcripts?" The right professional will immediately understand what you're dealing with and won't bat an eye - trust me, you're not the first person they've seen in this situation! You might also consider reaching out to Low Income Taxpayer Clinics (LITCs) if you qualify - they provide free or low-cost help with tax issues and are very experienced with complex unfiled return situations. The IRS has a directory of these clinics on their website.