Thanks for bringing this up! My parents and I already discussed this - they aren't claiming me as a dependent this year since I provided more than half of my own support. I've been working almost full-time hours at the restaurant plus some gig work on weekends. So I should be able to claim my own education credits, right? Is there anything specific I need to document to prove I supported myself in case of an audit?

Yes, if you provided more than half of your own support and your parents aren't claiming you, then you're absolutely right to claim your own education credits on your return. This is actually the ideal situation for maximizing your benefits! For documentation, keep records of your income (pay stubs, bank statements showing deposits), housing payments (rent receipts), and major expenses throughout the year. Also track any financial aid, scholarships, or loans in your name. You don't need to submit these with your taxes, but having this documentation is important if you're ever questioned about your independent status. A simple spreadsheet showing your total income versus your total expenses for the year can be really helpful to demonstrate you provided over 50% of your own support.

I had the same issue last year! Turned out the Premier version was correctly applying some course material expenses that the Deluxe version missed. Worth double-checking all the education expense sections regardless of which version you use.

Does this apply to FreeTaxUSA too? I switched from TurboTax this year to save money, but I'm worried the cheaper software might not handle these details correctly.

Yes, FreeTaxUSA handles Schedule B the same way. I actually switched to FreeTaxUSA two years ago after using TurboTax for over a decade. Their interface for entering 1099-DIV information is straightforward - you just enter "Vanguard Brokerage Account" as the payer name and the total amount from Box 1a. The software will automatically generate Schedule B if you're over the $1,500 threshold. FreeTaxUSA is actually quite robust for most tax situations, especially for investments. The only real difference I've noticed is that the interface is a bit more streamlined, but all the functionality is there.

That makes sense! My sister has about 8 different funds, so I can see how that would get unwieldy. Sounds like this is standard practice and not something unique to Vanguard. Appreciate everyone's helpful responses - this has been really educational for both of us!

Exactly! And if your sister has multiple brokerage accounts, she would list each brokerage separately on Schedule B. For example, if she has Vanguard and Fidelity, she would have two entries - one for each brokerage with their respective totals from Box 1a of each 1099-DIV. The IRS matches these totals with what each institution reports, not the individual holdings within each account.

Does the same rule apply to stimulus payments for dependents? My ex and I have been alternating years for claiming our son, but we got confused with the stimulus payment rules.

The stimulus payments operated under slightly different rules than regular tax credits. For the pandemic-era Economic Impact Payments (stimulus checks), the payment for eligible dependents generally went to whoever claimed the child on their most recently filed tax return that the IRS had processed when the payments were issued. For future reference, the IRS typically uses the most recent tax year information they have on file when distributing special payments like stimulus checks. That's why it's important to keep your filing status and dependent information up-to-date. If you alternate years for claiming your son, the parent who claimed him on the most recent return before the stimulus payment would generally receive the dependent portion.

Did they make you prove where the child lived? What kind of documentation did they ask for? I'm worried because we don't have a formal custody agreement, just an informal arrangement.

I didn't even think about checking if my doctor is in-network! Thanks for pointing that out. I take a maintenance med for high blood pressure so I'll definitely check the prescription coverage too. Is there an easy way to see which plans include specific doctors? The Healthcare.gov site seems a bit overwhelming with all the plan options.

Most plans on Healthcare.gov will have a link to the insurer's website where you can search for specific doctors. But honestly, the most reliable method is to call your doctor's office directly and ask which marketplace plans they accept. The online directories are sometimes outdated. For prescriptions, look for the plan's "formulary" - that's their list of covered medications. Different tiers have different costs, so check which tier your medication falls into. Some plans also offer prescription discounts before you meet your deductible, which can make a big difference.

I'm in Illinois. From what I've seen, we use the federal Healthcare.gov site, right?

Yep, Illinois uses Healthcare.gov. But worth noting that some states have additional programs beyond what's on Healthcare.gov. For example, if your income is low enough during your unemployment period, you might temporarily qualify for Medicaid in Illinois, which could be free or very low cost until you find a new job.

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