Would it make more sense for my grandmother to claim it instead since she's the one who actually paid? Or is that not even an option since the form is in my name?

Since the 1095-T is in your name, your grandmother cannot claim the education credits, even though she paid. The IRS ties these benefits to whose name is on the form and their dependent status. The only way your grandmother could claim education benefits would be if you were her dependent, which you've said you're not. This is actually beneficial for you, since as a student with likely lower income, you'll probably get more value from the credit than she would.

Omg you're right! I just double-checked and it's a 1098-T form. I feel so stupid mixing those up. Does this change any of the advice people have given?

This is so helpful! My uncle's IRA is traditional, not Roth, so sounds like I do need those annual RMDs. Is there any way to convert it to a Roth now to avoid the annual RMDs and just deal with the 10-year rule?

You can convert an inherited traditional IRA to an inherited Roth IRA, but be careful - you'll pay income tax on the entire converted amount in the year you do the conversion. This could potentially push you into a much higher tax bracket. If you decide to convert, you'd still be subject to the 10-year rule, but you'd eliminate the annual RMD requirements. Many people find it's most tax-efficient to do partial conversions over several years rather than converting the entire amount at once. I'd strongly recommend working with a tax professional to determine if and how much you should convert each year based on your overall tax situation.

I used TurboTax last year for this exact situation. It handles inherited IRA distributions fine, but you need to make sure you indicate it's from an inherited IRA when you enter the 1099-R information. There should be a specific question about whether this is an inherited IRA. The tricky part is that TurboTax doesn't calculate what your RMD should be - you need to know that number from your financial institution. As long as you distribute at least the RMD amount each year, TurboTax will report it correctly on your tax return.

Thank you! That's really helpful to know. I'll make sure to get the RMD calculation from my bank before doing my taxes. Glad to hear TurboTax can handle this if I input everything correctly.

Thank you! Would I need to submit any documents proving my insurance payments along with Form 5329? Or just keep those records in case of audit?

You don't need to submit proof of your insurance payments with your tax return or Form 5329. Just enter the appropriate exception code and the amount that qualifies for the exception. However, you should absolutely keep all documentation of your health insurance premium payments, proof of unemployment, and the timing of everything in your records. The IRS can request documentation if they have questions about your return, and you want to have everything organized and ready in case of an audit. I recommend keeping these records for at least 3 years after filing your return.

One other thing to consider - if your spouse was covered under the same marketplace plan, can you count the entire premium payment or just your portion? When I did this, my tax guy said I could only count my individual portion.

Can you explain the home office deduction more? I work from my bedroom at my desk - does that count? Or does it need to be a separate room?

For the home office deduction to be legitimate, the space must be used "regularly and exclusively" for business. A desk in your bedroom typically wouldn't qualify because the bedroom is also used for personal purposes (sleeping, dressing, etc.). The IRS wants the space to be a separate area used only for work. It doesn't have to be a whole room - it could be a section of a room if it's clearly delineated and used exclusively for business. But if you ever use that desk for non-business activities (gaming, paying personal bills, etc.), it wouldn't qualify. This is why dedicated home offices or converted spare rooms work best for this deduction.

The IRS worksheets are accurate but super confusing. I tried using Schedule SE directly and felt like I needed an accounting degree to understand it. Ended up making an error that cost me an extra $430 in taxes last year.

Thanks for this suggestion! I just emailed HR to ask if we have an accountable plan or any reimbursement program for home office equipment. I had no idea this was even an option. If they say no, should I try to convince them to start one? Is it complicated for employers to set up?

Definitely worth suggesting if they don't have one already! It's not particularly complicated for employers to set up - they just need to establish a formal policy for what expenses qualify and require reasonable documentation from employees (receipts, etc.). Many companies don't realize this is a win-win. You get your expenses covered tax-free, and they get a business expense deduction while providing a valuable benefit that helps with retention. With so many companies now permanently remote, more HR departments are implementing these programs. Just frame it as a competitive advantage for them in the current job market.

This is extremely risky advice. The IRS systems specifically flag home office deductions that don't align with self-employment income. Taking deductions you're not legally entitled to is tax fraud, regardless of whether you've been caught yet.