Does this work with the free version of TurboTax or only the premium versions? And can you use this feature before you're actually ready to file?

You need TurboTax Premier or above for the investment features - the free version doesn't support capital gains calculations. And yes, you can absolutely use this feature any time during the year before you're ready to file. I typically start a new tax file at the beginning of each year just for planning purposes. The tax planning tools are available year-round, not just during tax season. You can run different scenarios like "what if I sell these stocks at a loss?" to see the impact on your tax situation. It's been super helpful for making strategic decisions throughout the year rather than just discovering surprises at tax time.

Not everyone can afford an accountant, especially if they're just casual investors. I tried getting a consultation with a CPA and they wanted $250/hour just to discuss my tax situation. These online tools seem way more cost effective for most people.

Thank you for the detailed steps! Did you have to do anything special for the state tax portion or was it pretty straightforward once you figured out the federal part?

The state part was actually pretty simple once I figured out the federal portion. I just entered the state withholding amount from my 1042-S in the state withholding section along with my W-2 state withholding. For the income, I reported it the same way on my state return as I did on my federal. FreeTaxUSA walks you through the state portion after you complete the federal section, and the state return automatically imports most of the information from your federal return. Just make sure to double-check that all the withholding amounts are correct before submitting.

This is incorrect advice. As a resident alien, you generally CANNOT claim tax treaty benefits. Those are mostly for nonresident aliens only. Once you become a resident for tax purposes, you lose most treaty benefits except for very specific exceptions.

You're right, I should have been more clear. Most tax treaty benefits are for nonresident aliens, but there are some specific provisions that continue to apply even after you become a resident alien. It depends entirely on the specific treaty and the specific type of income. For example, the US-China treaty has provisions for students that can continue for a limited time even after becoming a resident alien. But you're correct that in most cases, becoming a resident alien means losing treaty benefits.

Thanks for the suggestion! I just checked Where's My Refund and it does show "refund approved" with a date for direct deposit next Wednesday. So I guess my grandma was right! The letter was just confusing because it had all this technical language about adjustments. Do you know if the date they show is usually accurate?

The dates they show are usually pretty accurate. If it says next Wednesday, you'll likely see it that day or possibly a day earlier depending on your bank. Some banks process IRS deposits a bit faster than others. If you don't see it by the end of the day after the promised date, that's when I'd start looking into it further. But in my experience (aside from that one time I messed up my account number), the deposit dates they provide are reliable.

You're right! I just checked and it does have CP12 in the top right corner. I didn't even notice that before. So based on what people are saying here, it sounds like this is just confirming they adjusted something on my return and I am getting a refund. I checked Where's My Refund and it says I should get it next week. Thanks everyone for the help!

CP12 is definitely a good notice to get! It means they found a math error but processed your return anyway. Usually it means they're sending your refund with a small adjustment. Much better than some of the other notices they send out!

That's a really good point I hadn't thought about! My mom and I have different tax preparers, and I don't think she itemizes deductions anyway since she takes the standard deduction. But I'll definitely check with her to make sure there's no double-claiming happening. Would it be sufficient if she just signs something stating she's not claiming the interest, or do we need something more official?

Having her sign a statement that she's not claiming the deduction would be good documentation to keep with your records. It doesn't need to be notarized or anything super formal - just something that shows you both understand the situation. The most important thing is making sure she doesn't claim it on her return. If the IRS sees the same mortgage interest claimed on two different returns, it will almost certainly trigger a review. Since the 1098 has her SSN on it, the IRS computers automatically expect that deduction to appear on her return, not yours. That's why the explanatory statement with your return is so important - it tells the IRS why you're claiming a deduction that's linked to someone else's SSN.

That's actually a good question but doesn't apply in this case. Since both the mother and child are on the deed (both have ownership interest), the payments aren't considered gifts - they're considered payments toward the child's own property interest. If the child wasn't on the deed but was making payments, then yes, those could potentially be considered gifts to the mother. But with joint ownership, each payment is partially for the child's own benefit. The mortgage interest deduction follows who made the payment AND has legal ownership, not necessarily who is on the loan.

That's a great point! I completely forgot about my charitable donations last year. I gave about $2,200 to various organizations and I have all the receipts. Would that be worth including in my amendment too? Also, do I need to send in copies of my mortgage interest statement and donation receipts with the amendment?

Absolutely include those charitable donations in your amendment! $2,200 is definitely significant and will increase your refund further. Combined with your mortgage interest, you're well over the standard deduction threshold. You don't necessarily need to send in the documentation with your amendment, but you should absolutely keep all those receipts, donation acknowledgments, and your Form 1098 mortgage interest statement with your tax records. The IRS can request substantiation later, especially for amended returns which tend to be reviewed more carefully.

Yes, you actually can e-file Form 1040-X now! The IRS started allowing this in 2020. Most major tax software (TurboTax, H&R Block, TaxAct, etc.) supports e-filing amendments. It's wayyy faster than paper filing and you get confirmation that they received it.