Thanks for mentioning this! Do you know if I would qualify for the Child Tax Credit specifically, or would it be the Credit for Other Dependents since I'm the grandparent, not the parent? Also, would my daughter still be able to get the disability benefits if I claim the kids on my taxes?

You can potentially qualify for the Child Tax Credit even as a grandparent! The relationship test for the CTC includes grandchildren. As long as they meet the other tests (lived with you more than half the year, you provided more than half their support, they're under 17, etc.), you can claim the full Child Tax Credit, which is worth much more than the Credit for Other Dependents. Your daughter can continue receiving the disability benefits for the children regardless of who claims them on taxes. The tax dependency status and disability benefits eligibility are separate systems. The important thing is that you're actually using the majority of resources (including your own money plus a portion of those benefits) to support the children.

Yes! We claim my wife's brother who has autism and we deduct a lot of his therapy expenses as medical expenses. If their medical expenses exceed 7.5% of your AGI, you can itemize and deduct them. Also look into FSA or HSA accounts to pay for these expenses pre-tax if possible.

That's a great suggestion! I didn't know you could do a one-time withholding adjustment. Would I just ask our HR department about this option?

Yes, exactly! Just reach out to your HR or payroll department and ask if they allow one-time additional withholding requests. Most larger companies have a form for this. It's sometimes called a "one-time deduction request" or "special payroll deduction." The advantage is you don't have to remember to change your W-4 back later, and you can handle the entire under-withholding issue in one shot instead of spread across multiple paychecks. Just make sure to keep a copy of whatever form you submit and follow up to confirm it was processed correctly!

Echoing this! I set a calendar reminder for February 15th every year to redo the withholding calculator. Tax brackets adjust annually for inflation, plus life changes like raises, new dependents, etc. can all impact your needs.

When I filed SS-8 last year, I included copies of my contract, emails showing how they controlled my work schedule and processes, and a detailed description of my daily work responsibilities. The more evidence you have showing employer control, the stronger your case. Remember the key factors are behavioral control, financial control, and relationship type. Document everything that shows they treated you like an employee!

Thanks for the detailed advice! I definitely have emails showing them dictating my hours and how to do tasks. I'll compile those along with my contract. Did you also include any information about other employees doing similar work who were classified as W-2 instead of 1099?

I had a similar experience with H&R Block's software! It technically had the form but provided zero guidance on how to fill it out properly. Ended up making mistakes that caused my return to be delayed.

Thanks for mentioning the form! Quick question - is it Form 8832 or did you mean something else? I've been looking online and Form 8832 seems to be related to business entity classification, not childcare expenses. Is there a different form number I should be asking my son's Montessori for?

You're absolutely right, I made a mistake with the form number. I meant to say that you should get documentation from the childcare provider, which is typically reported on Form 2441, not 8832. Most providers will give you a receipt or year-end statement with their tax ID (EIN) and the total amount you paid during the year. Some providers will complete Form W-10 (Dependent Care Provider's Identification and Certification) which gives you their official information for tax purposes. That's what you'll need when completing Form 2441 to claim the Child and Dependent Care Credit. Thanks for catching my error!

Yes! I successfully did this last year. The key is that you must have custody for more than half the nights of the year to claim the Dependent Care Credit, even if your ex claims the child as a dependent due to your agreement. I had to paper file though, because TurboTax kept giving me errors when I tried to enter it this way.

Does this same approach work for 1099-INT forms with multiple interest payments from the same bank? I have like 15 different accounts at the same credit union and they're all on one form.

Yes, the same principle applies to 1099-INT forms with multiple accounts from the same financial institution. You can list each account separately on Schedule B using the same payer ID for all of them, or combine them into one line item. For 15 different accounts, I'd probably combine them unless you really need to track each account separately for some reason. Most tax software has a limit on how many entries it will accept for the same payer before suggesting you consolidate them anyway.

That's true! I've used both TaxAct and TurboTax over the years and they handle it differently. TaxAct wanted me to combine everything with the same payer ID, while TurboTax gave me the option. The final tax calculation ends up the same either way though.