This is super helpful, thank you! My mom definitely provides way more than half my support. She pays the mortgage, all groceries, my cell phone, and even my car insurance. The money I made mostly went to save for college and some fun stuff.

That's perfect then - you absolutely qualify as her dependent. Just make sure when you file your return that you check the box saying someone else can claim you as a dependent. She'll get a much bigger tax benefit from claiming you than you would from claiming yourself.

This is important! My brother and I both claimed our mom one year (miscommunication) and we both got letters from the IRS within weeks. They flagged it immediately and it was a huge hassle to fix.

Thanks for sharing your experience! That's really helpful to know. I think I'll give H&R Block a try this year since I'd rather pay a bit more for a smoother experience, especially with something like backdoor Roth where the tax implications can be significant if reported incorrectly. Did you use their Deluxe or Premium version? I'm trying to figure out which tier I need.

I used their Premium version because I also had some investment income and rental property to report. For just the backdoor Roth, I believe their Deluxe version would be sufficient as it covers IRA contributions and Form 8606. Their website has a comparison chart that can help you determine exactly which features you need. The interface is pretty intuitive, with a dedicated section for IRA contributions where you specifically mark them as non-deductible. Then when you enter the 1099-R for the conversion, it connects the dots automatically. Just make sure you complete both sections for everything to calculate correctly.

This is such an important point that often gets overlooked! I nearly made this mistake myself. For anyone confused: with a backdoor Roth, you should NOT be deducting your Traditional IRA contribution at any point. The whole strategy only works tax-efficiently if you use after-tax dollars for the initial contribution. Otherwise, you'll end up paying taxes during the conversion step.

Thank you for bringing this up! I didn't deduct my Traditional IRA contribution on last year's taxes, so I should be okay on that front. But it's a really good reminder about ensuring consistency between tax years. I feel like there are so many gotchas with this strategy that the software doesn't really warn you about. Do you know if FreeTaxUSA has any special review checks for these kinds of issues?

Thanks for this suggestion! I'm going to contact the bursar's office tomorrow and specifically ask for a student account statement with the payment dates clearly shown. Should I also ask them to provide any kind of explanation letter about why they didn't issue a 1098-T? Would that help my case with the IRS?

Yes, definitely ask them for an explanation letter! Request a formal letter on university letterhead that explains: 1) why no 1098-T was issued for 2021, 2) confirmation that you were enrolled in spring 2021, and 3) verification of when your payments were actually received by the university. Most bursar offices have dealt with this exact situation before and should have a standard letter they can provide. Make sure the letter specifically mentions the dates your payments were processed in January 2021, as that's what the IRS needs to see to verify your eligibility for the credit in tax year 2021.

This is critical advice! I made the mistake of missing the response deadline on a CP2000 notice once, and it was a nightmare to resolve after that. They automatically processed the adjustment and started collection activities.

Thanks for this perspective! I hadn't considered the stimulus payment angle. That's definitely something to look into. And yeah, I'm really worried about the dependent situation. I honestly don't know if my parents actually claimed me that year or if I just assumed they did. Is there a way to check if someone claimed me as a dependent?

You can find out if you were claimed as a dependent by looking at your tax transcript for 2021, which you can request from the IRS website. It won't tell you who claimed you, but it will indicate if you were claimed by someone else. For checking about stimulus payments, look for line items on your account transcript regarding "Economic Impact Payment" or "Recovery Rebate Credit." If there's confusion about how these were handled, it could definitely affect your tax situation. The tax professionals at places like H&R Block deal with these types of issues all the time and often provide free initial consultations, so it's worth a visit to understand your options before you spend money on more expensive help.

This is a really good point. I had my identity stolen a few years back and the first sign was a tax bill for income I never earned. The IRS has a specific department for identity theft cases and they're actually pretty helpful. If this is what happened, you'll need to file Form 14039 (Identity Theft Affidavit) with the IRS.

Does this apply to credit card payments too? I usually pay my taxes with a credit card to get the points.