Has anyone used TurboTax for claiming these energy credits? I'm worried about messing it up and don't want to pay an accountant if I don't have to.

Great thread here! I'm actually a tax professional who specializes in energy credits, and I wanted to add a few important points that might help everyone. First, @Payton Black - you're absolutely right to be cautious about that $15k investment. The 30% credit is substantial, but make sure your installer is providing equipment that meets IRS specifications. I've seen too many clients get surprised when their "qualifying" system actually doesn't meet the technical requirements. A few key things to remember: 1. The credit applies to the tax year when the system is "placed in service" - not when you sign the contract or make payments 2. If your tax liability is less than the credit amount, you can carry forward the unused portion to future tax years 3. Keep manufacturer specifications showing the battery capacity - the IRS may request this during processing Also, while the online tools people mentioned can be helpful for initial guidance, I'd still recommend having a tax professional review your specific situation, especially with a $15k system where the credit could be $4,500+. The cost of a consultation is usually much less than the risk of filing incorrectly. One last tip: start gathering your documentation now. Don't wait until tax season!

Just a quick warning from someone who's been there - make SURE you and your parents are on the same page about this! If you file as independent but your parents still claim you as a dependent, it'll cause BOTH your returns to get flagged by the IRS. My friend and his parents both got letters from the IRS because of this exact situation. It delayed their refunds and they had to submit additional documentation to prove who was right. Super annoying headache that took months to resolve.

Great question Andre! I went through this exact same confusion when I first started filing independently. The key thing to understand is that "independent" and "dependent" are two different concepts in tax terms. When you file your own tax return, you're filing as an "independent taxpayer" - meaning you're responsible for your own taxes. But you can't claim yourself as your own dependent because dependents are OTHER people you support (like children or elderly parents). What you'll do is: 1. File with "Single" status (assuming you're unmarried) 2. Check the box that says "No one can claim me as a dependent" 3. This automatically gives you your full standard deduction ($13,850 for 2023) The good news is that filing independently usually means more money back! You'll get the full standard deduction and may qualify for credits that weren't available when you were a dependent. Just make absolutely sure your parents know they can't claim you this year - if you both try to claim the same person (you), it creates a big mess with the IRS. TurboTax should walk you through this pretty clearly once you indicate that no one else can claim you as a dependent. You're on the right track!

I just wanted to add my experience after dealing with this same frustrating situation! Like many others here, I was getting huge refunds (around $2,800 last year) and finally realized I needed to stop giving the IRS an interest-free loan. After reading through all the helpful advice in this thread, I made two key changes to my W4: First, I unchecked the "multiple jobs" box on my primary job since my side work is relatively small compared to my main income. Second, I used the calculation method several people mentioned - took my refund amount, divided by pay periods (I'm paid bi-weekly), then multiplied by about 10 to get roughly $1,080 to put in Step 4(b) for additional deductions. The difference was immediate! My first paycheck after the change had an extra $108 that used to go to overwithholding. That's over $2,800 per year I now have access to throughout the year instead of waiting for the government to return my own money. For anyone still hesitant about making this change - I also used the IRS withholding estimator tool to double-check my calculations, which gave me confidence I wouldn't swing too far and owe penalties. Even if I end up owing a small amount at tax time, it's worth it to have my money working for me all year instead of sitting in the government's coffers earning zero interest.

I've been dealing with the exact same overwithholding issue and finally found a solution that worked perfectly! After getting a $4,200 refund last year (which was basically a free loan to the government), I made the changes several people have mentioned here and it's been a game-changer. The key insight for me was realizing that checking "multiple jobs" on my main W4 was causing massive overwithholding because the system treats all jobs as if they're similar in size. Since my side work is only about 10% of my main income, this was completely wrong for my situation. Here's exactly what I did: I unchecked the "multiple jobs" box on my primary job W4 and used Step 4(b) to add $1,600 in additional deductions (calculated using the method others shared - refund ÷ pay periods × 10). My first paycheck had an extra $162 that used to go to overwithholding! I was nervous about owing at tax time, but I used the IRS withholding calculator mid-year to check my progress and I'm right on track to break even or get a small refund. Having access to an extra $4,200 throughout the year instead of waiting for the IRS to return it has been amazing - I've been able to boost my emergency fund and actually earn interest on my own money for once. For anyone still hesitant, I'd say just do it. Even if you end up owing a few hundred (as long as it's under $1,000 to avoid penalties), you're still way better off than giving the government a massive interest-free loan every year.

Just to add another option - you might consider having your higher-earning partner claim one child and file as HOH, while you claim the other child, also filing as HOH. This way, both of you get some tax benefits. This only works if you can legitimately maintain two separate households though, which doesn't sound like your situation. If you all live together in one home, only one person can claim HOH status. The other must file as Single. Also, with your business income at $27k, you'd probably benefit more from claiming both kids for EITC purposes. That credit phases out at higher incomes, so your partner wouldn't benefit from it anyway.

As someone who went through a similar situation a few years ago, I can confirm what others have said - you'll want to claim both children and file as Head of Household, while your partner files as Single. The key thing to remember is that the IRS cares about who actually has custody and provides care for the children, not just who earns more money. Since you're the primary caregiver and have lower income, you'll maximize your household's overall tax benefits by claiming both kids. You'll be eligible for the full Child Tax Credit (up to $2,000 per child) and potentially significant EITC benefits with your $27k income. Your partner, making $120k, would phase out of most child-related credits anyway due to income limits. By filing as Single without dependents, they avoid any complications while you capture all the available credits. Just make sure you keep good records showing that the children lived with you for more than half the year and that you provided more than half of each child's support - even if your partner contributes more to overall household expenses, the IRS looks at support provided specifically to each child.

Honestly, don't make such an important life decision like marriage just for tax purposes! My husband and I rushed our wedding for tax benefits with our new house and while the savings were nice, we both kinda regret not having the wedding we really wanted. The tax benefits weren't actually that huge in the end - like maybe $1200 for the year? Not worth rushing something as important as marriage imho. Plus the stress of closing on a house AND planning even a small wedding in the same month was insane!!

As someone who works in tax preparation, I'd recommend running the actual numbers before making any decisions! Here are some key considerations for your situation: **Potential Benefits of Marriage:** - At your income levels ($72k/$78k), you'll likely benefit from the higher married filing jointly standard deduction - Combined mortgage interest and property taxes might push you over the standard deduction threshold, making itemizing worthwhile - Student loan interest deduction phases out at higher income levels - marriage could help or hurt depending on your combined income **Things to Calculate:** - Your estimated mortgage interest for 2025 (ask your lender for projections) - Property taxes for the portion of the year you'll own the home - Whether your combined itemized deductions exceed the married standard deduction (~$30,000 for 2025) **My honest advice:** Don't rush marriage just for taxes. The savings might be smaller than you think, and there are administrative headaches with changing names, benefits, etc. right after closing on a house. If you're planning to marry anyway, a small courthouse ceremony isn't the worst idea, but make sure you're doing it for the right reasons. The tax code changes frequently, but marriage is (hopefully!) permanent. Have you considered consulting with a tax professional who can run scenarios with your actual numbers?