Thanks for pointing that out about the two-year limit! I think I got the year wrong in my original post - stepdad actually passed in 2021, not 2022, so this would indeed be the final year mom could use QSS status. My brother's income is definitely over that $4,700 threshold - he works part-time and makes around $18,000. Sounds like that automatically disqualifies him as a "qualifying person" for mom's QSS status then? So she'll have to file as single?

Yes, if your brother's income is around $18,000, that unfortunately means he cannot be considered a qualifying relative for tax purposes, regardless of how much support your mom provides. The gross income test is a firm threshold. Since he can't be a qualifying person for QSS purposes, your mom will need to file as Single for her 2023 tax return. For 2024 and beyond, she'll continue filing as Single unless her circumstances change (like remarriage).

This is actually a really good point - a lot of people don't realize there's still hope for HoH status! I work at a tax prep office and see this misconception all the time. One correction though - for Head of Household, if you're trying to qualify using a relative who isn't your child, that person MUST be your dependent. So the brother still needs to meet the qualifying relative tests including the gross income test.

Wait this sounds too good to be true. You're saying I can just deduct 20% of my income automatically? Does this apply to all 1099 work or only certain types? I do freelance programming.

Do you know which states offer these additional education credits? I'm in California and wondering if there's something similar I could claim.

I don't know all the states, but I know California doesn't have a specific education credit like New York does. Some states that definitely have education tax benefits include Indiana, Massachusetts, Michigan, and Wisconsin. The best way to find out is to check your state's department of revenue website or look at your state tax forms for education-related credits or deductions. Sometimes they're called different things like "Education Expense Credit" or "Tuition and Fees Deduction.

Thanks for the warning! Since I'm returning to college and have taken classes years ago, I'll need to figure out if I've already used up my 4 years of American Opportunity Credit eligibility. Is there any way to check that, or do I just need to look through my old tax returns?

You'll definitely want to check your previous returns if you have them. The AOC can only be claimed for 4 tax years total, and they don't have to be consecutive. If you went to college right after high school and claimed it then, you might have used it up already. If you don't have your old returns, you can get tax transcripts from the IRS website that will show if you claimed the credit before. Just go to IRS.gov and search for "Get Transcript." This is something you want to be 100% sure about because claiming it a 5th time would definitely trigger problems.

Did you find it difficult to negotiate that part-time with benefits arrangement? I've been thinking about trying something similar but worried companies would just laugh at the idea. Any tips on how to approach it?

I was definitely nervous about asking! The key was approaching companies that already advertised flexible work arrangements rather than trying to convince traditional employers. I researched which companies in my field were rated well for work-life balance and specifically mentioned I was looking for part-time professional work with benefits during interviews. It took about 6 interviews before I found the right fit. I also gained leverage by offering to work reduced hours for slightly reduced pay percentage (I work 25 hours but get paid 70% of full-time salary). The company saves some money while still getting an experienced professional, and I get the flexible schedule plus benefits I needed.

I'd never thought to check the library for financial resources. What kinds of databases did they have access to? Was it mostly general info or could you get personalized advice too?

My employer actually picks the plan and pays the premium directly to the marketplace. They just give me this weird separate W-2 at the end of the year showing what they paid. So based on what you're saying, that would be the first scenario? And does that change how I should enter it in TurboTax?

Yes, if your employer selects and pays for the plan directly, that's more like traditional employer-provided coverage, just administered through the marketplace instead of a group plan. In this case, you would enter the W-2 normally in TurboTax, and the software should recognize that these amounts aren't subject to federal income tax. Just make sure when entering the W-2 that you include any codes shown in Box 12, as these codes tell the tax software how to treat different types of income. If your W-2 has code DD in Box 12, that explicitly marks the amount as employer-provided health coverage, which is not included in taxable income.

I've had issues with TurboTax too. Try checking if there's a code in Box 12 of your W-2 (like DD for employer health coverage). Sometimes TurboTax doesn't recognize these codes if you don't enter them exactly. Also worth reviewing the "Review" section before filing to make sure the taxable income calculation looks right.

Thanks for the tip! I'll definitely double check the Box 12 codes this time. I think last year I might have skipped over that part since I didn't know what those codes meant. Really appreciate the advice!