Do you know if this works if you used the free version? I always use different free services each year depending on which one will let me file for free, so I'm not sure if they save returns for the free users.

Yes, it generally works even with the free versions! I've used the free version of TurboTax for years, and they still save all my returns. The only difference is how long they store them - some free versions might only keep them for 3 years while paid versions might store them for 7+ years. Even if you used different services, it's worth checking all of them. Just make sure you're logging in with the same email you used when you filed in 2020. Sometimes people forget which email they used for tax services.

This worked for me! My return kept getting rejected and I was panicking. Tried the $0 AGI trick and it went through immediately. Thanks for the tip!

Do you know if Cash App Taxes handles education credits well? My 1098-T has some scholarship money listed on it too and I'm not sure how that affects things.

Cash App Taxes definitely handles education credits well! It walks you through determining which education credit (American Opportunity or Lifetime Learning) is best for you based on your situation. For scholarships on your 1098-T, it will guide you through which portions might be taxable vs. non-taxable depending on what the money was used for (tuition vs. room and board, etc.). The interface asks clear questions to help sort this out - much more straightforward than you'd expect. Their help articles explain things in simple terms too if you get confused at any point.

This! I used this last year and got TurboTax completely free. They hide this option when you go directly to their websites.

Exactly! These companies deliberately hide their free offerings that they're required to provide through the IRS Free File program. It's called "dark patterns" in website design - they make the truly free versions hard to find if you go directly to their sites, then trick you into their paid versions. Always start at the official IRS Free File page (irs.gov/freefile) and click through from there. That way you're guaranteed to get the truly free version if you qualify based on income. Saved me $80 last year for essentially the same exact service.

Are there any downsides to filing when you don't have to? Like does it trigger any extra scrutiny or anything?

There are really no downsides to filing when not required. It doesn't trigger extra scrutiny or increase your audit risk. The IRS actually appreciates voluntary compliance. Filing an unnecessary return might be a slight inconvenience, but many tax software options are free for simple returns with low income. Plus, getting in the habit of filing annually helps you understand the process better for when you do have more complex tax situations in the future.

Yes, that changes things! Any amount of capital gains (including crypto) technically requires filing, regardless of how small the amount. The IRS is particularly focused on cryptocurrency transactions. Even $200 in crypto gains should be reported.

What if one person gets bonuses that vary year to year? That's what always throws off our withholding calculations.

For variable bonuses, I recommend using the IRS Withholding Estimator tool and updating your W-4 after any significant bonus payment. Most companies withhold bonuses at a flat 22%, which might not be enough depending on your tax bracket. Another approach is to estimate your total bonus amount for the year (maybe based on last year plus a little extra) and add additional withholding in Step 4(c) to cover the difference. Then if you get more than expected, you can submit a new W-4 to adjust. It's a bit of work, but it's better than getting hit with a big tax bill and possibly underpayment penalties.

This is the clearest explanation I've seen! One question - if my spouse doesn't work currently but might start later this year, should I still check that box in Step 2c now? Or wait until they actually get a job?

That's a really good point I hadn't considered fully. My daughter did have an internship last summer and works part-time during school, probably earning around $14,000 for the year. Would that be enough to utilize most of the credit?

With $14,000 in earnings, your daughter should have enough tax liability to utilize a good portion of the non-refundable part of the AOTC. After the standard deduction (around $13,850 for 2023), she'll have a small taxable income. Even with minimal tax liability, she'll still get the $1,000 refundable portion, plus whatever portion of the $1,500 non-refundable part her tax liability allows. So while she might not get the full $2,500, she'll likely get significantly more than $1,000. Definitely worth calculating both scenarios to see which benefits your family more overall.

Yes, scholarships definitely impact the AOTC calculation! Tax-free scholarships that are used for qualified education expenses (tuition and required fees) reduce the amount of expenses eligible for the credit. However, if the scholarship is used for room and board (by including it as taxable income), then it doesn't reduce qualified expenses.