16 Does this $0 AGI trick also apply if you didn't file taxes at all the previous year? I wasn't required to file in 2023 but now need to file for 2024.

3 Yes, that's exactly right! If you weren't required to file in 2023 and didn't file, you would use $0 as your prior-year AGI when filing your 2024 return electronically. The $0 AGI entry works in several scenarios: when you filed previous year returns on paper, when you didn't file the previous year at all, or when you recently filed the previous year's return and it hasn't fully processed in the IRS system yet.

9 I switched from Tax Act to FreeTaxUSA this year and found it much more user-friendly, especially with handling prior year AGI issues. They have a specific section that explains what to do if you filed previous years' returns recently.

AVOID THE CHAINS! I worked at one of the big ones for two tax seasons. The training is minimal and they push quantity over quality. Most of the preparers there could handle basic W-2 returns but would be completely lost with brokerage statements or anything remotely complex. For your situation with multiple accounts and a new dependent, you definitely want either an independent EA or CPA. The price difference isn't huge but the expertise gap is massive. The chains often use software that's basically the same as consumer tax software, just with a person inputting the data instead of you.

Thanks for the inside info! That's exactly what I was worried about. I'll start looking for independent pros instead of going to one of the big chains. Been seeing their commercials everywhere so was tempted by the convenience, but sounds like it's worth finding someone with more expertise.

Moving to a different state doesn't change how you report health insurance on your federal taxes. The requirement for qualifying health coverage is federal, not state-specific. The only potential complication would be if you moved to or from a state that has its own individual mandate (like California, Massachusetts, New Jersey, Rhode Island, or DC). Those states might require additional reporting on your state tax return, but it doesn't affect your federal return. As long as you maintained continuous coverage during your move, you're all set for federal tax purposes.

You don't need to worry! When you file jointly, you're just verifying that everyone in your household had coverage. Your wife doesn't need to report you dropping off her plan. The 1095 forms you each receive will show the coverage periods for each person, and as long as you both had continuous coverage (even if through different plans at different times), you're good to go!

Do you know which states offer free filing? I'm in Ohio and always end up paying for state filing even when I get the federal for free.

I don't have a comprehensive list for all states, but I know Ohio has something called Ohio I-File which is a free electronic filing service. It's separate from the IRS Free File program though, so you'd need to go directly to the Ohio Department of Taxation website to access it. Many states actually do offer some form of free filing, but they don't advertise it well. Check your state's tax department website and look specifically for terms like "free file" or "e-file." Sometimes you need to dig around a bit to find the free options.

Next time try FreeTaxUSA - they handle HSA and basic investment stuff on their free version. I've used them for years and only pay like $15 for state filing. Their federal filing is free regardless of complexity for most situations.

Thanks for bringing that up about her student aid. She did get some grants, but they all went directly to tuition and books, so I think those are tax-free? She doesn't have any loans. About claiming both her and her son - that's good to know. If I had to choose, would it be more beneficial to claim her or him for tax purposes?

Grants that went directly to qualified educational expenses like tuition and required books are generally not taxable, so you're probably right that she doesn't need to file if that was her only income beyond the child support (which isn't taxable to the recipient). As for whether to claim her or her son, it usually makes more financial sense to claim the child if you have to choose. A qualifying child can potentially make you eligible for credits like the Child Tax Credit (worth up to $2,000 per qualifying child) and potentially the Earned Income Credit if your income falls in the eligible range. These are typically worth more than the standard dependent deduction you'd get for claiming your girlfriend.

100% this! I work at a tax prep office and the #1 issue we see with dependent claims is lack of documentation. Keep receipts for major purchases, rent payments, utilities, etc. If you're audited, you'll need to prove you provided over half of the child's total support.