Thanks for bringing this up! My kids actually both work part-time while in school. One made about $14,000 last year and the other around $12,500. Would that be enough income to take full advantage of the non-refundable portion of the AOC?

With those income levels, they should have enough tax liability to take advantage of most if not all of the non-refundable portion of the AOC. At approximately $12,500-$14,000 of income, they would have roughly $1,250-$1,400 in federal tax liability (depending on other factors), which means they could utilize most of the non-refundable portion. They'd definitely get the full $1,000 refundable portion, plus be able to offset most of their tax liability with the remaining credit. This makes your strategy even more viable since they have enough income to benefit substantially from claiming the credit themselves.

Is that agreement really legally required? I never thought about needing documentation between family members.

Thanks for this tip! How long does it typically take for transcripts to become available after e-filing? Is it something I can access immediately after getting the acceptance confirmation?

Transcripts are usually available within 2-3 weeks after your e-filed return is accepted, sometimes even faster. You won't have access immediately after acceptance - the IRS needs to do some initial processing first. You can request them through the "Get Transcript" tool on IRS.gov once they're available. If you set up an online account with the IRS in advance, you'll be ready to download them the moment they're processed. Some mortgage lenders can also request the transcripts directly through a service called 4506-T if you sign an authorization form, which might save you some time.

I tried this route last year. You need to make an appointment first by calling 844-545-5640. They won't just let you walk in anymore. When I went, they helped me fill out the forms but still had to submit them through regular channels. They did give me a stamped copy though which my lender accepted as proof of filing.

Do these VITA places have actual tax pros or just volunteers? I'm nervous about having someone who doesn't really know what they're doing handle my taxes, even if it's free.

They're volunteers but they're all IRS-certified and have to pass tax law training. Many are accounting students, retired tax professionals, or people who work in finance who volunteer their time. Each return also gets quality reviewed by a second volunteer before it's submitted. They're especially good with straightforward tax situations like W2 income. I volunteered with them for two years and the training was really comprehensive. For complex situations involving businesses or complicated investments, you might want a paid professional, but for basic W2 filing, they're absolutely qualified.

TurboTax is notorious for advertising "free" but then charging for almost everything. I've used FreeTaxUSA for the past 4 years including for a late 2022 W2 filing and it's actually free for federal (like $15 for state). Way more honest than TurboTax.

TurboTax is the WORST for this! They've been sued multiple times for their deceptive "free" marketing. They have a truly free version that's hard to find on their site, and they'll try to upsell you at every step. For basic W2 filing, use FreeTaxUSA or Cash App Taxes instead - they're actually free unlike TurboTax.

Do you know if the age requirements are changing too? Currently it's under 17, but I've heard rumors they might extend it for older dependents like they did during COVID.

The age requirement is staying the same under the current proposal - children must be under 17 at the end of the tax year to qualify for the Child Tax Credit. The temporary expansion during COVID that included 17-year-olds is not part of this new legislation. What's staying consistent is the income phase-out thresholds - $200,000 for single filers and $400,000 for married filing jointly. The credit begins to reduce by $50 for each $1,000 of income above these thresholds.

Thank you! This is exactly what I was trying to figure out. So my ex who didn't work in 2023 won't be able to claim the CTC for the kids for the 2023 tax year, even with these new changes coming? But potentially for 2024 taxes she could use her 2023 income (if she had any) to qualify?

That's exactly right. For the 2023 tax return that your ex will file in the coming months, she would need earned income in 2023 to benefit from the refundable portion of the CTC. The new changes won't help for this coming tax season. For the 2024 tax year (which will be filed in early 2025), the new rules would take effect. At that point, she could potentially use either her 2023 income OR her 2024 income to qualify for the CTC, whichever is more beneficial. But for the return she's about to file for 2023, the current rules still apply.

What about if I know I need to file an extension? Does that need to be done by 11:59pm on the 15th too? And is there any downside to filing an extension?

Yes, the extension request (Form 4868) must also be filed by 11:59pm local time on April 15th. Electronic is best because you get immediate confirmation. The main downside to an extension is that it only extends the time to file your paperwork, not to pay what you owe. You still need to estimate what you might owe and pay that by April 15th to avoid penalties and interest. If you're getting a refund, there's no downside at all to filing an extension. And having an extension actually slightly reduces your audit risk according to some statistics, though that shouldn't be your main reason for filing one.

This saved me last year! My local post office has a self-service kiosk that's open until midnight, and the postmark from that counts as official. Double check your local post office hours if you're cutting it close.

Great tip about the self-service kiosk! Not all post offices have them though, so definitely check ahead of time. And remember that private delivery services like FedEx or UPS can also be used, but the IRS only accepts certain types of delivery services as "timely filed" - there's an official list on the IRS website. One more thing: if you're mailing a payment with your return or extension, use Form 1040-V for the payment. Makes processing faster and ensures your payment gets properly credited to your account.