Has anyone else noticed that tax software companies seem to move more forms to their paid tiers every year? I swear H&R Block included Schedule B in their free version back in 2022.

This is exactly the kind of predatory practice that makes tax season so frustrating for regular people. You're absolutely right that Schedule B isn't required for $4 in dividends - the IRS threshold is $1,500, and tax software companies know this but deliberately create confusion to drive upgrades. I've seen this same issue with multiple tax prep companies. They detect any dividend income and immediately flag you for their premium service, even when it's completely unnecessary. It's particularly frustrating because they market their "free" versions heavily but then hit you with these surprise charges right when you're trying to file. Since you've already invested time in H&R Block, I'd suggest trying the workaround that Fatima mentioned - temporarily removing the dividend entry to get past their upgrade checkpoint, then adding it back on the main 1040 form where it belongs. If that doesn't work, FreeTaxUSA and IRS Free File are solid alternatives that won't nickel and dime you for basic forms. The fact that your situation is identical to last year but suddenly requires an "upgrade" tells you everything you need to know about their business model. Don't let them bully you into paying for something you don't legally need.

Just FYI as a tax preparer, bring ALL your medical receipts to your appointment, not just COBRA. Many people forget about mileage to medical appointments (17 cents per mile for 2024), prescription costs, dental expenses, eye care, medical equipment, etc. Every dollar helps get you closer to that 7.5% threshold.

Great question about COBRA and taxes! Just wanted to add one important point that might help you save money - if you have any self-employment income from your freelance work, you might qualify for the self-employed health insurance deduction for your COBRA premiums. This is WAY better than the itemized medical expense deduction because it's an above-the-line deduction (meaning it reduces your AGI directly) and you can still take the standard deduction. Since you mentioned having 1099 income, definitely ask your tax preparer about this. The self-employed health insurance deduction lets you deduct health insurance premiums (including COBRA) as long as you have net self-employment income and you're not eligible for coverage through your spouse's employer plan. Given that you're both on COBRA, this could be a huge tax saver. For documentation, bring your 1099s showing the freelance income and all your COBRA payment records. The preparer can determine if this applies to your situation - it could potentially save you way more than trying to meet that 7.5% AGI threshold for itemized medical expenses!

Just wanted to confirm what others have said - you're definitely in the clear with accounts under $2000! I had a similar situation with freelance income from abroad and was worried I'd missed something important. One thing that helped me was creating a simple spreadsheet to track my foreign account balances monthly. Even though I knew I was well under the thresholds, it gave me peace of mind and would be useful documentation if I ever needed it. I included the account name, currency, local balance, USD equivalent using year-end exchange rates, and any income generated. The key takeaway from my research and experience: income reporting (which you've done correctly on Schedule C) is completely separate from account reporting requirements. Since you're under both the FBAR $10,000 threshold and the much higher Form 8938 thresholds, you only need to worry about that Schedule B checkbox if you had any interest income from the accounts. Keep doing what you're doing - you've handled this correctly!

I've been in a very similar situation and can confirm you're handling this correctly! With foreign accounts totaling under $2000, you're well below both the FBAR $10,000 threshold and the much higher Form 8938 thresholds. One thing I learned from my tax advisor that might help: even though you don't need to file FBAR or Form 8938, make sure to document your maximum account balances throughout the year (not just year-end balances). This is helpful in case your financial situation changes in future years and you approach the reporting thresholds. Also, don't forget about Schedule B Part III - if your foreign accounts generated any interest income (even just a few dollars), you'll need to report that interest income and check "Yes" for having foreign accounts on Schedule B, separate from the FBAR requirements. You've already done the most important part by properly reporting the freelance income on Schedule C. The account reporting requirements are completely separate from income reporting, and with your low balances, you're in the clear on the account side. Keep good records and you'll be fine!

My tax software kept flagging my life insurance 1099-INT as an error when I tried to mark part of it as non-taxable. Anyone else have this problem? Any recommendations for tax software that handles this correctly?

This is such a helpful thread! I've been dealing with a similar situation with my universal life policy. One thing I learned from my insurance agent is that you should also check if your policy has any "cost of insurance" charges that might affect the taxable portion of the interest. For anyone still confused about their specific situation, I'd recommend requesting a detailed annual statement from your insurance company that breaks down exactly what portion of any credited amounts are considered taxable interest versus non-taxable policy adjustments. Most companies can provide this breakdown if you ask specifically for tax reporting purposes. Also worth noting - if you've been consistently reporting the full 1099-INT amount as taxable income for several years and it turns out some portion wasn't taxable, you generally have three years from the original filing date to amend those returns and potentially get refunds. Don't stress too much about past years, but definitely get it right going forward!

Just a heads up about income limits for these education credits since no one mentioned it yet. The AOTC starts phasing out if your modified adjusted gross income is above $80,000 ($160,000 if married filing jointly) and completely phases out at $90,000 ($180,000 for joint filers). The Lifetime Learning Credit has lower limits - it starts phasing out at $59,000 ($118,000 for joint filers) and completely phases out at $69,000 ($138,000 for joint filers). So if you or your parents make above these amounts, you might not get the full credit or any credit at all.

This is exactly why I always recommend students review their tax returns carefully! I went through the same thing my junior year - realized I had been missing out on education credits for two years. One thing that might help explain why TurboTax didn't automatically give you the credits: even if you entered your 1098-T, the software needs you to confirm you want to claim the credits and that you meet all the eligibility requirements. Sometimes the questions can be confusing or easy to skip through. Also, keep in mind that if you're working part-time while in school, your income level affects how much of the credit you can actually use. The American Opportunity Credit is partially refundable (up to $1,000), but if your tax liability is low, you might not see the full $2,500 benefit. I'd definitely recommend going back through your previous returns if you think you missed claiming these credits. You can amend returns for the last three years, and with $14,000 in annual education expenses, you're likely leaving significant money on the table. The AOTC alone could have saved you up to $2,500 per year for your first four years of college.