This is such a great example of why tax situations with blended families can be so tricky! I went through something similar a few years ago and learned some hard lessons about documentation. One thing I'd add to all the excellent advice here - make sure you're tracking the support amounts month by month, not just who paid what bills. The IRS support test looks at the total cost of supporting each person (housing, food, clothing, medical, education, etc.) and whether you provided more than half of EACH individual's total support for the year. Since you moved in together early 2024, you'll need to account for what your girlfriend spent on her child January-March when she was working, versus what you've contributed April-December. The same goes for your own baby - even though they were only born in July, you can claim the full year's worth of credits. Also, keep in mind that "support" includes fair rental value of housing. So if you're paying $2000/month rent and there are 4 people in the household, each person's housing support could be calculated as $500/month ($6000/year each). Add that to food, utilities, clothing, medical expenses, etc., and the numbers add up quickly. The split filing strategy mentioned above really can work well - I ended up saving about $1800 by having my partner claim one child while I claimed the other and filed Head of Household. Just make sure you both keep detailed records in case either return gets questioned!

This is such a comprehensive discussion already! I just wanted to add one more consideration that might be relevant to your situation - the Child and Dependent Care Credit. Since your girlfriend stopped working in April and you've been covering childcare costs (if any), you might be eligible for this credit in addition to everything else that's been mentioned. The credit can be worth up to $3,000 for one child or $6,000 for two or more children, depending on your income and the amount you spent on qualifying care. This could include daycare, after-school programs, or even paying someone to watch the kids while you work. What's interesting about your timing is that your girlfriend's work status changed mid-year. For the months she was working (January-March), any childcare expenses would need to be split based on who paid what. But from April onward, since you've been the sole provider, you'd likely qualify for the full credit on any care expenses you've paid. Just make sure to keep records of any payments to licensed daycare providers, babysitters, or after-school programs - you'll need their tax ID numbers or SSNs for the credit. Given all the other credits and deductions you might be eligible for, this could be another nice chunk of money back in your pocket!

Just went thru this last year. Filed amended returns for 2 years and got back almost $7k. The key was having the new accountant specifically document WHY the original returns were incorrect with specific tax code references. If its actual errors (not just different but valid approaches), the IRS generally approves the amendments without much hassle. My original accountant even ended up refunding my preparation fees when I showed him the detailed errors.

I'm dealing with a very similar situation right now! My accountant missed several obvious deductions and I'm out about $2,200. What I've learned so far is that you definitely have options, but timing matters a lot. First, definitely file those amended returns (Form 1040-X) as soon as possible. You generally have 3 years from the original filing date, but don't wait - the sooner you file, the sooner you get your refund. Second, document everything. Get written opinions from the other accountants about what was wrong with your original returns. This becomes crucial evidence if you need to pursue your original accountant for compensation. Third, many states have licensing boards for tax preparers that handle complaints about professional negligence. If your accountant is licensed (CPA, EA, etc.), filing a complaint can sometimes motivate them to resolve the issue quickly. The $3,800 you mentioned is significant enough that it's worth pursuing aggressively. Even if their engagement letter limits liability, gross negligence or clear professional errors often override those protections. Don't let them off the hook too easily - that's a lot of money to just write off as "oops.

Has anyone used TurboTax for reporting these kinds of acquisition expenses through an LLC with no revenue? Their interface is confusing me when I try to enter these expenses without any income.

One thing I haven't seen mentioned yet is the importance of distinguishing between investigation expenses and actual startup costs. The IRS treats these differently under Section 195. Investigation expenses are costs you incur to decide whether to enter a business or acquire a specific business. These are generally deductible immediately if you actually go into that business, but if you decide not to proceed, they're typically not deductible at all. However, once you've made the decision to proceed and are actively working toward acquisition, those expenses become startup costs which follow the $5,000 immediate deduction rule mentioned earlier. Given that you've already formed your LLC with the specific purpose of acquiring this business, it sounds like you've moved past the "investigation" phase into actual business operations. This should work in your favor for deductibility even if the deal falls through. Also, keep in mind that meals during business travel are only 50% deductible (or 100% if they were in 2021-2022 due to temporary COVID rules). Make sure you're separating meal costs from other travel expenses when you calculate your deductions.

Anyone know if the timing of the quitclaim affects how the IRS views this? I got my house in a divorce settlement last year but the quitclaim wasn't filed until months after our divorce was finalized. Worried this might cause problems when i eventually sell.

Just want to add some clarity on the capital gains exclusion that was mentioned earlier. Since you lived in the house from 2016-2020 (4 years) and then continued living there after the quitclaim until you sold in 2023, you definitely meet the 2-out-of-5-years requirement for the $250k exclusion as a single filer. Given your numbers: Original purchase $295k, sale price $495k, that's a $200k gross gain. But with your adjusted cost basis (original half + buyout amount + those improvements you mentioned), plus the $250k exclusion, you'll likely owe little to no capital gains tax. One thing to watch out for - make sure your divorce decree explicitly states the property transfer was part of the settlement. This helps establish that it was "incident to divorce" and keeps the transfer itself tax-neutral.

I went through the ID.me verification process about 6 months ago and wanted to share my experience since you're dealing with this for the first time. Here's what helped me get through it smoothly: **What triggered it:** In my case, it was because I had multiple income sources (part-time work + fellowship stipend) and claimed education credits - the IRS algorithm flagged it as needing verification. **The process I followed:** 1. Got the online notification first when trying to access my tax transcript 2. Started verification immediately rather than waiting for the physical letter 3. Gathered all documents beforehand: driver's license, passport (as backup), Social Security card, and recent bank statement 4. Used my laptop instead of phone - much more stable connection 5. Completed everything in one sitting (about 45 minutes total) **Key things that helped:** - Good lighting for the selfie verification (natural daylight near a window worked best) - Having backup documents ready in case primary ones didn't work - Taking screenshots at each step for my records - Being patient with the facial recognition - it took 3 tries but worked **Timeline:** My refund was released exactly 18 days after completing verification. The waiting period felt long but was actually pretty standard based on what I've seen others report. Since you mentioned having a more complex tax situation now, this verification is becoming pretty routine for recent grads with education credits, multiple income sources, or significant changes in their tax profile. It's annoying but legitimate, and once you're through it, future years should be smoother.

Connor, I just went through this process last month and totally get the anxiety! As a recent grad myself, here's what I learned: **The verification is actually pretty common for people in our situation.** The IRS tends to flag returns with education credits, multiple income sources (like TA/research work), or significant changes from previous years. It's not personal - just their fraud detection system being extra cautious. **My experience breakdown:** - Got online notification first when checking "Get Transcript" - Physical letter (5071C) arrived about 10 days later - Completed everything online through ID.me in about 35 minutes - Used laptop (mobile kept timing out on me) - Had driver's license, Social Security card, and recent bank statement ready - Selfie verification took 4 tries - good lighting is crucial! **Timeline:** Finished verification on a Tuesday, got email confirmation same day, refund hit my account 14 days later. **Pro tip for complex returns:** Since you mentioned your tax situation got more complex, keep detailed records of everything. Screenshot all confirmation pages and save the verification completion email. This documentation will be helpful if you need to reference it later or if future returns get flagged. The whole process felt intimidating at first but was actually more straightforward than expected. Just budget about an hour, have good internet/lighting, and be patient with the facial recognition part. You've got this! Let me know if you have specific questions about any part of the process - happy to share more details.