Thanks for mentioning the form! Quick question - is it Form 8832 or did you mean something else? I've been looking online and Form 8832 seems to be related to business entity classification, not childcare expenses. Is there a different form number I should be asking my son's Montessori for?

You're absolutely right, I made a mistake with the form number. I meant to say that you should get documentation from the childcare provider, which is typically reported on Form 2441, not 8832. Most providers will give you a receipt or year-end statement with their tax ID (EIN) and the total amount you paid during the year. Some providers will complete Form W-10 (Dependent Care Provider's Identification and Certification) which gives you their official information for tax purposes. That's what you'll need when completing Form 2441 to claim the Child and Dependent Care Credit. Thanks for catching my error!

Yes! I successfully did this last year. The key is that you must have custody for more than half the nights of the year to claim the Dependent Care Credit, even if your ex claims the child as a dependent due to your agreement. I had to paper file though, because TurboTax kept giving me errors when I tried to enter it this way.

Thanks for explaining! So if I understand correctly, on my tax return I would indicate that I CANNOT be claimed as a dependent on someone else's return (since I provide more than half my own support), and then separately I'd try to claim my brother as my dependent if I meet all those tests you listed?

That's exactly right. You would check the box indicating that no one else can claim you as a dependent on their return. This is different from "claiming yourself as a dependent" which isn't a thing. Then separately, you would list your brother as your dependent if you meet all the qualifying relative tests. Make sure you have documentation showing you provided more than half his support - things like receipts for rent, utilities, food, clothing, medical expenses, etc. This is especially important since claiming siblings is something the IRS sometimes looks at more closely.

You're right! A sibling can be a qualifying child if they're under 19 (or 24 if a student), they lived with you for more than half the year, they didn't provide more than half of their own support, and they meet the other tests. The benefit of qualifying child vs. qualifying relative is that there's no income limit for a qualifying child. So even if OP's brother made more than $4,950, they might still be able to claim him as a dependent under the qualifying child rules.

Thanks for mentioning this! Do you know if I would qualify for the Child Tax Credit specifically, or would it be the Credit for Other Dependents since I'm the grandparent, not the parent? Also, would my daughter still be able to get the disability benefits if I claim the kids on my taxes?

You can potentially qualify for the Child Tax Credit even as a grandparent! The relationship test for the CTC includes grandchildren. As long as they meet the other tests (lived with you more than half the year, you provided more than half their support, they're under 17, etc.), you can claim the full Child Tax Credit, which is worth much more than the Credit for Other Dependents. Your daughter can continue receiving the disability benefits for the children regardless of who claims them on taxes. The tax dependency status and disability benefits eligibility are separate systems. The important thing is that you're actually using the majority of resources (including your own money plus a portion of those benefits) to support the children.

Yes! We claim my wife's brother who has autism and we deduct a lot of his therapy expenses as medical expenses. If their medical expenses exceed 7.5% of your AGI, you can itemize and deduct them. Also look into FSA or HSA accounts to pay for these expenses pre-tax if possible.

Wait, really? That would be amazing. Do I have to specifically ask for this program by name when I contact them? And would I qualify even though I had the extension and still missed it?

Yes, you should specifically ask for "First Time Penalty Abatement" when you contact them after filing. Don't rely on them to offer it - many IRS agents won't mention it unless you ask. You would likely still qualify despite missing your extension deadline. The main requirement is having a clean compliance history for the three prior tax years (meaning you filed and paid on time, or had valid extensions and paid by those deadlines). The IRS sees this as a one-time courtesy for otherwise compliant taxpayers.

I'm so sorry about your mom. I was in a similar situation with my father's passing. The IRS does have something called "reasonable cause" for penalty relief. You'll need to attach a letter explaining the circumstances and showing how the death and estate duties prevented you from filing on time. Include any documentation you can (death certificate, executor appointment papers). In my experience, they were actually pretty understanding.

17 Do you actually attach a physical note to the return? Or is there a specific form for name changes that should be included?

11 If you're filing electronically (which most people do now), there's no need for a physical note. There's usually a section in most tax software where you can explain special circumstances, but it's not even really necessary. For paper returns, you can include a brief statement with your return explaining the timing of your name change. There's no specific form required just for a name change situation like this. The most important thing is making sure your current legal name (your married name) is what you use on the tax return itself, and that your SSN is correct on all documents.

10 You should be fine. The IRS usually processes returns pretty quickly, and they'll match based on your SSN. But if you're concerned, you might want to keep an eye on your return status using the "Where's My Refund" tool on the IRS website.