Does this apply if I'm under 26 but financially independent? I thought the ACA lets parents keep kids on insurance until 26 regardless of dependent status for taxes?

You're right that the ACA allows children to remain on their parents' health insurance until age 26, regardless of tax dependent status. That's a separate regulation from the tax rules. However, some employers offer additional pre-tax benefits for health insurance premiums for dependents, and those specific benefits might require tax dependent status under their cafeteria plan rules. It varies by employer, so your mom should check with her HR department to see if there would be any change in her pre-tax benefits if she doesn't claim you as a tax dependent.

This is important! I learned the hard way too. What's the best way to figure out the right withholding amount? Should OP use the IRS calculator or is there an easier way?

Thanks for this info! I'll check for updates to see if they add 2023 as an option. Do you think there's a risk of getting audited if I have to select "None" when I actually opened it in 2023? I'm paranoid about making mistakes on tax forms.

There's virtually no risk of being audited for selecting "None" when the correct year isn't available as an option. The IRS understands the limitations of tax software and is primarily concerned with accurate reporting of contribution amounts, not the specific year you opened the account. Your financial institution will be sending the IRS a Form 5498 in May that will confirm your contribution and when the account was opened, so the information will be properly documented regardless of what the software allows you to select now.

Thank you for explaining it so simply! I've been googling "Roth IRA basis" for hours and getting complicated explanations. So for my situation, if I contributed $3000 to my Roth IRA in 2023 (first time ever), my basis is just $3000, right?

You need at least the Deluxe version for most imports. The free version is super limited - basically only for people with W2 income only and standard deduction. And even then I think you have to manually enter the W2 info.

This! I can't stress enough to check everything that imports. Last year TurboTax imported my W2 but somehow my federal withholding amount was wrong. Would have completely messed up my refund if I hadn't noticed and fixed it.

Is there any way to know in advance which institutions are supported for the import?

Wait, seriously? So I might owe taxes on my scholarship money? Nobody told me that! How do I even report that on my tax return?

Yes, it's a common misunderstanding that all scholarship and grant money is tax-free. It's only tax-free to the extent it's used for qualified education expenses (tuition, fees, books, supplies, and equipment required for enrollment). Any excess is taxable. You report taxable scholarship income on your tax return as "wages, salaries, tips, etc." even though you didn't receive a W-2 for it. There should be a line in your tax software for "scholarships and grants not reported on W-2." Keep in mind this is separate from the strategy of deliberately treating Pell Grants as taxable to maximize AOTC - that's an additional choice you can make.

Thanks for bringing this up! I'm definitely still within my first 4 years of college, enrolled full-time, and don't have any drug convictions lol. My parents' income is around $90k combined, so I think we're still eligible for at least a partial credit? I'll double check with them.

You're welcome! With your parents' income at around $90k combined (assuming they're married filing jointly), they should still be eligible for the full AOTC. The phaseout doesn't begin until $160,000 for married couples filing jointly, so they're well below that threshold. If they were filing as single or head of household, the phaseout would start at $80,000, but based on what you've said, this doesn't seem to be a concern either way. Just make sure whoever claims the credit (either you or your parents) has enough tax liability to benefit from it, since only 40% of the AOTC is refundable.

Thank you for this insight. I hadn't considered doing just a consultation. Would that one hour really be enough to catch potential issues across multiple tax years including the business transition?

A one-hour consultation won't be comprehensive enough to catch everything across multiple years, but it would be enough time to identify major red flags in your approach and give you guidance on the areas where software typically fails for business returns. If you're going the DIY route, I'd actually recommend two consultations - one before you start to get a strategic approach, and one review after you've prepared the returns but before filing. The key is finding someone experienced with both the sole proprietor to LLC transition and back tax situations.

The Fresh Start program isn't actually a specific program you apply for - it's a collection of different IRS initiatives that make it easier to resolve tax debt. The main components are expanded installment agreements, offers in compromise with more flexible terms, and tax lien procedures. For OP's situation with unfiled returns, the most relevant part would be penalty abatement options after filing the back returns. First-time penalty abatement is available to many taxpayers who haven't had previous issues.