Just a heads up, I was having the same issues with TaxAct but found that it works if you use Microsoft Edge in InPrivate mode. Something about their scripts conflicts with certain browser extensions. Not ideal but might help if you're stuck with them and can't get a refund.

This is why I never pay for tax software until I'm ready to file. I always use the free version to input everything, then only upgrade at the very end if I need to. That way if there are issues, I haven't spent any money yet. TaxAct worked fine for me last year but I'm avoiding them this year after seeing so many complaints.

Have you considered using a tax professional instead of DIY software? I used to struggle with Schedule E every year until I found a CPA who specializes in real estate. She charges $350 but saved me over $2000 in deductions I was missing.

I feel your pain with FreeTaxUSA's Schedule E limitations! I ran into similar issues last year with depreciation calculations that just wouldn't compute correctly. One thing that helped me was double-checking that I had entered my property's placed-in-service date correctly - sometimes even a small error there can throw off the entire depreciation calculation. For this year, I ended up using TaxSlayer Premium which handles Schedule E much better than FreeTaxUSA. It's about $60 but allows manual overrides on depreciation calculations when their automatic calculations don't work. The interface isn't as clean as some others, but it gets the job done for rental properties. If you're comfortable with your Excel template and it's been working for 8 years, honestly you might want to stick with what works. You could prepare your Schedule E in Excel and then manually enter those final numbers into whatever e-filing software you choose, just to get the electronic filing benefit.

There's another possibility that H&R Block software sometimes messes up on: Did you indicate that you were enrolled at least half-time for one academic period in 2023? And did you verify that this is your 1st, 2nd, 3rd, or 4th year claiming AOTC? You can only claim it for 4 years total. I had this issue last year where the software didn't recognize my eligibility because I accidentally indicated it was my 5th year claiming the credit (it wasn't). The software immediately disqualified me without explanation.

Hey everyone! I'm a tax preparer and see this exact situation all the time. Based on what you've shared, I think there are a few things to check: First, definitely verify with your parents about the dependency status - that's crucial and could be the main issue. Second, for the scholarship allocation that others mentioned, it's totally legitimate. The IRS allows you to treat scholarship money used for room/board as taxable income, which then frees up your actual tuition payments to qualify for the AOTC. You'll pay some tax on that scholarship portion, but the credit is usually worth way more. Third, make sure in H&R Block that you're answering "No" to whether this is your 5th+ year claiming AOTC, and "Yes" to being enrolled at least half-time. Finally, don't forget you can add books, supplies, and required equipment costs to your qualified expenses even though they don't show on the 1098-T. Keep those receipts! The math usually works out that claiming the AOTC yourself (if you file independently) gives your family more money back than your parents claiming you as a dependent, especially since you're in a lower tax bracket. Good luck!

Has anyone in a similar situation actually been audited over this? My partner and I split our mortgage 50/50 but we've been claiming it unequally (higher earner takes more) for years with no issues.

Another option to consider is consulting with a tax professional who specializes in these situations. I know it costs money upfront, but given the complexity of your situation and the potential tax savings, it might be worth the investment. A CPA can review your specific financial arrangement and provide written documentation of their recommendation. This gives you professional backing if the IRS ever questions your filing approach. They can also run the numbers on multiple scenarios (splitting 50/50, one person claiming all, etc.) to show you exactly which saves the most money. I learned this the hard way - tried to figure it out myself for two years and missed out on significant savings. Finally paid for a consultation and discovered I'd been leaving money on the table. The consultation fee paid for itself in the first year through better tax planning.

Another consideration: If you've ever claimed depreciation on property or business equipment, you need to keep those records as long as you own the asset, plus 3-7 years after you dispose of it. Found this out the hard way after selling a rental property and realizing I needed documentation from 12 years ago!

As someone who just went through this exact same process, I can tell you that the 3-year rule is generally correct for most people, but definitely check if you fall into any of the exceptions mentioned by Marina. One thing I wish I'd known earlier - before you start your shredding party, make a simple spreadsheet listing what you're keeping vs. discarding and why. It sounds tedious but it's actually really helpful if you ever need to reference what you did later. Also, if you're married filing jointly, the same rules apply to your joint returns. Pro tip: Start with your oldest returns first and work forward. That way if you get tired halfway through (which you will!), you've at least cleared out the stuff that's definitely safe to toss. I found 2012-2015 paperwork that I could confidently shred, and it was SO satisfying. Just make sure you're 100% certain about the dates - when in doubt, keep it another year.