Do both people have to file at the same time? Like what happens if my mom files first and claims me, but then I file and claim myself?

You don't have to file at the same time, but if your mom claims you as a dependent and then you claim yourself on your own return, it will trigger a red flag in the IRS system. When you e-file and indicate that you can be claimed as a dependent by someone else, the system will check if someone has already claimed you. If there's a conflict (she claimed you and you claimed yourself), typically one or both returns will be rejected, or you might receive a letter from the IRS asking for clarification.

Yeah TurboTax can do this but its kinda annoying. You have to basically complete your whole return, save it, then go back and change the "can someone claim you as a dependent" answer and redo some parts. I did this last year and found I got about $1200 more by not being claimed as a dependent.

Thanks, that's helpful. I already started my return in TurboTax so I'll try doing that comparison before making a decision.

Thanks for this info! I just checked and Australia does have a tax treaty with the US. On my 1042-S form, it shows they withheld 5% - does that sound right for the Australia-US treaty? And would I need to do anything to get money back or is that the correct amount?

That 5% withholding rate sounds correct for Australia-US royalty payments (which is how AdSense income is typically classified). Since they've withheld at the correct treaty rate, you don't need to file anything with the IRS to get money back. Just make sure you claim this US tax paid as a foreign tax credit when you file your Australian taxes so you don't end up paying tax twice on the same income. Your Australian tax software or accountant should have a section where you can enter foreign taxes paid to get credit for them.

This is so true! Mine was incorrectly coded as 50 (corporate distributions) with 30% withholding when it should have been code 12 with 10% under my country's treaty. Took forever to get it fixed, but saved me hundreds.

Thanks for the input! That's definitely something I've been considering. Do you think there's any benefit to at least harvesting some gains to "reset" my cost basis higher in case the crypto keeps appreciating? I'm torn between letting it ride versus locking in some gains tax-free while I can.

That's a good point about resetting your cost basis. If you're confident in the crypto's long-term prospects, selling and rebuying to establish a higher cost basis could definitely help you in the future if prices continue to climb. I'd probably take a middle approach - maybe harvest enough gains to use up a portion of your losses while keeping some losses in reserve for future years. That way you're getting some tax benefit now while also positioning yourself better for future growth. It really comes down to your outlook on where crypto prices are headed and your personal cash needs.

As of the 2025 filing season, wash sale rules still don't apply to cryptocurrency. There have been proposals to change this, but they haven't been implemented yet. This is one of the few tax advantages crypto still has - you can sell at a loss and immediately repurchase to harvest the tax loss without waiting 30 days (which would be required for stocks and securities). Just make sure you're keeping detailed records of all transactions since the IRS is paying more attention to crypto reporting these days.

Thanks for sharing your experience! That's exactly what I was worried about happening. Did you have any way to figure out if the credits were legitimate before you got audited?

Not really, and that was my big mistake. I didn't understand enough about tax law to question what they were doing. The preparer kept using technical tax terms that sounded legitimate, and I was so focused on the big refund that I ignored the warning signs. The best way to check is to ask specifically which credits and deductions they're claiming, then research those yourself or get a second opinion from a legitimate CPA or EA (Enrolled Agent). Any preparer who can't or won't explain exactly what they're doing with your return should be avoided.

This! And make sure they sign the return as the preparer with their PTIN (Preparer Tax Identification Number). If they won't put their name on your return, they're probably doing something illegal.

Do you know if a 2-unit building would even be considered an "association" under those rules? And would choosing 1120-H vs 1041 affect how much we pay in taxes?

Yes, a 2-unit building can still qualify as an association under IRC 528 as long as it meets the other criteria. There's no minimum unit requirement in the tax code for this purpose. The IRS looks at how the entity operates rather than its size. Regarding taxes, Form 1120-H allows the association to exclude income from member dues completely, taxing only "nonexempt function income" like interest earnings or commercial rental income at a flat 30% rate. For small associations with minimal interest income, this often results in zero tax liability or a very small amount. Form 1041 trusts calculate taxes differently, potentially subjecting more income to taxation depending on how the trust is structured. For a simple pass-through arrangement like yours with minimal bank interest, the 1120-H is usually advantageous.

I switched to TurboTax Business for our condo trust and found their interview process much more straightforward. They have specific questions designed for small residential associations that made the whole process less confusing.