That's a really good point! Her daughter is 6 years old and lived with her the entire year (both in the apartment and at the grandparents' house), so she definitely meets the age and residency tests. And my cousin provided all her support. So we're good on the qualifying dependent part. I was just hung up on the "maintaining a home" test since she only had her own place for part of the year.

Sounds like you're in good shape then! Just remember that when determining if she paid more than half the cost of maintaining the home, you'll be looking at the total costs for those 7 months only, not the whole year. Since she paid all the expenses for that period, she clearly meets the "more than half" test for maintaining a home. One other tip - make sure she keeps good records of her rent payments, utility bills, and other household expenses from those 7 months. If she gets audited, the IRS might ask for proof that she maintained the home.

I used to work for a tax prep company, and this is correct. When the IRS says "paid more than half the cost of keeping up a home for the year," they're referring to the home(s) where the taxpayer and qualifying person lived during the year. If your cousin paid all the costs for the 7 months they lived in the apartment, she meets this test.

We actually did buy our first home in August! But the mortgage interest wasn't that much since we only had it for part of the year. We donated some clothes and household items to Goodwill, but I didn't keep receipts because I didn't think it would matter. No student loans currently. The main change was definitely getting married and my wife losing her job in November. Would the job loss affect our 2024 taxes even though it happened in November? We were thinking that would mostly impact next year's taxes.

Buying a home definitely has tax implications! Even with only a partial year of mortgage interest, that should be a deduction that helps reduce your tax burden. Make sure that's included on your Schedule A if you're itemizing deductions instead of taking the standard deduction. The job loss in November wouldn't have a huge impact on 2024 taxes, but it does affect your overall annual income which could potentially put you in a different tax bracket. More importantly, if your wife received unemployment benefits after the job loss, those are taxable income and could be part of why you're owing taxes if the proper withholding wasn't taken out.

This is a really good point! I'm in Minnesota and got absolutely hammered with the marriage tax penalty. Meanwhile my sister in Texas (no state income tax) actually saved money by getting married.

What if my second form has slightly different info in column B than what I expected? My premium went up mid-year even though I didn't report any income change. Should I call the marketplace to fix this?

It's not uncommon for the SLCSP amount in column B to change slightly throughout the year, even without an income change. The Silver benchmark plans can have small adjustments based on various factors. If the difference is small (less than $20-30 per month), it's probably just a normal adjustment. However, if you see a major jump that doesn't align with any changes in your household, it might be worth calling the Marketplace to verify it's correct. Small differences usually don't warrant the hassle of calling, but significant unexplained changes should be checked before filing.

Check to make sure you entered your annual income correctly. If your actual 2024 income ended up higher than what you estimated when you signed up for coverage, you might have to pay back some of the advance premium tax credit you received. That could explain the lower refund.

Would the original poster and their fiancé be in any trouble here? Since technically they signed the return even with false information on it? I'm always worried about that when mistakes happen.

The taxpayer does have responsibility for reviewing their return before signing, but the IRS recognizes that most people trust their preparers and may not catch sophisticated errors or fraud. The key factor here is intent - the taxpayer had no intention to defraud the government. The fact that they're proactively addressing the issue once discovered works strongly in their favor. The IRS is primarily interested in collecting the correct tax amount and proper penalties, not in punishing taxpayers who were misled by preparers. I've seen many cases where penalties were waived when preparer error was demonstrated. Documenting every communication with the preparer from this point forward will be important to establishing good faith efforts to correct the situation.

Not OP but I've seen this happen with multiple budget prep services. They hire seasonal workers, give them minimal training, and use clunky software. Always worth paying a little more for someone who knows what they're doing and uses professional-grade software like Lacerte or UltraTax.

Are there specific states that are better for homebuyer benefits? I'm actually planning to buy in the next year and could potentially look at properties in either Illinois or Wisconsin since I'm near the border.

Illinois has some decent programs for first-time homebuyers, including their IHDAccess program which can provide tax credits up to $6,000 for qualifying buyers. Wisconsin offers the First-Time Home Buyer Savings Account which allows tax-free savings for a down payment. Just remember these are often programs you need to qualify for and apply to before purchasing your home - they're not automatic tax credits you can claim after the fact. Each state's housing authority website will have the most current information, as these programs change regularly.

Second this! TurboTax kept my refund at $120 until I switched to FreeTaxUSA and ended up with $340 instead. Same exact information entered, but FreeTaxUSA found credits TurboTax somehow missed.