What happened with the audit? Did you have to pay penalties or just return the tax benefit?

I don't think he's filed taxes the last couple years since he hasn't had income. But that's a good point, I should probably ask him to be sure before I file.

This is super important! Both of you can't claim him. I had this happen with my niece and it delayed my refund by 5 months while the IRS sorted it out. Make sure you have that conversation before either of you file.

Thank you for this information! I found the section in H&R Block you mentioned and it did ask for the advanced payment amount. Once I entered the total from my bank statements (around $1,800), it adjusted my refund calculation and everything made more sense. It does actually do the Form 8812 automatically. I also realized I was comparing to years when my child was younger and I qualified for additional credits. Getting half the child tax credit in advance definitely explains the difference in my refund amount.

I used H&R Block and it seemed to handle it fine. Make sure you're entering the EXACT amount of advance payments you received. If you put in even a slightly wrong number it can mess up the calculations. I had to go through my bank statements and add up all the deposits to get it right.

Thanks for the suggestion. I double-checked my bank statements and realized I was off by about $300 in what I thought I received. After correcting the amount, both software packages gave me the same result. You're right that even small differences can affect the calculation.

Thank you so much! This is exactly what I was looking for. I had no idea to look for the Revenue Procedure documents - no wonder I couldn't find it. Really appreciate you providing the direct link too. Do they publish these Revenue Procedures every year around the same time? I'd like to bookmark this for future reference.

Yes, they publish them annually, typically in late October or early November for the upcoming tax year. They're always titled "Revenue Procedure [YEAR]-XX" where the year is the current year and XX is the specific number assigned to that procedure. For example, the 2025 tax brackets (for taxes filed in 2026) will likely be published as "Revenue Procedure 2024-XX" around October/November 2024. The easiest way to find them is to search the IRS website for "Revenue Procedure inflation adjustments" and filter by the most recent year.

That's a clever workaround! Never thought of using the Withholding Estimator for that purpose. I've been just using TurboTax's published tables and assuming they're correct since they have to be for their software to work properly.

That's an excellent point about possibly getting outdated advice. She mentioned getting this information from "her tax guy" who I suspect might be someone she's been using for decades. Where can I find that IRS publication online to show her? And is there a specific section that directly addresses this gift vs income deduction issue?

You can find Publication 559 directly on the IRS website (irs.gov), but the publication that most directly addresses gift taxes is actually Publication 950 "Introduction to Estate and Gift Taxes." Look specifically at the section titled "Gift Tax" which clearly explains that gifts aren't income tax deductible. Another helpful resource is the IRS's FAQ page on gift taxes which explicitly states that gifts to individuals don't qualify as income tax deductions. Showing her these official sources should help, especially if her tax preparer is giving outdated or incorrect advice. If she's been doing this for years, she might want to consult with a different tax professional to see if amended returns are necessary.

Did your aunt have to file amended returns for all those years or did the IRS just assess the additional tax? I'm worried about my parents who might have been doing something similar.

I've definitely considered waiting until I turn 24, but that's still about 11 months away. Starting school is pretty time-sensitive for me since there's a specific program I want to get into that only accepts students in the fall semester. If I wait until I'm 24, I'd basically be delaying my education (and future career) by a full year. As for the marriage thing - we were already planning to get married eventually, this would just change the timing. Definitely wouldn't make that decision ONLY for financial reasons, but it seems like it might be beneficial on multiple fronts.

That makes sense if the program only starts once a year. Just wanted to make sure you'd considered that option since so many people don't realize the age 24 cutoff can make such a big difference. If you were already planning to get married anyway, then the timing adjustment might be worthwhile. Just make sure you're both on the same page about doing it sooner than originally planned. Good luck with school and congrats on the home purchase!

Also worth mentioning that if you have unusual circumstances, financial aid offices can sometimes do a "dependency override." It's rare, but if you can document unusual family situations, it's worth asking. Parents refusing to provide info usually doesn't qualify though.

I looked through all those independence qualifiers already and unfortunately don't meet any of them. No kids, not a veteran, wasn't in foster care, not emancipated, and don't have dependent parents I'm supporting. I also asked about the dependency override at the financial aid office, but they said they only do those in extreme circumstances like documented abandonment or abuse. My situation with my parents is fine - we just don't have a financial relationship anymore since I support myself.