What exactly counts as MAGI for the ACA premium tax credit? Is it just the AGI from the tax return or are there adjustments? I had some student loan interest and moving expenses last year if that matters.

For ACA premium tax credit purposes, MAGI is your AGI plus certain additions: non-taxable Social Security benefits, tax-exempt interest, and foreign earned income. Student loan interest deductions don't affect your MAGI calculation since they're already accounted for in your AGI. Moving expenses generally don't factor into the MAGI calculation either, as long as they're legitimate deductions on your tax return. The key is focusing on which months you were legally considered a dependent - that's what determines whether your income counts toward your mom's household income for premium tax credit purposes.

I used TurboTax Premier and it handled my similar situation pretty well. It asks month-by-month questions about household composition and walks you through the premium tax credit calculations. Just make sure you have your 1095-A form handy and know which months your status changed.

Do you know if this same process works for 1099 forms too? My side gig hasn't sent mine yet and keeps saying "it's coming" but I'm getting worried.

Yes, a similar process works for 1099 forms, but with a few differences. The deadline is still January 31st for them to provide it to you. If you don't receive your 1099 by February 15th, you should first contact the payer directly and request it. Unlike W-2s, you don't necessarily need to contact the IRS immediately for missing 1099s. You can actually file your return reporting all income accurately even without the form (using your own records of payments received). However, if you're missing information about how much was paid to you, then you should call the IRS at the same number for assistance.

This happened to me last year and I just went to pick it up because I didn't want the hassle. Is there any way to report them anonymously? I don't want to cause drama but they shouldn't be able to keep doing this to people.

This is really important! I got hit with a surprise $400 tax bill my first year selling online because I didn't know about self-employment tax. Even small businesses have to pay it.

Doesn't filing an amended return increase your chances of getting audited though? I've always heard you should avoid amendments if possible.

That's actually a common misconception. Filing an amended return doesn't automatically increase your audit risk. The IRS understands that people need to make corrections or additions to their returns for legitimate reasons. What increases audit risk is when the amendment drastically changes your tax situation or seems inconsistent with your original return. In this case, adding education credits later is a common and understandable amendment that wouldn't raise any red flags.

In my experience, state returns are processed independently from federal returns, even if you file them together. Each state has its own processing system. That's why your state return was accepted while federal was rejected.

Isn't doing quarterly payments a lot of extra work though? And how would someone even figure out how much to pay? I feel like making the employer fix their mistake is better than creating more work for the employee.

It's actually not too complicated. The IRS has worksheets on the 1040-ES form that help calculate the proper amount. Basically, you estimate your annual income, determine your expected tax, and divide by four. I agree the employer should fix the issue - that's definitely the right long-term solution. But quarterly payments are a good backup plan if the employer continues to drag their feet. It gives the employee protection from underpayment penalties while they fight the larger battle. Better to be proactive than end up with a huge tax bill and penalties next year.

This happened at my company too! Our entire department had the same issue because someone doing a mass upload checked "exempt" for an entire batch of employees. Took months before anyone noticed because people don't always check their paystubs carefully.