Quick question about this EITC situation - does anyone know if TurboTax handles this correctly? Like if I input that I have 50/50 custody and want to claim EITC for a kid that my ex is claiming as a dependent, will it let me do that or will it give me an error?

I just went through this exact situation last year! Your tax preparer is absolutely right - EITC and dependency claims operate under different rules. I had 50/50 custody with my ex, and I was able to claim EITC for both kids even though we alternated who claimed them as dependents each year. The key thing to remember is that EITC is based on the "qualifying child" test, which looks at things like where the child lived for more than half the year. With true 50/50 custody, either parent could potentially claim EITC if they meet the income requirements. Since your ex makes too much to qualify for EITC anyway, there's no conflict. Your ex's return won't be rejected - the IRS systems don't automatically cross-reference EITC claims with dependency claims in the way you might think. Just make sure you have documentation of your custody arrangement and that all the child's information (SSN, name spelling, etc.) is consistent on both returns. One tip: I found it helpful to give my ex a heads up about the arrangement just to avoid any confusion or concern on their end when they saw different credits being claimed. Good communication goes a long way in co-parenting situations, especially around tax time!

dont forget that the way the 1098-T is filled out can make a huge difference! My school reports amounts BILLED in Box 1 instead of amounts PAID in Box 2, which totally screws up software calculations. Had to manually adjust for spring semester tuition that was billed in December but actually paid in January of the tax year.

This is exactly the situation I went through with my master's degree! You absolutely should amend your return - education credits are way more valuable than people realize because they're dollar-for-dollar reductions in your tax liability, not just deductions. One thing to watch out for: make sure you're only claiming the credit on the amount you actually paid out of pocket. The employer reimbursement portion can't be used for the credit, but the 40% you paid yourself definitely qualifies. Also double-check if your employer reported the tuition assistance as taxable income on your W-2 - if they did, that changes the calculation slightly. The Lifetime Learning Credit is probably your best bet as a grad student (20% of qualified expenses up to $10,000, so max $2,000 credit). You have 3 years to amend, so you're well within the timeframe. Form 1040-X plus Form 8863 should get you sorted!

called MI treasury today and they said theyre aware of the issue but no eta on a fix. atleast their being honest ig

This is exactly what happened to me! Filed with H&R Block on Jan 28th and have been waiting forever for my Michigan refund. Finally called the state last week and they told me a paper check was mailed instead of direct deposit. So frustrating that H&R Block didn't even notify customers about this glitch. Thanks for the heads up OP!

For form 8843 question 12, make sure ur counting CALENDAR years not academic years!!! I messed this up before. If u were here even for like 2 weeks in December 2020 and then Jan-May 2021, that counts as 2 calendar years already even tho it's just one academic year.

This is such a helpful thread! I'm in a similar situation but with a twist - I've been here 3 years on F-1, but I also had a brief research exchange program in my home country that was sponsored by a US university. Does that count toward my US presence even though I was physically outside the US? Also, for anyone still confused about the calendar year vs academic year thing - I learned the hard way that even if you leave the US for winter break, as long as you were present for ANY part of December and then came back in January, that's still 2 separate calendar years for Form 8843 purposes. The IRS instructions are pretty clear that it's about physical presence, not continuous residence. One more tip: keep really good records of ALL your entry/exit dates. I use a simple spreadsheet with arrival and departure stamps from my passport. It's saved me so much time when filling out these forms each year.

Just to add something important - if your in-laws were primarily living on Social Security and VA benefits, there's a good chance they weren't required to file at all. Many people don't realize this. For example, in 2022, a married couple over 65 only needed to file if their gross income exceeded $28,700. Social Security is often not counted in this calculation unless they had other substantial income. VA benefits are generally tax-free. Before you panic about years of unfiled returns, find out if they were even required to file. This could be much simpler than you think!

One thing nobody's mentioned - you should check if the estate itself needs to file a return. Form 1041-ES is for estimated tax payments for estates and trusts. If the estate generated income after your in-laws passed (like interest on accounts, sale of assets, etc.), the estate might need to file its own return separate from your in-laws' personal returns. Usually this only applies if the estate earned more than $600 in income before assets were distributed to heirs. Did the estate have any income-generating assets that weren't immediately distributed?