I think there's some confusion here. Just because someone lives with you and you're their caregiver DOESNT automatically make the income tax-exempt! My wife is a caregiver for her father and we had to pay taxes on all of it. The exemption depends on who's making the payments and under what program. Some state programs qualify and others don't. You need to check if your specific program is covered under IRS Notice 2014-7, which is what established this exemption.

I'm dealing with a similar situation caring for my disabled brother, and after doing a lot of research, I can confirm that California's IHSS program generally DOES qualify for the difficulty of care exemption under IRS Notice 2014-7. The key requirements are: 1) The care recipient must live in your home (which your mother-in-law does), 2) The payments must come from a state Medicaid waiver program (IHSS qualifies), and 3) You must be providing care for someone who would otherwise need institutional care. Since your fiancé is getting backpay from September, make sure to report the income in the tax year you actually receive it, not when it was earned. So if you're getting the backpay in 2024, it would go on your 2024 return as exempt income. One thing to watch out for - if your fiancé receives a 1099 form for these payments, you'll still need to report the income on your tax return, but then exclude it as exempt difficulty of care payments. Don't just ignore the 1099 or the IRS might think you forgot to report income. I'd recommend keeping all documentation from IHSS showing it's a Medicaid waiver program, just in case you ever need to prove the exemption to the IRS.

Has anyone compared TurboTax to other tax software? This is my first year with similar circumstances (marriage + mortgage) and I'm trying to decide between TurboTax, H&R Block, and FreeTaxUSA.

I've been using TurboTax for about 8 years now, including through some major life changes. That $7,800 refund (after you corrected the withholding error) actually sounds pretty reasonable for your situation. Here's what likely contributed to your larger refund: First-time homebuyer mortgage interest deduction can be substantial, especially if you bought later in the year when most of your payments were interest rather than principal. The child tax credit is $2,000, and if you paid for childcare, that's potentially another $2,100 credit. Plus, changing from single to married filing jointly often results in tax savings depending on your income levels. One thing I'd suggest - before you file, print out a copy of your return and review the "Tax Summary" page that shows exactly which credits and deductions you're claiming. This gives you a clear breakdown of where your refund is coming from. If anything looks off or unfamiliar, that's your cue to double-check those sections. TurboTax is generally reliable for situations like yours, but human error in data entry is always the biggest risk. The fact that you caught and corrected that withholding mistake shows you're being appropriately careful. Trust but verify!

16 Has anyone actually calculated what the tax might be for the OP? If you bought at around $15K and sold at $27K, that's a $12K gain. Half of that ($6K) is taxable and gets added to your income. If you're in Ontario and make around $60K otherwise, that $6K would be taxed at roughly 30%, so you'd owe about $1,800 in additional tax. Of course, this varies by province and income level.

Just want to add something that might help - make sure you keep all your documentation! You'll need your original purchase statements from Starbucks showing when you bought the shares and at what prices. Also keep the sale confirmation showing the $27K proceeds. The CRA might ask for these documents if they review your return, and having everything organized will make filing much easier. If you've lost any paperwork, contact Starbucks HR or whoever manages the employee stock plan - they should be able to provide statements showing your purchase history. Also, depending on how long you held the shares, you might want to double-check that this qualifies as a capital gain and not employment income. Generally employee stock purchases are treated as capital gains when sold, but there can be exceptions depending on the specific plan structure.

I'm a little confused about something - did you cash out the policy or surrender it completely? There's a difference, and it matters for taxes. Did you terminate the policy entirely or just withdraw some of the cash value while keeping the policy active?

Your agent is definitely using a sales tactic. The "half will be taxed" claim is completely misleading. Here's the reality: You're only taxed on the amount that exceeds what you paid in premiums (your basis). Since you've been paying $75/month since 2019, that's about $4,500 in premiums over 5 years. If your cash value is $4,000, you actually have NO taxable gain - you might even have a small loss. The agent's claim about needing to "transfer" the money to avoid taxes is bogus. There's no special tax shelter for reinvesting life insurance proceeds with the same company or any other company. Tax liability is determined by your gain/loss calculation, not where you put the money afterward. I'd suggest getting your exact premium payment history from Allstate before making any decisions. You might be pleasantly surprised to find you owe little to no tax on this distribution. Don't let pushy sales tactics rush you into investment products you don't need.

I think there's some confusion happening between what your CPA is saying and what you're reading online. Here's the deal: Box 1 on 1098-T only shows amounts billed for tuition and fees. Box 5 shows scholarships/grants. If Box 5 > Box 1, the difference is potentially taxable, BUT... The key word is "potentially." If you used that excess scholarship money for other qualified education expenses (required books, supplies, etc.) that aren't reported in Box 1, then that portion isn't taxable. Your CPA is right that they have to work with what's reported to the IRS on the 1098-T, but they're wrong if they're saying you can't reduce your taxable scholarship amount by accounting for additional qualified expenses not shown on the form.

I'm literally dealing with the same thing right now. The financial aid office at my university explained that they only report tuition and official fees in Box 1, but qualified expenses definitely include required textbooks, supplies, and equipment for your courses. IRS Publication 970 is super clear about this. The only catch is you need to keep good records/receipts of those expenses in case you get audited. Is your CPA just not aware that you can include these other expenses, or are they refusing to do it even after you explained?