Just a heads up - make sure you keep good documentation of everything. Your mom might still try to claim the credit anyway, and if both of you claim it, the IRS will definitely flag both returns. Maybe have a calm conversation with her explaining what you've learned here. If she still insists on trying to claim it, you might want to file your return early so it goes through first. The second person to file claiming the same credit will likely get a letter from the IRS.

I went through almost the exact same situation last year! My dad was convinced he should claim my education credits because he helped pay for some of my expenses, even though I wasn't his dependent anymore. What really helped me was sitting down with him and going through the actual IRS dependency tests together. We used the IRS Interactive Tax Assistant online to determine my status step by step. Once we confirmed I didn't meet the criteria to be claimed as a dependent (mainly because of my income level), it became crystal clear that the education credits belonged to me. The key thing to remember is that it's not about who contributed money - it's purely about dependent status. Since you're working full-time and not a dependent, those credits are legally yours to claim. Your mom can't just decide to take them because she helped with expenses. I'd suggest showing her Publication 970 (like others mentioned) or even using the IRS Interactive Tax Assistant together. Sometimes having that official IRS source makes all the difference in family tax discussions. Good luck!

Has anyone else noticed that this seems to be happening more often lately? I returned something to HomeGoods last week and they tried to keep the tax too. When I questioned it, they suddenly "found a way" to refund the full amount. I think some retailers are trying this as a sneaky profit tactic hoping people don't notice or complain.

This is really concerning if retailers are systematically doing this. I work in tax compliance and can tell you that what BigTech Store told you is absolutely incorrect. Sales tax refunds on returned merchandise are governed by state law, not store policy. When you return an item, the original transaction is essentially being reversed. The store collected that tax as an agent of the state - they don't get to keep it when the underlying sale is canceled. Most states have specific provisions requiring retailers to refund sales tax on returned items, and failure to do so can result in penalties for the retailer. I'd recommend going back with your receipt and asking to speak with a manager. If they refuse, you can file a complaint with your state's department of revenue. They take sales tax compliance seriously and will investigate retailers who aren't following proper refund procedures. The fact that some commenters are seeing this happen more frequently suggests this might be a deliberate policy at some chains, which is even more problematic from a regulatory standpoint.

Has anyone actually been audited over this? I've been deducting my gym membership for years as a 1099 dance instructor and never had a problem. I figure as long as it's not a crazy amount and I'm not claiming other suspicious deductions, the IRS has bigger fish to fry.

Thanks for sharing your experience, Jasmine - that's exactly the kind of real-world outcome people need to hear about. For anyone considering this deduction, it's worth noting that even if you have a legitimate business case, you need to be prepared to defend it with solid documentation if audited. The fact that fitness is required for your job doesn't automatically make gym memberships deductible - the IRS still applies the "personal benefit" test pretty strictly. If you do decide to take this deduction, I'd recommend: 1) Keep a detailed log showing gym usage specifically for work-related fitness (not general health) 2) Document any specific fitness requirements in your referee contracts 3) Consider whether you'd have the membership anyway for personal reasons 4) Maybe consult with a tax professional if the deduction is substantial The potential tax savings might not be worth the audit risk and hassle for everyone, especially if it's a borderline case.

One thing to keep in mind is that you can't actually "choose" which mortgage to claim - if both properties qualify as your primary residence and second home, you're entitled to deduct the interest on both mortgages up to the applicable limits. You can't selectively ignore one to maximize the other. What you CAN do is make sure you're maximizing the deductible portions within the rules. Since your first mortgage ($550k) is grandfathered under the old $1M limit, you can deduct all the interest on that. For your new $1.3M mortgage, you'd be able to deduct interest on $750k of that loan amount. The key is making sure your total itemized deductions (including both mortgage interests, state taxes, charitable donations, etc.) exceed the standard deduction to make itemizing worthwhile. With mortgages totaling $1.85M, you'll likely have substantial interest payments that would justify itemizing.

Just to add one important consideration that hasn't been mentioned yet - make sure you understand the order of payments if you end up with a mortgage over the deduction limit. For your new $1.3M mortgage where only $750k qualifies for deductions, the IRS treats the deductible portion as being paid first throughout the year. So if you pay $91,000 in interest on that 7% mortgage ($1.3M × 7%), you'd be able to deduct interest on the first $750k of principal, which would be about $52,500 ($750k × 7%). The remaining $38,500 in interest payments wouldn't be deductible. Also, double-check that both properties will actually qualify as residences under IRS rules. The second home needs to have basic living accommodations (sleeping, cooking, and toilet facilities) and you need to use it personally for more than 14 days per year or 10% of the days it's rented out, whichever is greater. Since you mentioned using it 3 months per year, you should be fine on that front.

This is such a frustrating discovery! I went through the same thing a few years ago. The $10,000 MAGI limit for MFS Roth contributions is basically designed to be impossible for most working people to meet - it's clearly meant to push couples toward joint filing. One thing that helped me was understanding that this restriction exists because the government views marriage as creating a single economic unit for tax purposes. When you file separately, they're concerned about income shifting strategies and other tax avoidance techniques that could theoretically be used between spouses. The backdoor Roth strategy mentioned by others is definitely worth exploring if you're set on filing separately. You can contribute to a traditional IRA (no income limits for contributions, just deductibility limits) and then convert it to Roth. Just be aware of the pro-rata rule if you have other traditional IRA balances. Also consider that you have until you actually file your return to decide on your filing status - so you can calculate both ways and see which gives you the better overall result when you factor in all the various credits and deductions you'll lose or gain.

The married filing separately Roth IRA restriction is definitely one of the most frustrating aspects of the tax code! I went through this exact situation a couple years ago and felt completely blindsided by the $10,000 MAGI limit. What really helped me understand the "why" behind this rule is that it's part of a broader pattern in tax policy. The government uses the tax code not just to raise revenue, but to incentivize certain behaviors - in this case, they want married couples to file jointly because it simplifies administration and reduces opportunities for tax planning strategies that could shift income between spouses. A few practical suggestions based on my experience: 1. Run the numbers both ways (MFJ vs MFS) using tax software before you decide. Sometimes the Roth IRA limitation is offset by other benefits of filing separately. 2. If you do decide to stick with MFS, the backdoor Roth strategy really does work if you don't have existing traditional IRA balances complicating things. 3. Consider timing - you have until you file your return to choose your status, so you can explore all options. The silver lining is that this forced me to learn way more about retirement account strategies than I ever thought I'd need to know! Sometimes these tax "gotchas" end up making us better informed taxpayers in the long run.