Has anyone actually been audited for messing up the foreign tax credit calculations? I'm wondering if I should just take the simplified foreign tax credit since my foreign taxes are just under $600. Seems way easier than going through all these calculations with percentages and filling out Form 1116.

I went through this exact same situation last year with multiple mutual funds and had to piece together all the foreign source income percentages. One thing that really helped me was creating a simple spreadsheet to track everything. I made columns for: Fund Name, Total Dividends (from 1099-DIV), Foreign Source %, and Calculated Foreign Income. This made it much easier to double-check my math and keep everything organized when filling out Form 1116. Also, don't forget to look for any foreign taxes that were actually withheld - these should show up on your 1099-DIV as well. You'll need both the foreign income amount AND the foreign taxes paid to complete the foreign tax credit calculation properly. For your domestic funds, even if the foreign percentage seems small (like 2-5%), it's still worth including since every bit helps with the credit calculation.

Has anyone compared how different tax software handles this ACA premium deduction for self-employed people? I've been using TurboTax for years but I'm wondering if something like FreeTaxUSA or TaxAct might be better for this specific situation.

Just wanted to add another perspective here - I'm a CPA who works with a lot of self-employed clients in this exact situation. The confusion around ACA premium deductions is incredibly common, and you're definitely not alone in finding the IRS language confusing. For sole proprietors filing Schedule C (which includes independent contractors like yourself), your ACA marketplace premiums ARE deductible as long as you meet the basic requirements: the policy covers you (and potentially your family), you're not eligible for employer-sponsored coverage, and your business shows a net profit at least equal to the premium amount you're deducting. The "established under your business" language that's tripping you up is really aimed at other business structures. For sole props, having the policy in your personal name absolutely counts. One thing I always tell my clients: keep excellent records of your premium payments and make sure you understand how any premium tax credits affect your deduction amount. And if you're ever unsure about a significant deduction like this ($8,500 is substantial!), it's worth consulting with a tax professional for your specific situation. The peace of mind is usually worth the cost.

I'm in a very similar situation with multiple K1s from various partnership investments, and I've been watching this discussion with great interest. The combination approach that several people have mentioned - using taxr.ai for document extraction paired with professional software like Drake Tax - really resonates with me. I actually tried FreeTaxUSA last year thinking it might handle K1s better than TurboTax, but ran into similar freezing issues when I got to the more complex partnership details. It's frustrating because these aren't even that unusual anymore - lots of people have K1s from REITs, energy partnerships, and private equity. One thing I haven't seen mentioned yet is TaxSlayer Pro. A colleague recommended it as a middle ground between consumer and full professional software. Has anyone here tried it for multiple K1s? The price point seems reasonable at around $150, though I'm wondering if it's robust enough for the more complex partnership reporting. @Melissa, I'm really curious what you end up deciding and how it works out. The deadline pressure is real, but it sounds like you've gotten some solid options to explore. The Drake Tax demo approach seems like a smart way to test the waters without committing to the full price upfront.

I've been following this discussion closely as someone who's dealt with similar K1 nightmares for years. What strikes me about all these suggestions is how we're essentially having to piece together solutions because the tax software industry hasn't caught up with how common complex investments have become. I want to add one more consideration that I haven't seen mentioned: timing and deadline pressure. While Drake Tax and other professional software options sound excellent for next year's planning, if you're already stressed about the current deadline, you might want to consider a hybrid approach for this year. For immediate relief, I'd suggest trying the taxr.ai document extraction first - it could solve your data entry headaches quickly and let you import clean data into whatever filing software you choose, even if it's just a more stable consumer option like FreeTaxUSA or H&R Block Premium for this year's filing. Then use the extension period (if needed) to properly evaluate and learn the professional software options for next year. The IRS automatic extension gives you until October 15th to file, as long as you estimate and pay any taxes owed by the April deadline. This way you're not learning entirely new software under extreme time pressure while also trying to handle complex K1 reporting. Sometimes the best solution is the one that gets you through the immediate crisis while setting you up for better long-term success.

Don't forget to check your state's requirements too! Federal and state deadlines/processes for deceased taxpayers aren't always the same. My husband passed in 2022 and while the IRS accepted my extension with just "DECEASED" written on it, our state required me to include a copy of the death certificate with the extension request.

Just want to add one more practical tip that helped me when I went through this with my father's estate - keep detailed records of everything you do during this process. I created a simple folder with copies of the extension form, any correspondence with the IRS, and notes about what the tax professional advised. This documentation became really valuable later when we had questions about timing and what steps we'd already completed. The IRS can sometimes take a while to process extensions for deceased taxpayers, and having your own paper trail helps if there are any follow-up questions. Also, when you do meet with your tax professional, bring all the financial documents you've gathered so far. Even though you're filing the extension first, they can give you a more accurate estimate of what to expect and potentially catch any income sources you might have missed in your initial review.

What happens if both people try to claim the mortgage interest? My gf and I split the mortgage payments (she's on the loan, I'm not), and her 1098 obviously shows the full interest amount. If I try to claim my portion as an "equitable owner" and she claims her portion, will that trigger problems?

I've been following this thread closely since I'm in a very similar situation. One thing I want to add that hasn't been mentioned much is the importance of timing when creating your written agreement. While you don't need to backdate anything, I'd strongly recommend creating that ownership agreement ASAP before you file your taxes. The IRS looks favorably on contemporaneous documentation - meaning paperwork that exists at the time the situation is happening, not created after the fact when you're trying to justify a tax position. Also, make sure your agreement is specific about percentages. Don't just say "in exchange for mortgage payments, I have an ownership interest." Be clear: "In exchange for paying 100% of the mortgage payments, I am entitled to X% ownership interest in the property's equity." This specificity will help a lot if you ever get questioned. One last tip - consider having your girlfriend explicitly state on her tax return that she's NOT claiming the mortgage interest deduction because someone else (you) is claiming it as an equitable owner. This coordination between your returns shows the IRS you're not trying to hide anything.