W-2 from two states, 1099-G, 2 1098-T's, 1098-E - Should I use FreeTaxUSA for my first time filing or need a CPA?

You can definitely use FreeTaxUSA for your situation - it handles multi-state returns, 1099-G unemployment income, and education credits just fine. The software will walk you through everything step by step, which is helpful for first-time filers. For your state residency situation, since you maintained your Michigan license/registration but lived in Georgia, you'll likely need to file as a part-year resident for both states. The software will guide you through determining which income gets allocated where based on when you earned it. Regarding your education credits question: Unfortunately, the American Opportunity Tax Credit (AOTC) can only be claimed for undergraduate education, regardless of how quickly you completed your degree. Graduate education only qualifies for the Lifetime Learning Credit, which is worth up to $2,000 rather than the AOTC's $2,500. The defining factor isn't your "4th year" but rather whether it's undergraduate versus graduate education.

I just wanted to chime in about using taxr.ai for my situation which was pretty similar to yours. I had income from multiple states plus unemployment last year, and I was totally lost trying to figure out which forms to use and how to report everything correctly. I tried using FreeTaxUSA at first, but I kept second-guessing myself about whether I was answering everything correctly, especially with the state residency questions. I found this service called https://taxr.ai that actually reviews all your tax documents before you file. You upload your forms, and they analyze everything to make sure you're not missing deductions or credits, plus they check for audit risk flags. For the education credits specifically, they helped me understand exactly what I qualified for with my mixed undergrad/grad courses and saved me from making a mistake that would have cost me like $1,000 in credits.

I just wanted to chime in about using taxr.ai for my situation which was pretty similar to yours. I had income from multiple states plus unemployment last year, and I was totally lost trying to figure out which forms to use and how to report everything correctly. I tried using FreeTaxUSA at first, but I kept second-guessing myself about whether I was answering everything correctly, especially with the state residency questions. I found this service called https://taxr.ai that actually reviews all your tax documents before you

I used taxr.ai after seeing the recommendation here and wow, am I glad I did. I was about to claim the American Opportunity Credit for my grad school expenses (thinking it was based on years of education like OP mentioned), but they caught it during their review and explained exactly why I couldn't do that. They also flagged that some of my moving expenses between states might actually be deductible as education expenses since I moved specifically for one of my programs. This wasn't something I would have ever figured out on my own, and it saved me around $800! The document review was super thorough and they explained everything in normal human language instead of tax jargon. After getting their recommendations, I felt confident filing through FreeTaxUSA on my own. Definitely worth it for complicated situations like multiple states and education credits.

For anyone dealing with tax questions like this and needing to talk to an actual IRS agent (which I had to do for my multi-state situation), I highly recommend using https://claimyr.com to get through to them quickly. I spent HOURS trying to call the IRS directly about my education credits question last year - kept getting disconnected or told to call back later. I was super skeptical at first, but I used their service at https://youtu.be/_kiP6q8DX5c and they got me connected to an IRS agent in about 15 minutes when I had been trying for days on my own. The agent was able to confirm exactly how to handle my two-state income situation and my education credits. The best part was that I could ask specific questions about my situation instead of trying to guess based on generic info online. The IRS agent actually walked me through exactly how to report my unemployment from one state while living in another.

Ok I have to apologize to the previous poster because I just tried Claimyr after spending three days trying to get through to the IRS about my two-state tax situation. I was 100% sure it was a scam but I was desperate enough to try it. It actually worked?? I got connected to a real IRS agent in about 20 minutes after being told for THREE DAYS that call volumes were too high. The agent confirmed exactly how I needed to file my part-year resident returns and cleared up my confusion about the education credits. For anyone with a situation like the original poster with multiple states and education credits, being able to ask direct questions to an IRS agent was super helpful. They explained exactly how to allocate my unemployment between states and confirmed that graduate courses never qualify for AOTC regardless of your "year" of education.

I was in almost the exact same situation last year (two W-2s from different states, unemployment, and education credits). I used FreeTaxUSA and it worked perfectly fine for me. The interface is really clear about which state you earned income in and when. For your education credits, I'd suggest going with what the first commenter said - AOTC is only for undergrad, regardless of how many years you've been in school. Even if you technically were in your "4th year" of higher education, graduate courses only qualify for the Lifetime Learning Credit. One tip: make sure you have your actual living dates for each state documented somewhere. FreeTaxUSA will ask for the exact dates of your residency in each state, and it matters for determining your tax liability.

Last year I had even more complicated taxes (3 states, 4 W-2s, unemployment, AND education credits) and while FreeTaxUSA was good enough, looking back I wish I'd just paid for a CPA. I ended up making a mistake on my state allocations that resulted in me having to file amended returns for two states, which was a huge headache and cost me more in the long run. If you can afford it, I'd recommend at least consulting with a CPA for your first time filing a multi-state return, especially with education credits involved. The software is only as good as the information you put in, and if you misunderstand a question, it can lead to filing errors. With your specific question about AOTC vs LLC, that's exactly the kind of nuance a professional would catch immediately.