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Thank you so much for your comprehensive response. I really appreciate you taking the time to explain. I don’t think we are able to take the AOTC in 2024 due to the fact that he had a taxable scholarship of about $29k. I have filled out the info, please see below. I also have a related question.  We have claimed our Son (under 24 and a full-time student) as our dependent in our 2024 return.  He received a full scholarship in 2024 that paid for his tuition, fees, room and board, etc.  According to IRS, a taxpayer needs to provide more than half of living expenses/financial support of a qualifying child in order to claim them as a dependent.  My understanding is that taxable scholarships are “unearned income” and as such they do NOT count when determining if your qualifying child can financially support themselves.  As such, is it correct that we claimed him as our dependent on our return and he stated on his return that he is a dependent of someone else? Information: Are you the student or parent.  Parent Is the  student  the parent's dependent.  Yes Box 1 of the 1098-T -$60k box 5 of the 1098-T - $90k Any other scholarships not shown in box 5 - No Does box 5 include any of the 529/ESA plan payments (it should not) – No, 529 was paid to me (parent) directly in 2024 Is any of the Scholarship restricted; i.e. it must be used for tuition – No. The college received various scholarships (merit/finaid/grants) and charged various expenses (tuition, room and board, fees, insurance, etc.) against them.  I don’t believe there are any restrictions. Box 1 of the 1099-Q - $2,400 Box 2 of the 1099-Q - $700 Who’s name and SS# are on the 1099-Q, parent or student (who’s the “recipient”)? - Parent Room & board paid. $20k (NOT in box 1 of Form 1098-T) Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers - $1k (I have already accounted for this in the $29k above) How much taxable income does the student have, from what sources – W-2: $6k; 1099misc: $10k (internship) and his taxable scholarship Are you trying to claim the tuition credit (are you eligible, income not too high)? Income wise we are not high, but TT says we are not eligible for the credit due to his taxable scholarship.  We had partial AOTC in the last couple of years since he had smaller scholarships which were not taxable.  However, in 2024 some of his scholarships are taxable. Is the student an undergrad or grad student? Undergrad Is the student a degree candidate attending school half time or more? Yes

We don't have a date for reprogramming the What-If Worksheet.  Editing the numbers on this form a bit is still better than preparing three separate returns.  If you live in a community property state, some items need to be split 50/50.    @tuckerlogan523 

Are you using the Online web version?    Online is only good for 1 return per account.  But you can use the same email address for 5 accounts.  You can start another return in TurboTax Online by: Logging out if you are in your account Choose what TurboTax Online product you want to use for the second return Create your account screen Set up a new login for the second return Start working on the new return

Enter a SSA-1099, SSA-1099-SM or RRB-1099  under Federal Taxes on the left side or top Wages and Income Then scroll down to Retirement Plans and Social Security Then the second line - Social Security (SSA-1099. RRB-1099) - click the Start or Revisit  button   Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches: Married Filing Jointly: $32,000 Single or head of household: $25,000 Married Filing Separately: 0   Social Security is on line 6a and any taxable amount on 6b. Any withholding will show up on 1040 line 25b.

The tax you owe on April 15 is the prior year's tax used in the calculation I put forward. With no withholding, and a larger than usual income expected in the current year, then divided by 4 it is the first Estimated Tax Payment which is also due on April 15th,

I did not make any income on stocks, bonds, interest, dividends, capital gains or self employment.   We earned our income like we did every year- through our employers and I had a small amount (around $5k) of income that our vendors give me when I sell their product that comes in the form of a spiff.   This was also the case last year.  Our income went up from last year by maybe under $2,000 and we only owed federal $24.  Now it is saying we owe nearly half our combined income!  How is that even possible?  You don't make jointly $140,000 and have to owe $65,000 of it to federal taxes.  Esp when you have 3 kids.  Something is off and I can't figure out what it is.  Not sure if starting over will fix it, but I may do that using a different email address.    

Here's how you can edit the information:   Navigate to Federal > Deductions & Credits > Dependent Care Credit > Add/Edit Answer Yes to the question "Do you want to review your child and dependent care credit information?" Continue through the questions about parent's work or school You will see "Here's what we have so far" with the child's name and total expenses. ‌Choose Done Next, there is a screen that says "Here's what you spent on care providers" with the name of the daycare.  Choose Edit, the icon with the pencil to the right of the expense. Update as needed

No foreign taxes will be withheld.  The only taxes will be with the US. In plain English. When do I need to report those interests? All in 2025? Only the 12 month CD should be reported in 2025? The 18 month CD should be apportioned (2024 and 2025). Or even the 12 month CD should be apportioned because they overlap two fiscal years?  What is your opinion? @pk  Thank you for your help with this matter

One reason, By increasing your deductions and expenses it will decease your income and you may not be getting as many credits as before like the EIC credit. You can't go by the refund monitor until you have entered everything in. Also after you reduce your income to zero there is no more refund to get back. But even though your taxable income goes down and you owe less income tax on it, you may owe for other things like self employment tax (if you have a Net Profit) or the 10% early withdrawal penalty from 401k or IRA accounts.   Be aware, if you have self employment income you can get in trouble for not reporting all your expenses to qualify for the EIC.

Medical Insurance Premiums are deductible net of any reimbursement for payment from the employer or third party.  Medical and dental expenses that exceed 7.5% of Adjusted Gross Income can be deducted if you itemize your deductions.     Can I deduct medical expenses - and where do I deduct them?