Has anyone used TurboTax for this kind of situation? Their multi-state option seems expensive but wondering if it's worth it or if it even handles this kind of situation properly.

I went through almost the exact same situation last year! My wife and I were in different states (she was in Oregon, I was in Texas) for about 10 months due to work. Here's what we learned: You're absolutely right that you can file jointly for federal and separately for each state. Since California is a community property state, you'll likely need to report half of your combined income ($85k) on your CA return, even though your husband doesn't work there. Colorado isn't a community property state, so your husband will mainly report his Colorado income. For the mortgage situation - since the house is in Colorado and you're both on it, the mortgage interest deduction will generally go on the Colorado return. However, if you're itemizing on your federal joint return, make sure you're coordinating this properly between states. One thing that caught us off guard was California's disability insurance (SDI) tax - make sure you understand how that applies to your portion of the community income. Also, don't forget to look into any credits for taxes paid to other states to avoid double taxation. Given the complexity with community property rules and your rental situation, it might be worth consulting a tax professional who specializes in multi-state returns, at least for this first year. The peace of mind was worth it for us!

Thanks for this heads up! I was completely unaware of the Credit Karma/Intuit situation and almost got stuck paying for TurboTax. I've been using Credit Karma for taxes for the past few years and was shocked when they redirected me to a paid service. Just successfully filed through Cash App Taxes and you're absolutely right - it's the exact same interface I remember from Credit Karma. All my previous year information was there, and it walked me through everything step by step. Filed federal and state completely free, even with my rental property income and deductions. It's frustrating that this change isn't more widely publicized. I only found out about Cash App Taxes through your post after spending an hour confused about why Credit Karma was suddenly charging me. The IRS Free File website should really be updated to reflect these changes more clearly.

This is incredibly helpful information! I had no idea about the Cash App Taxes option and almost fell into the TurboTax trap myself. I've been a Credit Karma user for years and was completely blindsided when they started pushing me toward paid services. I'm particularly interested in the fact that previous Credit Karma data transfers over. Does this include things like prior year AGI that's needed for identity verification? I always worry about having to dig up old tax returns when switching services. Also, for anyone considering this - I'd recommend double-checking that Cash App Taxes supports all the forms you need before you start. While it handles most situations, some of the more specialized forms (like foreign tax credits or certain business forms) might still require paid software. Better to know upfront than get halfway through filing! Thanks again for sharing this - you probably saved a lot of people from unnecessary fees.

Does anyone know how this works if your spouse is also on your marketplace plan? I'm self-employed but my wife works part-time and doesn't get insurance through her job. We get a premium tax credit but I pay for the family plan out-of-pocket portion.

This is such a relief to read everyone's responses! I've been in the exact same boat as the original poster - 1099 contractor paying out-of-pocket premiums after marketplace tax credits and totally confused about what I could deduct. What really helped me was keeping detailed records of my actual premium payments vs. what the tax credit covered. I use a simple spreadsheet to track my monthly out-of-pocket costs ($185/month in my case) so I have clear documentation for tax time. One thing I'd add for anyone else dealing with this - if you're using tax software, make sure it's asking the right questions about marketplace insurance and premium tax credits. I almost made the mistake of entering my full premium amount instead of just the portion I actually paid. The software should automatically coordinate between the self-employed health insurance deduction and Form 8962, but it's worth double-checking that the numbers make sense. Thanks everyone for sharing your experiences - it's so much clearer now!

Please keep in mind that even if you don't qualify for a car deduction, you might still get tax benefits from the sales tax you paid on the purchase! If you itemize deductions on Schedule A (instead of taking the standard deduction), you can include the sales tax paid on major purchases like vehicles. There's a sales tax deduction calculator on the IRS website that can help you figure out if this would benefit you. With a $13,500 down payment, I'm guessing the total car price was significant enough that the sales tax might make itemizing worthwhile.

Just wanted to chime in as someone who went through a similar situation last year. The advice here about car downpayments not being deductible for personal use is spot on - I learned this the hard way after spending hours trying to figure out how to claim mine! One thing that might help with your ITIN amendment situation: when you mail Form 1040-X, make sure you write "ITIN RENEWAL" clearly at the top of the form. This helps the IRS processing center route it to the right department faster. Also, send it certified mail so you have proof of delivery - amendments can get lost in the mail and you'll want to be able to track it. The 16-20 week processing time mentioned earlier is unfortunately accurate. I'd recommend checking the IRS "Where's My Amended Return" tool online after about 3 weeks to make sure they received it. Good luck with your first year doing taxes yourselves - it gets easier once you understand the basics!

Has anyone actually looked at the IRS website about this? They specifically say on the AOTC page: "expenses for books, supplies and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution." Since your school REQUIRES a computer and internet for your online program, they should absolutely qualify! The key is that they're REQUIRED, not just helpful or convenient.

Great question! Based on what you've shared, you should absolutely be able to claim both your laptop and internet expenses for AOTC. Your school's explicit requirements make this a pretty clear case. A few key points for your situation: **Computer & Internet:** Since Central Texas Online specifically states students "need access to a computer 4-5 times per week" and requires a "high-speed connection," these aren't personal expenses - they're required educational equipment. The fact that they list minimum technical requirements on their website is perfect documentation. **Scholarship allocation:** You're smart to think about this! Since your scholarship ($3,250) is less than your tuition payments ($3,400), you only have $150 of qualified tuition expenses. But this actually works in your favor - you can claim all $2,350 of your other educational expenses (laptop + internet + books) for AOTC since the scholarship didn't cover them. **Documentation to keep:** - Screenshots of your school's computer/internet requirements page - Receipt for the laptop showing January 2023 purchase date - Internet bills for 2023 - Your course enrollment showing all online classes **One consideration:** For the internet, you might want to calculate what portion was used for education vs. personal use if you want to be conservative, though since you were a full-time student taking only online classes, a strong argument exists for claiming the full amount. Your total qualified expenses would be $2,500 ($150 tuition + $2,350 other expenses), which puts you right at the maximum for full AOTC benefit. Definitely claim these expenses!