I just went through this exact situation! My advice: have your kids file their own taxes BUT check the box that says "Someone can claim you as a dependent." They'll still get refunds of any withholding that exceeds their tax liability, and you can still claim them if they meet all the tests. My 19yr old made $7200 last year but still qualified as my dependent because: 1) lived with me all year 2) I paid over half support (rent, food, etc was way more than his earnings) 3) he's my kid He filed his own return, got back his withholding, and I still got the dependent tax benefit. Win-win!

Just to clarify what others have said - there's an important distinction between "qualifying child" and "qualifying relative" that determines income limits: **Qualifying Child** (no income limit): - Under 19, OR under 24 if full-time student - Lived with you more than half the year - You provided more than half their support - Didn't file joint return with spouse **Qualifying Relative** (income limit applies): - Can't earn more than $5,050 (2024 tax year) - You provided more than half their support - Not a qualifying child of you or anyone else So your 18-year-old could potentially qualify as a "qualifying child" regardless of income, but your 20-year-old (not in school) would need to pass the "qualifying relative" test, which includes the income limit. The key is the support test - you need to calculate if you truly provided more than 50% of their total support costs (housing, food, clothing, medical, transportation, etc.) versus what they paid for themselves with their earnings.

dont forget about retirement contritbutions too!! when i was doing pslf i figured out i could lower my AGI by putting more in my 401k which lowered my student loan payments. its like getting a discount on retirement saving!!! for us we did married/seperate and the lower income spouse claimed our kid. saved us like $4k a year in studen loan payments and only lost like $1500 in tax benefits

Yes, HSA contributions absolutely work the same way! HSA contributions reduce your AGI just like 401k contributions do, which means they'll lower your income-driven repayment calculations for PSLF. If you're eligible for an HSA (high-deductible health plan), you can contribute up to $4,300 for individual coverage or $8,550 for family coverage in 2024. It's actually a triple tax advantage - deductible going in, tax-free growth, and tax-free withdrawals for qualified medical expenses. With a new baby, you're probably going to have medical expenses anyway, so maximizing HSA contributions could be a really smart move for your situation. You'd lower your student loan payments AND build up a tax-advantaged fund for healthcare costs. The combination of maxing 401k, HSA, and filing separately with the right spouse claiming your child could really optimize your finances during these final PSLF years!

I messed up my rental condo depreciation last year using the town's weird assessment numbers. My accountant caught it before filing and said the 0.4% land allocation I calculated would absolutely trigger an audit. She helped me get the correct numbers from our condo docs (it was actually 16%). One thing nobody mentioned - with condos you're depreciating the interior structure plus your percentage interest in common elements, but NOT the land. That's why the allocation is so important. My accountant said this is one of the most common errors for first-time landlords with condos.

This is exactly the kind of situation where getting professional help upfront saves you headaches later. I made similar mistakes with my first rental property and learned the hard way that municipal assessments are often completely unreliable for depreciation purposes. Your 0.35% land allocation is definitely a red flag. Even for condos, anything under 10% typically raises eyebrows. The IRS expects reasonable allocations, and yours is so far outside normal ranges that it could trigger automatic review. Here's what I'd recommend based on my experience: 1) Check your original purchase documents - sometimes the land/building split is mentioned in the settlement statement or appraisal 2) Contact your condo association for official documentation of the land allocation percentage 3) If neither yields results, use a conservative 15-20% allocation and document your reasoning Remember, you're not just depreciating your unit - you're also depreciating your proportional share of common areas (hallways, lobby, etc.) but excluding the land value. Using $720k as your basis is correct regardless of current value. Better to be slightly conservative with your depreciation than to deal with an audit over unrealistic numbers!

mine cleared after 3 weeks, just keep checking WMR and your transcripts. dont call them unless its been over 21 days they wont tell u anything anyway

Hey! I was in the exact same situation last month - had those same codes on my transcript and was freaking out about when I'd get my refund. The 570 hold cleared after about 3 weeks for me, and I ended up getting a CP05 notice in the mail asking me to verify my identity online. Once I did that, my refund was released within a week. The waiting is honestly the worst part, but try not to stress too much - these codes are super common this filing season and most people get their refunds eventually. Just keep checking your transcript every Friday when they update! 🤞

Another thing to consider - the timing of when you sell might matter for tax purposes. If you've held the Bitcoin for over a year, you'll qualify for long-term capital gains rates, which are typically lower than short-term rates. For 2025, long-term capital gains are taxed at 0%, 15%, or 20% depending on your income bracket, while short-term gains are taxed as ordinary income (potentially much higher). So if some of your brother's Bitcoin investments were made less than a year ago, it might be worth waiting until they cross that one-year threshold before selling.

I'm dealing with a similar situation with my sister's crypto investments, and from what I've learned, you're actually in a pretty good position with that documentation you mentioned having since 2019. One thing that hasn't been mentioned yet - make sure you're calculating the cost basis correctly for each of your brother's purchases. Since he's been making weekly $65 investments, you'll need to track the purchase price of Bitcoin at each transaction date to determine his individual cost basis for each "lot" of Bitcoin purchased. This becomes important because when he sells, you'll need to determine which specific Bitcoin purchases are being sold (FIFO, LIFO, or specific identification method) to calculate the actual capital gains or losses accurately. Also, since you mentioned you're not currently working, be aware that even though the Bitcoin sale will appear on your tax return, the actual tax liability should really be your brother's responsibility. You might want to have a clear agreement with him about covering not just the taxes owed, but also any additional tax preparation costs since this complicates your return significantly. The joint vs. separate filing question is tricky, but as others mentioned, joint filing is almost always more beneficial. The key is making sure your brother understands he needs to reimburse you for the full tax impact on your household.