Has anyone run into this problem where they filed correctly but the IRS sided with the incorrect parent? My mom claimed me when I was 22, working full-time and living with roommates. I filed claiming myself and got a letter saying my return was rejected because someone else claimed me.

This is a really common situation that many young adults face when transitioning to financial independence. Based on your description, your mom should not be claiming you as a dependent this year. The key tests for dependency are pretty clear-cut: - Age test: You're 23 (almost 24), so you'd need to be a full-time student to qualify under the age requirement - Residency test: You live with your dad, not your mom - Support test: You support yourself financially through your full-time job The fact that you were previously on her health insurance doesn't matter now that you have your own coverage through work. Even when you were on her plan, that alone wouldn't have qualified you as her dependent if you failed the other tests. You should absolutely file your own taxes and claim yourself. Don't let her pressure you into filing incorrectly again. If she's already filed claiming you, the IRS will flag the discrepancy when you file your return. They'll send both of you letters asking for documentation to prove who can legitimately claim the exemption. Keep records of your employment, where you live, and how you support yourself - you'll need this if the IRS asks for proof. This situation might be uncomfortable with your mom, but filing correctly is important for your financial future.

Can someone explain if there's any difference in how Form 2555 should be filled out using TurboTax vs. H&R Block? I've been using TurboTax but it seems to be giving me weird results for my Housing Exclusion when I enter my Singapore housing expenses. I'm wondering if H&R Block handles Form 2555 better?

I've been through a similar situation with Form 2555 while working in South Korea, and I can confirm that TurboTax's interface for foreign income exclusions can be frustrating. Based on your circumstances, here are a few additional considerations: Since you left Japan on December 4th and your assignment was confirmed indefinite on October 18th, you're correct to only include the post-October 18th amounts for taxable fringe benefits. However, double-check that your 297 days calculation is accurate - make sure you're counting complete 24-hour periods outside the US, not partial days. For Line 21c (the rental car), if the vehicle was available for both business and personal use, you should include the full amount after October 18th ($1,700) as taxable income. The IRS generally treats employer-provided vehicles as taxable fringe benefits when the assignment exceeds one year. One thing I'd recommend: consider filing Form 2555 by paper rather than through TurboTax if the software keeps giving you strange results. The IRS processors are quite familiar with these forms, and sometimes the manual approach is more straightforward than fighting with software that doesn't handle complex expat situations well. Also, make sure you have documentation from your employer about the exact date your assignment status changed to indefinite. This will be crucial if the IRS has questions about your fringe benefit calculations.

Has anyone used TurboTax to handle the reporting for this kind of transaction? I'm dealing with this exact situation but not sure if regular tax software can handle it properly or if I need to hire a CPA.

I'd strongly recommend getting professional help for this type of transaction. While the strategy can work, there are several critical considerations that need to be handled correctly: 1. **Business Purpose Documentation**: The IRS will scrutinize whether your S-Corp has legitimate business purposes beyond just holding your former residence. You'll need to document these purposes clearly. 2. **Fair Market Value**: You must sell at true FMV - get a professional appraisal. The IRS can challenge related-party transactions if the price seems artificial. 3. **Corporate Formalities**: Your S-Corp needs to operate as a real business entity - separate bank accounts, proper meetings/resolutions, market-rate rent if you continue living there, etc. 4. **Mortgage Complications**: As others mentioned, most residential mortgages have due-on-sale clauses. You'll likely need commercial financing for the S-Corp. 5. **State-Specific Issues**: Property tax reassessment, transfer taxes, and state-level reporting requirements vary significantly by location. The potential benefits can be substantial if you have significant appreciation, but the compliance requirements are complex. A qualified CPA experienced with real estate transactions and S-Corp structures is essential - don't try to navigate this alone with tax software.

Your congressman's office can help! Mine got involved and suddenly IRS started moving on my case real quick

I went through something similar last year. After 6 months of getting nowhere with regular customer service, I filed a complaint with the Treasury Inspector General for Tax Administration (TIGTA). You can do it online at treasury.gov/tigta. They actually investigate IRS processing delays and can force action on stuck cases. Also consider sending a certified letter to the IRS office that handles your region - sometimes written complaints get more attention than phone calls. Keep pushing and don't give up!

Remember that LLC registration and tax filing are two different things! I kept my Wyoming LLC registration even after moving to Oregon because Wyoming has better asset protection laws. But I still have to file and pay Oregon taxes as that's where I physically operate the business. You might want to consider maintaining your LLC registration in whichever state has more favorable business laws while still complying with tax filing requirements based on where you actually operate and have clients. Texas has some good liability protections for LLCs that Colorado doesn't.

Great discussion here! As someone who went through a similar LLC relocation from Nevada to Washington state, I wanted to add a few practical tips that helped me navigate this process. First, regarding the $78k income split - document EXACTLY when you moved and what income was earned where. The IRS and state tax agencies love clear documentation. I created a simple spreadsheet tracking income by client, date earned, and location where I performed the work. Second, don't overlook estimated tax payments! If you were making quarterly payments to Colorado and now need to make them elsewhere, you'll want to adjust your payment schedule mid-year to avoid penalties. Third, consider consulting with a tax professional who specializes in multi-state businesses before making any final decisions about dissolving your Colorado LLC registration. Sometimes maintaining registration in both states can be beneficial depending on your specific business structure and future plans. The tools mentioned above (taxr.ai and claimyr.com) sound helpful, but also make sure you're working with someone who understands the nuances of your specific industry and client relationships. State tax laws can be surprisingly specific about what constitutes "doing business" in a state. Good luck with your filings!