Just went through this exact situation last year in Oregon (also unmarried couple, both on mortgage). What worked for us was creating a simple spreadsheet tracking each person's contributions to our joint account throughout the year, then using that percentage to split the mortgage interest deduction. Since you mentioned you contribute about 3x what your partner does, you'd probably end up with around 75% of the interest deduction. The IRS Publication 936 specifically addresses this - it says you can deduct mortgage interest you paid during the tax year, regardless of whose name is on the mortgage. Key documentation to keep: monthly bank statements showing deposits from each person, the mortgage payment records from your joint account, and maybe a simple signed agreement between you two stating how you're splitting it based on actual contributions. We kept it simple - just a one-page document saying "Partner A contributed 73% to joint account used for mortgage payments in 2024, therefore claims 73% of mortgage interest deduction per IRS Pub 936." Never had any issues and it allowed the higher earner to itemize while the other took standard deduction, maximizing our combined refund.

This is such a common issue for unmarried couples! I went through something very similar last year. Based on my research and experience, you absolutely can claim the mortgage interest based on what you actually paid rather than just splitting it 50/50 by ownership. Since you're paying most of the mortgage from your joint account and contributing most of the funds, you can claim the corresponding percentage of the $19,800 interest. The IRS cares about who actually paid the interest, not just whose name is on the deed. Here's what I'd recommend: Start tracking your contributions to that joint account if you haven't already. If you can show you contributed, say, 75% of the funds used for mortgage payments, you can claim 75% of the mortgage interest deduction. This would give you about $14,850 in interest to deduct, which should easily put you over the standard deduction threshold for itemizing. Make sure to keep good records - bank statements showing your deposits to the joint account, mortgage payment records, etc. You might also want to create a simple written agreement with your partner documenting the arrangement, just in case. The key is being able to demonstrate your actual financial contribution if the IRS ever asks. Since you're earning 3x more and paying most of the bills, this approach should both be legitimate and give you the better tax outcome you're looking for.

Kinda off-topic but important for your FAFSA issue - have you considered asking your school about a "Dependency Override" for financial aid purposes? Even if your parents claim you on taxes, FAFSA might still consider you independent in special circumstances. I work in a college financial aid office, and we process these for students who have unusual situations with parents. You'd need to document why you can't provide parent info (their refusal to file taxes might qualify). Each school handles this differently, but it's worth asking about. This wouldn't affect your tax situation, just how FAFSA views your dependency status for aid purposes.

As someone who works with tax compliance, I want to emphasize that your parents really need to prioritize getting their back taxes filed ASAP. The longer they wait, the more penalties and interest accumulate - we're talking potentially thousands of dollars in additional costs. For your specific situation, the dependency status change is totally normal and legal. What matters for 2024 is whether you meet the dependency tests for that year - age (under 19 or under 24 if full-time student), residency (living with them more than half the year), and support (they provide more than half). One thing to watch out for: if your parents do claim you as a dependent for 2024, make sure YOU don't also claim your personal exemption when you file. This is a common mistake that triggers IRS matching programs and can delay processing for both returns. Also, document everything about your living situation and support provided. If there's ever a question about the dependency claim, you'll want records showing when you moved back home, what expenses your parents covered, etc. The FAFSA dependency override mentioned by Lucas is definitely worth exploring - that could solve your financial aid issues even if the tax situation stays complicated.

Mine hit this morning! approved 2/5, deposit 2/7 with local credit union

I'm dealing with a similar situation but with federal refunds. Sometimes there can be additional processing delays when there's an adjustment made to your refund - the system might need extra time to verify the changes before releasing funds. Since your refund was "adjusted" (not just approved), that could explain the delay beyond the normal 48-hour window. The fact that you haven't received the explanation letter yet also suggests they might still be processing everything on their end. I'd definitely call tomorrow if nothing shows up - even with high call volume, they should be able to give you a status update on both the deposit and the adjustment letter.

Before you even consider an OIC, have you looked into whether you qualify for Currently Not Collectible status? If your financial situation is really tight, you might qualify for CNC which would pause your payments until your finances improve. It doesn't make the debt go away, but it gives you breathing room without the lengthy OIC process.

I went through the OIC process about 6 months ago with a similar debt amount ($12k from freelance work). Here's what I learned: First, the IRS really does look at your entire financial picture - not just the debt amount. They calculate your "reasonable collection potential" which includes your assets, income, and necessary living expenses. If you can demonstrate genuine financial hardship or that paying the full amount would prevent you from meeting basic living expenses, you have a shot regardless of the debt size. My biggest mistake initially was trying to do it myself. The forms are incredibly detailed and one small error can get your application rejected. I ended up working with a tax professional who helped me properly document my case. We showed that my current income barely covered my necessary expenses and that the monthly payment plan was actually causing me to go deeper into debt with credit cards just to cover basics. The process took about 8 months total, but I ended up settling for about 35% of what I owed. The key was proving that this was truly the most the IRS could reasonably expect to collect from me given my circumstances. One warning though - during the application process, you can't miss any payments if you're currently on a payment plan. They'll reject your OIC if you become delinquent while it's being reviewed.

Has your brother filled out a FAFSA for college? If your mom can't claim him as a dependent due to his investment income, he should file the FAFSA as an independent student, which might actually help him qualify for more financial aid since only his income and assets would be considered, not your mom's. This could potentially offset some of the tax disadvantages of not being able to be claimed as a dependent. Just something to consider for the bigger financial picture.

Based on everything discussed here, it sounds like your mom unfortunately cannot claim your brother as a dependent due to his $19k in investment income exceeding the $4,850 gross income limit for 2024. Since he's over 24, he can't qualify as a "qualifying child" where investment income wouldn't matter. However, this might actually work out better financially for your family overall. Your brother should definitely file his own return and will be able to claim his full standard deduction. More importantly, he'll likely qualify for education tax credits like the American Opportunity Credit (up to $2,500) or the Lifetime Learning Credit, which could provide significant tax benefits that your mom wouldn't be able to claim for him anyway. For your mom's situation, make sure she explores other tax benefits available to retirees. Since she retired mid-year, she should check if she qualifies for the Retirement Savings Contribution Credit on any 401k contributions she made before retiring. Also, if she hasn't already, she should review her withholding on any pension or Social Security benefits to avoid underpayment issues next year. Sometimes what looks like a tax disadvantage initially can actually work out better when you look at the whole picture!