The income timing strategy mentioned by others is definitely worth exploring if you have any flexibility. I was in a similar situation last year and managed to qualify by pushing some consulting income from December to January. One thing to be careful about though - if you're a W-2 employee, you can't really control when your employer pays you, and attempting to defer already-earned wages might create other tax complications. But if you have self-employment income, freelance work, or bonuses with flexible timing, that could be your ticket. Also worth noting that if you're close to the limit, be extra careful about things like capital gains from selling investments, as those can unexpectedly push you over. I'd suggest running the numbers with a conservative buffer since you don't want to get surprised by income you forgot about when you're doing your 2025 taxes. The $7,500 credit is definitely worth some strategic planning if you can make it work legitimately!

Another strategy to consider is contributing to a traditional IRA if you're eligible. Even if you have a 401k at work, you might still be able to deduct traditional IRA contributions depending on your income level and whether you're covered by an employer plan. For 2025, the contribution limit is $7,000 ($8,000 if you're 50 or older). Also, don't forget about other above-the-line deductions that reduce MAGI: if you're self-employed, you can deduct health insurance premiums and half of your self-employment tax. Student loan interest (up to $2,500) is another deduction if applicable. One thing I learned the hard way is to factor in all income sources - not just salary. Things like bank interest, dividends from taxable accounts, and even unemployment compensation count toward MAGI. I almost missed qualifying because I forgot about some dividend income that pushed me just over the threshold. Since you're about $10k over, the combination of maxing retirement contributions, HSA if available, and careful income timing might actually get you there. Just make sure to track everything carefully throughout 2025 so you know where you stand before taking delivery.

3 Has anyone used H&R Block's expat tax services? They advertise international tax expertise but I'm wondering if they're actually good for complex situations or more for basic expat returns.

I've been dealing with international tax issues for years and wanted to add a few key points that might help with your specific situation: Since you mentioned you're on an L1 visa, make sure your CPA understands the substantial presence test implications and how it affects your filing requirements. Some CPAs miss the nuances of when your tax residency actually began versus when you physically arrived in the US. For your Spanish brokerage account, beyond the FBAR and Form 8938 requirements others mentioned, pay special attention to whether any of your investments are classified as PFICs (Passive Foreign Investment Companies) under US tax law. European mutual funds and ETFs are often treated as PFICs, which have incredibly complex reporting requirements on Form 8621. The penalties for missing this can be severe. Also, don't forget about potential state tax implications depending on which state you're residing in. Some states have their own foreign account reporting requirements or don't conform to federal tax treaties. One last tip - whatever CPA you choose, make sure they provide you with a comprehensive checklist of all required forms before filing season. International tax situations change frequently, and you want someone who stays current with the latest requirements.

Contact your state tax agency ASAP! Don't just assume its normal to never get state refunds. Could be identity theft or worse

Check if your state has any offsets or debts that could be intercepting your refunds. Many states will automatically take refunds to pay off things like back taxes, child support, student loans, or even municipal fines. You can usually find an offset lookup tool on your state's tax website or call their customer service line to see if there are any holds on your account.

The rules r different if shes married btw just fyi

dont forget to claim that sweet sweet american opportunity credit for college expenses 🎓

Remember that filing status affects your tax bracket, standard deduction, and eligibility for certain credits. Head of Household gets you a larger standard deduction ($20,800 for 2024) compared to Single ($13,850). Also impacts your tax brackets in a favorable way. With your income around $58k, the difference could be significant. Might be worth paying a tax pro for a consultation to run the numbers both ways before deciding.

@Sean Kelly, based on what you've described, you'll likely need to file as Single for 2024 since your children lived with you for less than half the year (5 months vs 7 months with your ex). However, there might be some options worth exploring with your ex-spouse. Since you mentioned you're both civil and want to maximize your overall refunds, I'd suggest looking into an alternating arrangement like @Carmen Ruiz mentioned. You could work out an agreement where one of you claims both children and files as Head of Household each year, then switch the following year. This would require your ex to sign Form 8332 in the years when you claim the kids. Another option is to see if your divorce decree or custody agreement has any specific language about tax filing status - sometimes there are clauses that can affect who's considered the custodial parent for tax purposes, regardless of actual time spent. Given the potential savings (@Andre Lefebvre is right about that $7,000 difference in standard deduction), it might be worth consulting with a tax professional or using one of the AI services others mentioned to analyze your specific documents and situation. The difference in tax benefits between Single and Head of Household on a $58k income could be substantial.