I did check both parts, and all of our kids were qualifying children under 17, so we didn't have any "other dependents" to claim. And we didn't receive any advance payments in 2021 that would affect the 2022 return - we actually opted out of those. What's confusing me is that with 4 kids, we should have gotten the full $8,000 ($2,000 × 4), but when I look at the actual credit amount on our Form 1040, it's significantly less. I'm wondering if maybe our tax software or preparer made a calculation error on Form 8812.

In that case, I would recommend looking specifically at the calculations on Form 8812, particularly around the refundable portion. For 2022, the refundable portion was limited to 15% of your earned income above $2,500. So if somehow your "earned income" was calculated incorrectly (which is different from AGI), that could limit the refundable portion. Another thing to check is if you had any other non-refundable credits that used up your tax liability, potentially limiting how much of the non-refundable portion of the CTC you could use.

I used TurboTax to amend my 2022 return specifically for Form 8812 issues. It was pretty simple - they walk you through which forms need to be changed and calculate everything for you. Just make sure you have a copy of your original return handy because you'll need to enter some of the original information first before making changes.

I thought it was just 4 years total regardless of what "year" you're in academically? My advisor told me as long as you haven't claimed it 4 times already you can still get it.

Your advisor is partially right, but there's more to it. You can claim AOTC for up to 4 tax years, but there's also a requirement that you must be enrolled in one of the first 4 years of post-secondary education (what the IRS considers your freshman through senior years). If you're in what would academically be considered your 5th year or greater (like if you're working on a second bachelor's or have been in school longer than the typical 4-year program), you generally wouldn't qualify regardless of how many times you've claimed it before. The Lifetime Learning Credit doesn't have this restriction, which is why it's available for graduate students and lifelong learners.

How do the 1098-T forms work with this? Mine always seems to have different amounts than what I actually paid because of timing of the payments vs when classes start.

I hadn't considered a Certified Acceptance Agent. Is there any downside to using one compared to submitting directly? Does it take longer to process when going through an agent?

There's really no downside in terms of processing time - in fact, it can be faster because CAAs reduce the likelihood of rejections due to documentation errors. The IRS processes the application the same way regardless of submission method. The only real downside is the cost. Most CAAs charge between $200-300 for their service, which includes document verification and submission. But considering the hassle of potentially having to resubmit if something goes wrong (plus the risk of sending original documents through the mail), many find it worthwhile. In my experience, using a CAA actually shaved weeks off the process because everything was submitted correctly the first time.

From my understanding, you need the current year's Form 1098, not the previous year's. That's what my tax preparer told me. Maybe that's why it was rejected?

You actually need the most recently issued Form 1098, which would typically be from the previous tax year. When applying early in the year (like now for 2025 filing season), you'd use the 2024 mortgage interest statement since the 2025 one wouldn't be available yet. The IRS specifically wants to see that you have an ongoing mortgage interest situation that creates a tax need. If you're applying mid-year, you might also include recent mortgage statements showing continued interest payments. The key point is demonstrating a continued tax purpose for needing the ITIN, not just a one-time situation.

What's the ballpark cost difference between having someone prepare my taxes vs just reviewing what I've done myself? I'm trying to save money but also don't want to miss deductions.

For simple returns like yours, full preparation might run $200-400 depending on your location and the professional's credentials (CPAs charge more than enrolled agents or tax preparers). A review service typically costs $50-150. The review can be really valuable - they'll look for obvious errors, missed deductions, and red flags that might trigger an audit. They can also advise on adjusting your withholding so you don't end up owing again next year. Many people find this middle ground approach gives them peace of mind without the full expense of preparation.

This is so true! I used TurboTax for years and then got audited over a home office deduction. Their "audit defense" was basically just a PDF explaining what I should do. Ended up hiring a professional anyway to help me respond properly. Wish I'd just gone to them in the first place.

That's really helpful! I'll double check my 5498 form. Is there a specific place on the form where it shows which tax year the contribution is for? My contribution was made in April 2025 but designated for 2024 tax year.

Look at Box 8 of Form 5498. It should specifically indicate "SEP contributions" and show the amount. Most importantly, the form should have the correct tax year printed at the top (2024 in your case, even though it was issued in 2025). If the form shows the contribution but lists it for the wrong year, ask your financial institution to issue a corrected 5498. This happens more often than you'd think, and most institutions can fix it pretty quickly if you point out the error.

Good thought! I checked the transcript pretty carefully and didn't see any offsets or redirects of the funds. It specifically shows they just calculated a lower refund amount because they zeroed out the SEP IRA deduction line. No other debts or issues mentioned.

That's definitely an IRS processing error then. One more tip - when you do call them, make sure to use the specific phrase "math error authority" when explaining your situation. This is a technical term they use internally and can sometimes help get your case to the right department faster.