The issue is pretty clear-cut based on IRS Publication 501. To claim someone as a dependent who's not your biological child, they must be either: 1. Your legally adopted child 2. Your stepchild (through legal marriage) 3. Your foster child (placed by authorized agency) 4. A qualifying relative who lives with you all year Since you weren't married during the tax year, your fiancé can't claim your children. Period. It doesn't matter if you're getting married soon or if he supports them financially. The tax preparer was completely wrong, and honestly, I'd report them to the chain's corporate office because this is a pretty basic tax rule they should know.

I worked as a tax preparer for 10 years and this makes me so angry! The tax chain should absolutely help you fix this situation since THEY gave you incorrect advice. They're trying to avoid admitting fault by asking for a different form. Take your disallowment letter straight to corporate if the DM won't help. The specific law is in Internal Revenue Code Section 152, which defines qualifying child and qualifying relative. Being a fiancé doesn't meet either test. Also, if they prepared your return with incorrect information, they should cover any penalties or fees associated with amending the return. Many tax prep companies have accuracy guarantees - check if yours does.

Don't forget about VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) programs if your income is under $60,000 or you're 60+ years old! I volunteered with VITA last year and we helped hundreds of people file completely free. You get your taxes prepared by IRS-certified volunteers and they're really thorough. Most locations can handle W-2s, simple 1099s, education credits, earned income credit, child tax credits, and basic retirement income. They typically can't do complicated business returns or rental properties though. To find a location near you, call 800-906-9887 or use the locator tool on the IRS website. Pro tip: make an appointment early in the season - slots fill up FAST!

Has anyone tried FreeTaxUSA? I've used it for the past 2 years and it's been really good. Federal filing is completely free regardless of income or complexity (I have investments, HSA, and 1099 income), and state is only like $15. The interface isn't as fancy as TurboTax but it gets the job done without upselling you constantly.

Has anyone considered suggesting tax-advantaged accounts? If OP hasn't maxed out their IRA or 401k for the year, putting money there won't help with the current capital gains taxes, but it could reduce their overall tax burden.

Remember that short-term capital gains (held less than a year) are taxed as ordinary income, but long-term gains get preferential rates. If you're close to the 1-year mark on any positions, it might be worth holding just to get the lower long-term rate. Also, don't overlook state taxes! Depending on where you live, state taxes on capital gains can be significant. Some states have no income tax (like TX, FL, WA) while others have high rates. You mentioned $14,500 in gains - what tax bracket are you in? If you're in the 12% federal income tax bracket, your long-term capital gains rate could actually be 0%!

One thing to consider with your cover letter - include specific details about the timeframes your child was with you. For example "Child resided with me continuously from January 1-March 15, April 10-June 8..." etc. I went through this with my ex who traveled constantly for work but still tried to claim our kids. The more specific your documentation, the easier it is for the IRS to verify. Also consider including statements from school officials, daycare providers, or doctors confirming your child's residence with you.

Don't forget to include Form 8379 (Injured Spouse Allocation) with your paper return! This protects your portion of any refund if your STBX has any outstanding debts the IRS might try to collect. During my divorce last year, I neglected to file this and lost half my refund to my ex's student loan debt.

I'm a high school economics teacher and I dedicated two full class periods to teaching students how taxes actually work because it's criminal how little practical knowledge they're given. Made them all calculate taxes on sample incomes and they were shocked at how progressive tax brackets actually work. The best explanation I found was: "If tax brackets are 10% on the first $10k and 15% on income between $10k-$50k, and you make $20k, you pay 10% on the first $10k ($1,000) and 15% on the next $10k ($1,500) for a total of $2,500, not 15% on the full $20k." Simple explanations go a long way.

I didn't understand the difference between marginal and effective tax rates until my 30s, and I have a college degree! I was literally turning down overtime because I thought it would "push me into a higher bracket" and somehow result in less money. What's worse is my dad, who I thought was financially savvy, reinforced this misconception. "Be careful with raises," he'd say, "sometimes you end up with less money after taxes." Now I try to explain to friends using percentages. If you make $100k and your tax bill is $15k, your effective tax rate is 15%, even though your marginal (highest) rate might be 24%. People seem to understand that better.