Just a tip from someone who went through this last year - if you do get your account levied, immediately open an account at a different bank for any new incoming funds/deposits. The levy only applies to the money in the account at the time it's processed and the specific bank that received the levy notice.

Just went through this exact situation two months ago. The timing is unpredictable - my bank received the levy on a Tuesday and froze my account that same day around noon. I only found out when my debit card was declined at lunch. One thing that really helped was calling my bank directly after I got the Final Notice. While they can't tell you exactly when they'll receive the levy, some banks will put a note on your account to call you immediately when it arrives, giving you a few hours to withdraw emergency cash before the freeze takes effect. Also, if you have direct deposit set up, contact your employer ASAP to see if they can issue you a paper check for your next paycheck. Once that account is frozen, any direct deposits will just sit there until the levy is resolved. I learned this the hard way when my paycheck got stuck in the frozen account for three weeks. The 21-day hold period that was mentioned is accurate, but don't count on it - use that time to aggressively pursue a payment plan with the IRS. I was able to get mine released on day 18, but it was touch and go.

I just went through a very similar situation when my uncle passed last year and left me some stocks and bonds. One thing that really helped me was getting a formal appraisal of all the inherited assets done right away, especially for the real estate. Even though the executor should have this information, having your own documentation of the fair market values on the date of death is crucial for establishing your stepped-up basis. Also, don't forget that you'll need to update the beneficiary information on any investment accounts you inherit. Some brokerage firms have specific procedures for transferring inherited accounts, and you might need to provide a death certificate and estate documentation. For the Pennsylvania inheritance tax, definitely check with the executor first - in most cases, they handle paying this from the estate assets before distribution. If for some reason you're responsible for paying it directly, Pennsylvania does allow payment plans in certain circumstances. The key is not to panic and take it one step at a time!

I'm dealing with a very similar situation right now - my grandfather passed away recently and left me some mutual funds and a small commercial property. One thing that's been helpful is creating a detailed timeline of all the important dates and values. For inheritance tax purposes, you need the fair market value on the exact date of death. For the stocks, this is usually straightforward - just the closing price that day. But for real estate, it can be trickier. The executor should have gotten a professional appraisal, but like others mentioned, having your own documentation is smart. Also, don't forget about any dividends or rental income that might have accrued between the date of death and when you actually receive the assets. That income isn't part of the inheritance tax calculation, but it is regular taxable income to you. One surprise I encountered was that some of the mutual funds had automatic dividend reinvestment plans that kept buying new shares even after my grandfather died. The brokerage had to sort out which shares belonged to the estate versus which were purchased with post-death dividends. It added some complexity to figuring out the exact stepped-up basis amounts.

Just wanted to chime in as someone who went through this exact same situation with my nephew last year. The confusion about 1099-NEC vs W-2 for internships is really common - a lot of companies use 1099s incorrectly to avoid payroll taxes, but you still have to file based on what you received. One thing I learned that might help: if your husband was truly an employee (set schedule, used company equipment, supervised closely), he might technically be misclassified. But even if that's the case, you still need to file the 1099-NEC as self-employment income this year. You can file Form SS-8 with the IRS to get a determination about worker classification for future reference, but it won't change how you handle this year's return. The Schedule C filing is definitely the right approach, and don't forget to look into any education-related tax credits you might qualify for since he's a full-time student. The American Opportunity Tax Credit could potentially offset some of that self-employment tax burden.

One thing I haven't seen mentioned yet is quarterly estimated tax payments. Since your husband received a 1099-NEC and will owe self-employment tax on that $2,700, you might want to consider making quarterly estimated payments next year if he continues doing similar work. The IRS generally expects you to pay taxes as you earn income throughout the year, not just at filing time. If he does another internship or freelance work in 2025, you'll want to calculate roughly what he'll owe in self-employment and income taxes and make quarterly payments to avoid underpayment penalties. For this year's return though, you should be fine just paying everything when you file since this was likely unexpected income. But definitely keep it in mind for future planning - especially if he's in a field where internships and freelance work might be common during his remaining school years.

My accountant told me that if you mark the payments as "friends and family" in PayPal/Venmo, they're not supposed to be reported on 1099-Ks in the first place. Has anyone else heard this? Would solve the whole problem.

This thread has been super helpful! I'm in a similar situation but with a twist - my partner and I also occasionally lend each other larger amounts (like $1000+ for emergencies or big purchases that we pay back over a few months). Are these personal loans between cohabitating partners treated the same way as the regular expense splitting? I'm worried the IRS might see a $1500 Venmo transfer and think it's income when it's actually just me paying back money I borrowed for car repairs. Should we be documenting these larger transfers differently, or do the same rules apply as long as we can show it's personal and not business-related?

Did anyone see if the IRS has specific guidance on this? I looked at Publication 550 and it says interest on CDs is taxable in the year actually or constructively received. I think what's happening with the OP's CD is that the interest is being accrued daily (calculated) but only credited (paid) in January. You're only taxed when it's credited, not as it accrues.

Just to add another perspective - I'm a tax preparer and see this confusion every tax season. The key thing to understand is that CD interest timing can vary significantly even within the same bank depending on the specific product. For your situation, since your balance didn't change until January 2025, you likely won't owe any taxes for 2024 on this CD. The bank will send you a 1099-INT that shows exactly what's taxable for each year. One tip for future CD purchases: always ask specifically about the "interest crediting schedule" before you buy. Some banks will let you choose between monthly, quarterly, or annual crediting, which can help with tax planning. Also, keep in mind that online CD rates often come with different crediting schedules than branch CDs, so don't assume they're the same. For your estimated tax payments as a self-employed person, I'd recommend waiting until you receive your 1099-INT forms in January to know exactly how much CD interest you'll need to account for in your quarterly payments.