One thing no one's mentioned yet - if you guys are getting married next summer, would it be before or after December 31st? Because your tax filing status is determined by your marital status on the last day of the tax year. If you're getting married before the end of 2025, then you'd be filing as married for that whole year anyway, and this becomes a non-issue since you'd likely file jointly and claim the child together.

Great advice from everyone here! I want to add something important that hasn't been fully addressed - the "support test" calculation can be trickier than it seems at first glance. When determining if your fiancé provides more than 50% of your daughter's support, you need to include ALL sources of support, not just what you and your fiancé provide. This includes things like: - Any child support from your daughter's biological father - Government benefits (SNAP, WIC, Medicaid, etc.) - Support from grandparents or other relatives - Even the fair rental value if your daughter has her own room The IRS has a specific worksheet (Publication 501) that breaks down exactly how to calculate total support. I've seen people get tripped up because they only counted the money they and their partner spent, forgetting about other sources of support that might push the total over the threshold. Also, keep detailed records throughout the year - receipts, bank statements, etc. The IRS can ask for documentation if they audit dependent claims, and "he pays for most things" won't be enough if you can't prove the actual dollar amounts.

This is such a helpful thread! I'm in a similar situation with my podcast Patreon - made about $900 last year and was wondering the same thing about reporting requirements. One thing I wanted to add that I learned from my accountant: even though you need to report all income regardless of amount, there's actually a threshold for when you need to file Schedule SE (self-employment tax). If your net profit from self-employment is less than $400, you don't have to pay self-employment tax on it, though you still report the income on Schedule C. So for someone like you who made $1,350, if your business expenses bring your net profit below $400, you'd still report the income but wouldn't owe the additional 15.3% self-employment tax. That could be significant savings! Definitely worth tracking those software subscriptions and equipment purchases you mentioned.

This thread has been incredibly helpful! I'm a small YouTube creator who also just started a Patreon last month, and I was completely clueless about the tax implications. Reading through everyone's experiences has been eye-opening. One question I haven't seen addressed yet: what about international supporters? I have patrons from Canada, the UK, and a few other countries. Does it matter where the money is coming from for tax purposes, or is it all just treated the same as domestic income? Also, for anyone just starting out like me, I highly recommend setting up that separate business bank account right away like others mentioned. I opened one last week after reading this thread and it's already making my record-keeping so much cleaner. I wish I had done it from day one! Thanks to everyone who shared their knowledge and experiences - you probably saved me from making some costly mistakes!

Has anyone used the new state reciprocity feature in TurboTax for handling W2G forms? I can't figure out if I'm supposed to report my out-of-state lottery winnings as "gambling winnings" or as "other income" when it asks about sources of income from other states.

Great question about multi-state lottery winnings! I went through something similar last year with winnings from Ohio and Kentucky. One thing I learned the hard way - make sure to keep detailed records of exactly where each winning ticket was purchased, not just where you claimed the prize. I had a situation where I bought a ticket in Kentucky but claimed it at an Ohio retailer near the border, and initially reported it to the wrong state. Also, double-check that the state withholding amounts on your W2Gs match what was actually deducted. I found discrepancies on two of my forms where the withholding was calculated incorrectly by the lottery commission. Getting corrected W2Gs before filing saved me from having to amend my returns later. The good news is that Ohio's tax credit system works really well for preventing double taxation on out-of-state gambling winnings. Just make sure you file your Pennsylvania non-resident return first, then use those results when completing your Ohio resident return to claim the proper credit.

As someone who just passed all three parts of the EA exam while working full-time, I wanted to add my perspective on realistic timelines and study strategies. Three months is definitely achievable, especially with your tax background. I managed it in about 3.5 months working 40+ hours weekly. The key is being strategic about your study schedule - I found that studying in shorter, focused sessions (45-60 minutes) was more effective than marathon study sessions when I was already mentally drained from work. For study materials, I used a combination approach. Gleim was my primary resource for comprehensive coverage and practice questions. But I also supplemented with free resources like the IRS's own publications - Publication 17 for individual taxes and Publication 334 for business taxes. These are dry but authoritative and helped fill gaps in my understanding. One thing I haven't seen mentioned yet is the importance of simulating actual exam conditions during practice. The EA exam is computerized and timed, so I made sure to take full-length practice exams under similar conditions. This helped with both content knowledge and time management. Also, don't underestimate the value of forming a study group or finding an accountability partner. Even if it's just virtual check-ins with fellow EA candidates, having that support system really helped me stay motivated during the tough weeks. Good luck with your preparation! The certification is absolutely worth the effort.

Great question about the EA exam timeline! I'm actually in a similar boat - working full-time at a regional CPA firm and just started my EA exam prep last month. From my research and talking to colleagues who've passed, three months is definitely doable but you'll need to be really disciplined. I'm planning about 15-20 hours per week, which breaks down to roughly 2 hours on weeknights and 6-8 hours total over the weekend. One resource I haven't seen mentioned yet is the IRS's Continuing Education Provider directory - many of them offer EA exam prep courses that you can take at your own pace. I found a few that have evening and weekend options specifically designed for working professionals. Also, if your firm has any EAs on staff, definitely ask if you can pick their brains about study strategies. My supervisor gave me some old practice exams and shared which topics tend to be heavily tested versus what you can skim over. The commute study idea is brilliant - I've been using the IRS Tax Pro podcasts during my drive, and while they're not specifically EA exam focused, they cover a lot of the same material in a digestible format. Keep us posted on how your prep goes! It would be great to have someone else going through this journey at the same time.

Went thru this exact thing and ended up calling the IRS. They said to report my percentage on Schedule D, include a statement with the trust's EIN info, and keep copies of everything the trust gave me. Btw the basis is the value on the date of death, not original purchase price. That's why no gain usually.

I'm dealing with a very similar situation right now with my dad's house that we sold through a trust last month. My siblings and I are all confused about the same thing - the 1099-S went to the trust, not us individually. From what I've learned talking to our estate attorney, you definitely need to report your 50% beneficial interest on your personal return, not just what you've received so far. The IRS expects you to report based on your ownership percentage in the trust, regardless of distribution timing. One thing that helped us was getting a letter from our attorney explaining the trust distribution and our individual percentages. We're including copies of this with our tax returns along with a brief statement referencing the trust's 1099-S. Our attorney said this creates a clear paper trail for the IRS if they have any questions about why we're reporting income that doesn't directly match a 1099 in our names. The stepped-up basis rule that others mentioned is huge - make sure you get documentation of the property's value when it was inherited, not what it was originally purchased for. That's probably why you don't have much in capital gains to worry about.