One thing I'm not seeing mentioned is the timing. Getting married in December 2025 vs January 2026 makes a HUGE difference for taxes. The IRS considers you married for the ENTIRE tax year even if you get married on December 31st. So if they just got married, they'll be "married filing jointly" for the entire 2025 tax year when they file in 2026.

As a tax professional, I want to address a few key points here. First, the $10k difference you calculated seems unusually high for those income levels - typically the marriage bonus for a $145k/$32k couple would be in the $3-5k range as others have mentioned. You might want to double-check those TurboTax calculations. That said, your friend will likely see some legitimate tax benefits. With such disparate incomes, married filing jointly usually results in savings because the higher earner's income gets "averaged" with the lower earner's income, potentially moving more income into lower tax brackets. However, I echo what others have said - marriage is a huge legal and financial commitment that goes far beyond taxes. It affects debt liability, property rights, inheritance, healthcare decisions, and more. If they were already planning to marry eventually, then this might have just accelerated their timeline. But if taxes were the primary driver, that's concerning. My advice: sit down with your friend, acknowledge that you may have been overzealous about the tax benefits, and suggest they speak with a tax professional to get accurate numbers. Most importantly, be supportive of their marriage regardless of how it started - they're the ones who ultimately made the decision.

Great question! I was in a similar situation last year and learned that PayPal survey payments can be tricky to navigate. Since you mentioned making around $800, you're likely below the $600 threshold for receiving a 1099-K from PayPal in 2024, but that doesn't mean the income isn't taxable. The IRS considers survey rewards as taxable income regardless of whether you receive tax forms. Since you're doing this casually rather than as a structured business, you'd typically report it as "other income" on Schedule 1 of your tax return rather than self-employment income on Schedule C. This saves you from paying the additional 15.3% self-employment tax. Make sure to keep records of your survey payments - screenshots of PayPal transactions or emails from survey companies work well. Even though $800 might seem small, it's always better to report it correctly than risk issues later. The IRS has been paying more attention to digital payment platforms lately, so proper documentation is key.

One thing to keep in mind is that the $600 threshold for 1099-K forms changed recently. For 2024, PayPal and other payment processors are required to issue 1099-K forms if you receive $600 or more in payments for goods and services (this was lowered from the previous $20,000 threshold). Since you mentioned making around $800 from surveys, there's a good chance you'll receive a 1099-K from PayPal for 2024. However, as others have mentioned, receiving this form doesn't change your tax obligations - you still need to report the income even if you don't get the form. The key distinction is whether your survey activities constitute a business or hobby. If you're just doing surveys occasionally in your spare time without any business-like approach, you can report it as "other income" on Schedule 1. But if you're doing it regularly with the intent to make profit, the IRS might consider it self-employment income requiring Schedule C and self-employment taxes. Keep good records either way - a simple spreadsheet tracking survey payments with dates and amounts will serve you well come tax time.

Anybody know if this question on the 1040 about digital assets is new? I swear I don't remember seeing this on my tax forms before last year. Is the IRS just trying to crack down on crypto now?

I had the exact same confusion with my Robinhood crypto trades! After going through this myself, I can confirm that yes, you absolutely need to answer "Yes" to that digital asset question. The IRS doesn't care which platform you used - crypto is crypto. One tip that really helped me: make sure you download your full transaction history from Robinhood, not just rely on the 1099-B. I found some small transactions that weren't clearly reflected on the form but still needed to be reported. Also, if you did any transfers between different cryptocurrencies (like Bitcoin to Ethereum), those count as taxable events too, even if you didn't convert back to cash. The "basis not reported to IRS" thing is annoying but manageable if you keep good records. I just went through my transaction history month by month and matched up my purchases with sales. Takes some time but beats getting a letter from the IRS later!

Has anyone here actually done what the OP is asking about? I'm in almost the identical situation (retired from state job, now working part-time with 401k access). My HR department at the new job got confused when I told them about my 457b contributions earlier this year. They kept saying I was over the limit already, but I showed them the IRS guidelines about separate limits.

I'm in a similar situation but with a twist - I'm 58 and considering whether to use the special 3-year catchup provision for my 457b or wait until I'm eligible for the regular age 50+ catchup. My state plan allows the special catchup starting 3 years before normal retirement age (which is 60 for me). One thing I learned from my benefits coordinator is that you can't use both the special 3-year catchup AND the age 50+ catchup in the same year - you have to choose whichever gives you the higher contribution limit. In most cases, the special 3-year catchup allows much higher contributions because it lets you make up for years when you didn't max out your contributions. For anyone considering this, make sure you understand your plan's normal retirement age definition. Some state plans define it differently than others, which affects when you become eligible for the special catchup provision.

Quick question - I'm using TurboTax and wondering if it can handle Form 3115 for missed depreciation? Their support wasn't clear about it.

I went through this exact same situation with three rental properties I bought between 2020-2022. The stress was overwhelming until I realized how straightforward the fix actually is with Form 3115. A few practical tips that helped me: 1. Calculate your basis correctly - for residential rentals, you can only depreciate the building, not the land. Your purchase contract or property tax assessment should show the land vs building allocation. 2. Remember that depreciation starts when the property is "placed in service" for rental use, not necessarily when you bought it. If you spent time renovating before it was rentable, that affects your start date. 3. The Section 481(a) adjustment on Form 3115 will be substantial (mine was over $35k total), but don't worry - this is exactly what the form is designed for. The IRS expects large catch-up amounts. 4. File Form 3115 with your current year return, not as an amendment to prior years. This is key - it saves you from the hassle and potential issues of multiple amended returns. One last thing - make sure you continue depreciating correctly going forward! The mistake is fixable, but you don't want to repeat it. Good luck!