One thing I haven't seen mentioned yet is the potential impact of state disability insurance (SDI) and other payroll taxes for remote workers. Even if you don't owe income tax to a state, you might still be subject to their payroll taxes if your employer is based there. For example, California has SDI tax that applies to all wages paid by California employers, regardless of where the work is performed. This is separate from income tax obligations. Similarly, some states have unemployment insurance requirements that follow the employer's location rather than where you work. I learned this the hard way when I discovered I owed California SDI tax even though I successfully argued I didn't owe California income tax as a remote worker. The rules are completely different and it's easy to overlook. If you're dealing with multi-state issues, make sure to research both income tax AND payroll tax obligations separately. Your payroll department might not be handling this correctly either - I've seen cases where employers weren't withholding required SDI but were withholding income tax they shouldn't have been. Also worth noting: some states are starting to require quarterly estimated payments for remote workers, especially if you're classified as an independent contractor rather than an employee. The requirements can be quite different from your home state's rules.

This thread has been incredibly helpful! I'm in a similar situation as a remote worker and had no idea about some of these complexities. A few additional points that might help others: **Documentation is key**: Beyond the work location log mentioned earlier, I'd also recommend saving all travel receipts, hotel bookings, and any emails/communications that establish your remote work arrangement. If your company has a formal remote work policy, get a copy for your records. **State-specific quirks**: Each state really does have its own weird rules. For example, I discovered that some states consider ANY work performed on their soil as creating a filing requirement, while others have safe harbors for short-term business travel (usually under 30 days). **Professional help timing**: If you're going to consult a tax professional, do it BEFORE you file rather than after you get an audit notice. Multi-state tax specialists can often structure your filing approach to minimize future audit risk. **Estimated payments**: Don't forget that if you end up owing taxes to multiple states, you might need to make quarterly estimated payments to avoid underpayment penalties. The safe harbor rules can be different for each state too. The remote work tax landscape is definitely still evolving post-pandemic, so staying informed and keeping good records is more important than ever!

I work as a tax preparer and see these situations fairly often. Based on what you've described, you should be able to claim your partner as a dependent. The key tests you need to meet are: 1. **Support Test**: You provided more than half of his total support for the year (sounds like you clearly meet this) 2. **Gross Income Test**: His income must be less than $4,700 for 2024 (you mentioned zero income, so ✓) 3. **Member of Household Test**: This is where the incarceration question comes in For the member of household test, the IRS considers temporary absences - including incarceration, hospitalization, education, military service, etc. - as time the person is still living with you, provided it's reasonable to assume they'll return to your household. Since your partner lived with you for 7 months and returned after his release, the 5-month incarceration would be considered a temporary absence. Make sure to keep documentation of the financial support you provided (rent, utilities, groceries, etc.) and proof of your shared residence before and after the incarceration period. You don't need to submit anything with your return, but having records ready is always smart in case of questions later. Also double-check that no one else (like his parents) will be claiming him as a dependent to avoid any conflicts with the IRS.

Just wanted to add my experience from a similar situation last year. My boyfriend was incarcerated for 4 months in 2023, and I was nervous about claiming him as a dependent even though I clearly met all the support requirements. I ended up consulting with a CPA who confirmed that the temporary absence rule definitely applies to incarceration periods. One thing that really helped was creating a simple spreadsheet tracking all the support I provided throughout the year - rent, utilities, food, medical expenses, etc. Even though he wasn't physically present for those 4 months, I was still covering his portion of rent and keeping up with expenses that would resume when he returned. The CPA said this kind of documentation clearly demonstrates the ongoing financial relationship and intent for him to return to the household. Also, don't forget to consider any expenses you might have incurred related to his incarceration - commissary money, phone calls, transportation to visit - these all count as support you provided during that period. I claimed him successfully and had no issues with the IRS. Sometimes the tax code actually works in favor of people in difficult situations!

Has anyone used TurboTax Self-Employed for this kind of situation? I'm wondering if it helps identify which expenses qualify when you're in that gray area.

The transition from hobby to business can definitely be confusing! The good news is that there's no magic income number you need to hit before you can start deducting business expenses. What matters most is your intent and how you operate. Here's what I'd recommend documenting to strengthen your position: Keep a separate business bank account (even if it's just a basic checking account), maintain detailed records of all income and expenses, create a simple business plan showing how you intend to become profitable, and treat it professionally with business cards, invoices, etc. The IRS will look at factors like whether you're actively seeking customers, if you're improving your skills/methods to increase profits, how much time you're dedicating to it, and whether you're conducting it in a businesslike manner. Even if you're operating at a loss initially, that's completely normal for new businesses. Since you're already tracking expenses, you're on the right track! Just make sure each expense has a clear business purpose and keep good records. The key is being able to show you're genuinely trying to build a profitable business, not just enjoying an expensive hobby.

Is this her first teaching job? I'm a school district payroll manager, and we see this issue CONSTANTLY with new teachers who don't understand their retirement system. In many states, teachers have mandatory retirement contributions that are taken INSTEAD OF Social Security (not in addition to it). So the $0 for Social Security might be correct if she's in a state with a separate teacher retirement system. But the federal withholding is definitely wrong. $41 per paycheck for someone making $62k would only make sense if she claimed she was exempt or claimed a huge number of dependents. My guess: she filled out her W-4 incorrectly when starting the new position. You should: 1. Check her W-4 on file 2. Compare her last paystub YTD amounts to the W2 3. Ask about her state's teacher retirement system rules

I'm dealing with a very similar situation right now! My husband is also a teacher and we just discovered his W2 shows almost no federal withholding despite making $58k. After reading through these responses, I'm starting to think it's definitely a W-4 issue. What really helped us was getting a copy of his W-4 from HR - turns out he accidentally marked "exempt" on his first day because he was rushing through paperwork and didn't understand what it meant. The payroll person said this happens with new teachers ALL THE TIME. We're now working with the district to correct his withholding going forward and setting up quarterly payments to avoid another surprise next year. Definitely check what's on file for her W-4 - that's probably where the problem started. Also, if you're in one of those states where teachers don't pay Social Security (like we are in Ohio), that part might actually be correct. But the federal withholding being so low is almost certainly a W-4 error.

After verification mine took exactly 21 days to clear. Just hang in there!

Going through the same thing right now! Code 570 showed up after I verified my identity 2 weeks ago. From what I've learned, it's basically the IRS putting a temporary freeze while they review everything to make sure it all matches up. The waiting is brutal when you need that money, but hang in there - most people see it clear within 2-6 weeks after verification. Keep checking your transcript daily for any changes, and maybe set up informed delivery so you don't miss any mail from them. You got this! 💪