As someone who works in benefits administration, I can confirm what others have said about the separation between tax filing and Medicaid eligibility. These are governed by completely different sets of federal and state regulations. Your Medicaid benefits for 2024 were approved based on your household composition and income at the time of application and during periodic renewals. The IRS dependency rules for tax purposes operate independently from these benefit determinations. However, I'd strongly recommend documenting this decision. Keep copies of Form 8332 when you complete it, and consider getting written confirmation from your state Medicaid office about your reporting of the employment change. This creates a paper trail showing you've been transparent about your circumstances throughout the process. One additional tip: when you notify Medicaid about your new job, ask specifically about the transition timeline. Some states have grace periods or step-down coverage options that might help bridge any gaps between losing Medicaid and your new employer coverage taking effect.

I went through almost the exact same situation two years ago! I was a full-time student with a toddler on Medicaid, and when I graduated and got a job, my ex wanted to claim our son for the tax benefits since he'd been helping financially. I was terrified about potential Medicaid repercussions, but after speaking with both a tax professional and my state Medicaid office, I learned what everyone here is confirming - these are completely separate systems. Your Medicaid eligibility was correctly determined based on your circumstances when you applied and throughout 2024. The key things that helped me feel confident about the decision: 1) I had accurately reported my household composition and income to Medicaid throughout the benefit period, 2) I properly completed Form 8332 to release the tax claim, and 3) I immediately reported my employment change to the Medicaid office for future coverage. Two years later, no issues whatsoever. Your daughter's father deserves that tax credit for supporting you both, and you shouldn't have to worry about your past benefits being affected. Just make sure you handle the paperwork correctly going forward!

This is such a great question and the responses have been really helpful! I just wanted to add something that might help others who are trying to reconcile their FICA calculations. One thing that caught me off guard was that some employer-provided benefits that seem small can actually have a noticeable impact on your FICA taxable wages. For example, if your employer pays for any portion of your life insurance premiums above $50,000 in coverage, that's actually taxable for income purposes but the calculation can get complex. Also, if you're paid bi-weekly vs. semi-monthly, the timing of when certain deductions hit your paycheck can sometimes make individual paychecks look different even though they average out correctly over the year. This is especially true for benefits that have annual limits. For anyone building spreadsheets to track this, I'd recommend pulling a few months of paystubs and looking for patterns rather than trying to perfect the calculation based on just one pay period. Sometimes there are annual catch-ups or adjustments that only become clear when you look at multiple pay periods together. The bottom line is that if your paystub shows "FICA wages" or "SS wages" as a separate line item, using that number should give you exactly 6.2% for Social Security and 1.45% for Medicare. If it doesn't, then there might be an actual payroll error worth investigating with HR.

This has been such an educational thread! I was having the exact same confusion with my paycheck calculations and everyone's explanations about pre-tax deductions have really cleared things up. One additional thing that might help others - if you're using payroll software like ADP or Paychex through your employer, many of them have employee portals where you can actually see a detailed breakdown of how your FICA wages are calculated. I logged into mine after reading this thread and found a section that shows exactly which deductions are pre-tax for FICA purposes vs. income tax only. It's really helpful to see it laid out that way because some deductions (like traditional 401k contributions) are pre-tax for income tax but still subject to FICA, while others (like health insurance and FSA contributions) reduce both. Having that visual breakdown made it much easier to understand why my effective FICA percentages were lower than the standard 6.2% and 1.45%. Thanks to everyone who contributed to this discussion - you've saved me hours of spreadsheet frustration!

Has anyone here actually calculated what the penalty would be for a missed Q4 payment? I'm trying to figure out if it's worth the hassle of making a separate payment now vs just handling it when I file in April. If I owe roughly $2,000 for Q4, how bad would the penalty be?

For the IRS website issue, you're absolutely right - since we're in 2025 now, the estimated tax payment option defaults to the current year. The workaround is to use "Make a Payment" and select "Apply Payment to Account" or "Amount Owed" instead of the estimated tax option. When you get to the payment screen, you can specify tax year 2024. Regarding the 1040-ES form - your buddy is partially right. You don't need to mail the form to the IRS, but you should still use it to calculate the correct payment amount rather than just guessing based on tax brackets. The form accounts for your specific situation, deductions, and credits. It's worth the 20 minutes to fill out, especially as a new self-employed person. Don't wait until you file your return. The underpayment penalty starts accruing from the original due date (January 16, 2025 for Q4 2024), not when you file. Even if the penalty isn't huge, making the payment now shows good faith and stops the daily interest charges. Plus, you'll have one less thing to worry about when tax season gets hectic. Welcome to self-employment! The estimated tax system takes some getting used to, but you'll get the hang of it.

Just to add another point - remember that for EITC, your daughter needs to have lived with you for more than half the year. Time away at college counts as temporary absence so that's fine in your case. But also double-check if your income falls within the EITC limits since they change every year.

One thing to keep in mind is that even though your daughter can file her own return for her bookstore income, she likely won't owe any federal taxes since she only made $2,800 (well below the standard deduction). However, she should still file if taxes were withheld from her paychecks - she'll probably get a full refund of any federal taxes that were taken out. Also, since you mentioned you're a single mom, make sure you're filing as Head of Household rather than Single - this gives you a higher standard deduction and potentially more favorable tax brackets. You qualify for Head of Household status since you're unmarried and have a qualifying dependent living with you for more than half the year.

Just to clarify what others have said - H&R Block partners with MetaBank for their Emerald Card and refund transfers. If you're looking at their refund advance products, that's also through MetaBank. The important thing to understand is that you have options: you can get a direct deposit to your own bank account (fastest, no fees), use their Emerald Card (quick, but has fees for certain transactions), or get a refund transfer if you're paying for tax prep with your refund (convenient but comes with fees). Hope this helps with your post-divorce financial organization!

As someone who just went through a similar situation last year, I can confirm MetaBank is H&R Block's banking partner. What really helped me during my divorce process was creating a completely fresh start - I opened a new checking account at a different bank entirely and used that for direct deposit. It eliminated any possibility of confusion or complications with previous joint accounts. The IRS doesn't care which bank receives your refund, so you have total flexibility there. Also, if you're worried about timing, direct deposit to your own account is typically 1-2 days faster than their Emerald Card option. Good luck getting everything sorted out - the first tax season post-divorce feels overwhelming but it gets easier!