Has anyone here actually been audited for small side hustle income? I'm curious how common it really is for the IRS to come after people making under $5k on payment apps.

The $600 threshold is definitely real now - I learned this the hard way when I got a 1099-K for my pet sitting side business last year. Even though you might not get the form, you're still required to report all income. One thing that really helped me was setting up a separate savings account and putting aside about 25-30% of each payment for taxes (covers both income tax and self-employment tax). That way when tax time comes, you're not scrambling to find money to pay what you owe. Also, don't stress too much about perfect record keeping for what's already happened - the IRS accepts reasonable documentation. Your Apple Cash screenshots showing dates, amounts, and who paid you should be sufficient. Just start keeping better records going forward with a simple spreadsheet tracking income and any business expenses. You're being smart by thinking about this now rather than ignoring it. Most people in your situation who run into trouble are the ones who never report anything at all, not the ones trying to do things right.

Has anyone else noticed that withholding seems super messed up lately? I claimed 0 dependents like OP but I'm still getting way less taken out than last year. I'm worried I'll owe a ton when I file.

Connor, you're definitely not overthinking this! Your approach is actually really smart - claiming 0 dependents on your W-4 will indeed maximize your withholding throughout the year, which often leads to a larger refund when you file. The key thing to remember is that your W-4 withholding and your actual tax return are two completely separate processes. Your W-4 is just telling your employer how much to withhold from each paycheck as an estimate, while your tax return reflects your actual tax situation for the year. Since you have the legal right to claim your son as a dependent for the 2025 tax year (based on your custody agreement), you can absolutely claim him when you file your return, regardless of what you put on your W-4. This might actually work out perfectly for you - you'll have extra tax withheld all year, then get credit for your dependent when you file, potentially resulting in a nice refund. Just make sure you keep good records of your custody arrangement and that you and your ex are crystal clear about who claims your son each year. Having it documented in your divorce decree is ideal. Good luck with the new job!

If your looking to actually understand whats happening instead of guessing, use taxr.ai - seriously the $1 tool saved me hours of research and stress. Just upload your transcript and it breaks everything down.

I had the exact same situation last year! Code 570 with Head of Household status and EIC. The good news is this is pretty routine - the IRS just needs to verify your filing status and EIC eligibility since those are common areas they review. Your transcript looks normal otherwise. The fact that your withholding (806) and EIC (768) credits are dated 4/15 means they've been processed and are just waiting for the 570 hold to lift. Most people see a 571 code (release) within 2-3 weeks. Don't stress too much, your refund is probably just fine! Keep checking your transcript weekly for updates.

Don't forget about state tax benefits too! Some states have additional tax credits or deductions for disability-related home modifications that go beyond what the IRS allows. When we built our accessible home for my wife (spinal cord injury), we got an additional state tax credit that the IRS doesn't offer. Also check if your state has property tax exemptions for disability modifications. In our state, certain accessibility features don't count toward the assessed value of the home for property tax purposes, which saves us about $600/year.

One thing I'd add that hasn't been mentioned yet - make sure you understand the timing of when you can claim these deductions. Since this is new construction, you'll typically claim the medical expense deductions in the tax year when the house is completed and you move in, not when you pay for construction draws throughout the building process. Also, if you're financing the construction, only the actual out-of-pocket costs for the medical modifications count toward your medical expense deduction - you can't deduct the portion that's financed until you actually pay it. This caught me off guard when we built our accessible home. Keep a separate ledger tracking just the medical-related accessibility costs as construction progresses. It'll make tax time much easier and help if you ever need to provide documentation to the IRS. Having everything organized from the start is way better than trying to sort through months of construction invoices later!

Important note about GITCA that nobody mentioned yet - it only covers FEDERAL taxes! Your state might still require detailed tip reporting depending on where you live. I found this out the hard way when my state audited my tip income even though I was in GITCA. Also, keep in mind that GITCA doesn't cover all sources of income at a casino. If you receive bonuses, participate in jackpot splits, or receive other specialized compensation, those might need to be reported separately. Same goes for gambling winnings if you play at your own casino on your off days!

As someone who's been working in casino finance for over 7 years, I can confirm that GITCA is absolutely legitimate and beneficial for most casino employees. The key thing to understand is that it's essentially a "safe harbor" provision - by agreeing to report tips at the established rates, you're protected from tip-specific audits as long as you stay compliant. One thing I'd add that hasn't been mentioned is that GITCA participation is completely voluntary. You can always opt out if you prefer to track and report your actual tips instead. However, most employees find the simplified reporting much easier to manage, especially if you work in high-volume tip positions like dealing or cocktail service. The rates are reviewed periodically and adjusted based on actual industry data, so they're designed to be realistic rather than punitive. Your casino's payroll department should have specific information about the rates for your position and can explain exactly how it will appear on your paystubs and W-2. Don't hesitate to ask them for a detailed breakdown before you decide!