Don't forget that if your daughter files her own return, she needs to check the box that says "Someone can claim you as a dependent" on her 1040! I made this mistake with my kid last year and it caused issues with both of our returns being processed.

Great question! I dealt with this exact situation with my 16-year-old last year. Here's what I learned: Your daughter definitely needs to file her own tax return since she has self-employment income over $400. The $1,150 on her 1099-NEC means she'll owe self-employment taxes (about 15.3% on the net earnings). Good news though - you can absolutely still claim her as a dependent on your joint return as long as she meets the qualifying child requirements (under 19, lives with you more than half the year, etc.). A few important things to remember: - She needs to check the "Someone else can claim you as a dependent" box on her return - Consider any business expenses she had for the graphic design work (software, supplies, etc.) - these can reduce her taxable income - She'll file Form 1040 with Schedule C for the business income - Both federal AND state returns will likely be required The process isn't too complicated once you know the rules. FreeTaxUSA should handle her return just fine too. Just make sure both returns are consistent about the dependency claim to avoid any processing delays.

LPT: if this happens again next year, try accessing the mySocialSecurity site very early in the morning (like 5-6am) or very late at night. Their servers get completely overloaded during tax season during normal hours. I couldn't log in for weeks during business hours, then tried at 5:30am and got right in!

As a tax professional, I want to emphasize that while these alternative solutions like taxr.ai and Claimyr might be helpful, the most important thing is accuracy. The IRS does allow you to report Social Security income without the physical SSA-1099 form, but you need to be absolutely certain of the amounts. If you received only two payments in 2023, you should be able to find the exact amounts on your bank statements or by checking your Social Security account online during off-peak hours (as others mentioned). The key is that whatever you report must match exactly what the SSA reports to the IRS. For future reference, SSA-1099 forms are typically available online by February 1st even if the mailed versions are delayed. But definitely try the early morning login trick - I've recommended this to many clients with success. Don't let a delayed form prevent you from filing on time, especially since you can always file an amended return later if needed.

One important thing to keep in mind is that your husband can make estimated tax payments throughout the year to avoid a big surprise at filing time. If he's confident his income will exceed the thresholds, he can calculate the approximate repayment amount and make quarterly payments to the IRS. Also, regarding the IRA contribution strategy - make sure he has earned income to qualify for IRA contributions. Investment income (dividends, capital gains) doesn't count as earned income for IRA purposes, but his contract work income should qualify. The contribution deadline is typically April 15th of the following year, so he has time to see how his final income shakes out before deciding on the contribution amount. Another option worth exploring is income timing - if he has any control over when he receives payments from his contract work or when he realizes capital gains, he might be able to shift some income to 2025 to stay closer to the 400% FPL threshold for 2024.

I've been following this thread and wanted to add some clarity on the estimated tax payment question that came up. Yes, estimated payments should include both your regular income tax liability AND the expected Premium Tax Credit repayment amount. The safe harbor rules (paying 100% of last year's tax or 90% of current year's tax) still apply, but since PTC repayments are considered additional tax liability, they should be factored into your calculations. For the original poster's husband, I'd recommend using IRS Form 1040ES to calculate quarterly payments. The key is to treat the PTC repayment as part of your total tax liability for the year, not as a separate penalty. This way you avoid underpayment penalties and spread the cost over the remaining quarters instead of getting hit with a large bill at filing time. Also, regarding the income timing strategy mentioned earlier - be careful with contract work payments. If the work was performed in 2024, the income generally needs to be reported in 2024 regardless of when payment is received (assuming he's using cash basis accounting, which most individuals do). However, he might have more flexibility with the timing of capital gains realization if he has unrealized gains in his investment portfolio.

Has anyone actually been audited for their ERC? I'm worried about amending since the IRS has been cracking down on ERC claims. Don't want to draw attention to myself by filing an amendment.

I went through a similar situation with my construction business last year. The key thing to remember is that there are actually multiple statute of limitations periods at play here, not just one simple deadline. For your income tax amendments related to ERC, you have 3 years from when you filed your original 2020 return (or the due date if you filed early - which was May 17, 2021 for 2020). For employment tax amendments (if you filed 941-X forms), that's 3 years from when you filed each original quarterly 941. Since you mentioned you received the credit payment 8 months after applying, that suggests you filed a 941-X form. The timing of when you received the actual money doesn't affect your amendment deadlines - it's all based on the original filing dates. One thing that caught my attention in your post - you said you're "thinking" you need to amend some things. Before you start the amendment process, make sure you actually need to. The IRS has been scrutinizing ERC claims heavily, and unnecessary amendments can sometimes trigger reviews. If you're unsure about what needs amending, it might be worth consulting with a tax professional who specializes in ERC issues first.

Has anyone actually calculated how much tax difference this makes? I'm in a similar situation but wondering if it's worth the effort to figure all this out vs just using what's on the 1099-B.

This is such a common issue that catches so many people off guard! I went through the exact same thing last year with my RSU sales. The key thing to remember is that you've already paid taxes on the RSU income when it vested, so you definitely don't want to pay again. One thing that really helped me was creating a simple spreadsheet to track everything. I listed each RSU vest date, the number of shares, and the fair market value per share on that date (which becomes your cost basis). Most equity platforms like Schwab or Fidelity will show this information in your transaction history or under "Tax Lots." Also, don't forget that if you sold immediately after vesting, you might actually have a small capital LOSS due to market fluctuations between vesting and selling. This can actually reduce your overall tax burden slightly. The paperwork is tedious but totally worth it - I saved about $8,500 in taxes by properly reporting my cost basis instead of accepting the $0 basis on my 1099-B. Form 8949 is your friend here, and make sure to use the correct codes for non-covered securities.