Has anyone considered whether your mom could be classified as an independent contractor vs an employee? If she's only playing at events organized by one company, and they direct when and where she performs, she might actually qualify as an employee. In that case, the wedding coordinator should be paying half of her FICA taxes. The IRS has a 20-factor test to determine proper classification. Might be worth looking into if this is ongoing work. The coordinator can't just give someone a 1099 to avoid payroll taxes if the relationship is really employer-employee.

Guys I'm in a similar situation but with writing gigs. If I made around $5k last year from freelance work, do I HAVE to file Schedule SE? Can't I just pay the income tax and skip the self-employment part? The extra 15% is killing me financially.

So I went through this exact situation working at a nail salon! My boss was paying us half in cash and insisting we didn't need to report it. When tax time came, I was freaking out. Here's what I did: 1. Started keeping my own records of EVERYTHING I earned 2. Reported my full income on my tax return (both check and cash) 3. When my W-2 only showed half my actual income, I filed Form 4852 (substitute W-2) 4. I also filed Form 8919 for the unreported wages I ended up owing more taxes than I expected that year (since no tax was withheld from the cash portion), but I avoided potential penalties for underreporting. Also, the IRS didn't come after me - they were more interested in the employer.

I'm dealing with something very similar at my current job! My employer has been paying part of my wages "under the table" and I've been so stressed about what to do. Reading through all these responses has been incredibly helpful. I think the key takeaway is that we need to protect ourselves first - report ALL income regardless of what our employers do. It sounds scary, but it's way better than potentially facing penalties later for underreporting. @StarSeeker - I'd definitely recommend starting your job search now while you figure out the tax situation. Even if you don't leave immediately, having other options will make you feel more secure about doing the right thing tax-wise. And honestly, any employer who tries to convince you not to talk to tax professionals is throwing up major red flags. Keep detailed records of everything, and don't let your boss intimidate you out of protecting your own financial future. You've got this!

anyone know if this is the same for federal returns?

Had the exact same thing happen with my MD refund last week! Called and they said it was approved but the online portal didn't update for another 2 days. Got my direct deposit exactly when they originally estimated though, so don't worry too much. The backend systems move faster than what we can see on our end.

The IRS has a dependency assistant tool on their website that can help you figure this out: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

Based on what you've described, your brother should be able to claim you as a qualifying relative dependent. Since you have no income, lived with him all of 2023, and he provides all your support, you meet all the requirements. The key tests are: 1) Your gross income under $4,400 (you have $0), 2) He provides more than half your support (sounds like 100%), 3) You lived together all year (check), and 4) You're not filing jointly with a spouse. This would give him a $500 tax credit for other dependents. Just make sure if you do file a return for any reason, you check the box indicating someone can claim you as a dependent. Hope your health improves soon!

One thing nobody's mentioned - the used EV has to cost less than $25,000 to qualify for the credit. And it has to be at least 2 years old. Also if your mom has already claimed an EV credit in the past 3 years, she can't get another one. The dealer should verify all this before processing.

Great thread! I'm a tax preparer and see this situation frequently. One additional consideration - make sure your mom understands she'll need to report this transaction on her tax return even though she's getting the credit at point of sale. The dealer will issue her a Form 1099 showing the credit amount, and she'll need to include this when filing. Also, keep detailed records of the joint ownership arrangement, insurance policies showing her as a driver, and any documentation about shared vehicle use. The IRS has been conducting more audits on EV credits lately, especially for joint ownership situations. Having a paper trail that shows legitimate shared ownership and use will protect both of you if questions arise later. The income requirements are based on modified adjusted gross income, so make sure you're calculating that correctly - it's not just the income shown on the tax return but includes some normally excluded items.