This is a really tough situation, but you're absolutely right to be concerned. Your boss is essentially asking you to be complicit in tax evasion, and his behavior - especially discouraging you from seeking professional tax advice - is a huge red flag. Here's what you need to know: You are legally required to report ALL income to the IRS, regardless of how it's paid to you. The fact that your employer pays you partially in cash doesn't make that portion non-taxable. Keep detailed records of every payment you receive (dates, amounts, cash vs. check) - this will be crucial for your tax filing. I'd strongly recommend getting a second job lined up before taking any action. While there are legal protections for whistleblowers, small businesses can sometimes find ways to retaliate, and you don't want to be left without income while dealing with this mess. When you file your taxes, report your complete income even if your W-2 doesn't reflect the cash payments. You can use Form 4852 if needed to report the correct amounts. The IRS cares most about individuals paying their proper taxes - if you're honest and thorough in your reporting, you'll be protecting yourself even if your employer isn't handling things properly. Stay strong and trust your instincts - this situation definitely feels sketchy because it IS sketchy.

I'm a tax preparer and I see situations like this more often than you'd think. Your instincts are absolutely correct - what your boss is doing is tax evasion, and his attempts to prevent you from seeking professional advice are major warning signs. Here's the bottom line: ALL income must be reported to the IRS, period. Cash payments don't have some magical exemption just because they're harder to track. Your boss claiming the cash "isn't reported to the IRS" while also saying it's "handled through business deductions" makes no sense - he's clearly making things up as he goes. The good news is you can absolutely protect yourself. Keep meticulous records of every single payment (I recommend a simple spreadsheet with date, amount, and payment type). When tax time comes, report your TOTAL income regardless of what appears on your W-2. If your W-2 is incorrect, use Form 4852 to report the actual amounts. Yes, you'll owe more taxes since no withholding was taken from the cash portion, but that's infinitely better than facing penalties for underreporting income. The IRS has payment plan options if you can't pay the full amount immediately. I'd also strongly suggest starting your job search now. Employers who operate this way rarely change, and you deserve to work somewhere that handles payroll legally and transparently. You're young and clearly have good judgment - don't let this situation derail your financial future.

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!

This is such a valuable discussion! I'm a CPA and wanted to add a few technical points that might help clarify the joint ownership situation for the used EV credit. The IRS guidance emphasizes that the credit belongs to the "qualifying buyer" - meaning the person who meets the income requirements AND has genuine ownership interest. Your mom being added just to circumvent income limits would be problematic, but if she's truly a co-purchaser with real financial stake and usage rights, that's legitimate. A few practical tips: 1) Have your mom contribute meaningfully to the down payment or be equally responsible for loan payments, 2) Make sure she's listed as a driver on the insurance policy from day one, 3) Document any agreement about shared usage (even informally), and 4) Keep records showing she genuinely benefits from the purchase. The point-of-sale option makes this much easier since she doesn't need current tax liability, but she WILL need to report the credit transfer on her next tax return. Also remember that if the arrangement is later deemed improper, the IRS can recapture that $4,000 from either party. One last note - make sure your chosen dealer is actually registered with the IRS for credit transfers. Many smaller used car lots still aren't set up for this, which would force you to claim the credit on a tax return instead (where the tax liability issue would become relevant again).

This thread has been incredibly helpful! I'm actually in a very similar situation with my dad who qualifies for the income requirements. After reading through all these responses, it sounds like the key is establishing genuine joint ownership rather than just adding someone to get around the income limits. From what I'm gathering, the most important factors are: 1) Making sure the qualifying person (your mom) is truly involved in the purchase and ownership, 2) Having proper documentation of shared financial responsibility and usage, 3) Ensuring the dealership is registered with the IRS for point-of-sale transfers, and 4) Understanding that your mom will need to report this on her tax return even though she gets the credit upfront. The dealership perspective from @Ingrid Larsson about requiring physical presence and attestation forms seems like the standard process most legitimate dealers follow. And the CPA advice from @Keisha Taylor about documenting everything upfront is really smart - better to have too much paperwork than not enough if the IRS ever questions it. One question I still have - has anyone dealt with this across state lines? My dad and I live in different states, so I'm wondering if that creates any additional complications for the joint ownership or credit transfer process.

Quick question - when you convert to rental, do you use the original purchase price of appliances as the basis, or the fair market value at the time of conversion? My stove is 10 years old but still works fine.

Great question about appliance depreciation! I went through this exact situation when I converted my condo to a rental two years ago. You absolutely can depreciate appliances separately from the building without needing a formal cost segregation study - this is standard practice for clearly identifiable personal property. The key is proper documentation. For your partner's new dryer, you're in great shape since it was recently purchased. For older appliances without receipts, I used online marketplaces like Facebook Marketplace and Craigslist to find comparable used items of the same brand/model to establish fair market value at conversion. One tip: take detailed photos of all appliances with model numbers visible before placing the property in service as a rental. This creates a solid record for the IRS showing what was included and their condition at conversion. The 5-year depreciation schedule for appliances will definitely give you better tax benefits in the early years compared to the 27.5-year building depreciation. Just make sure to keep everything well-documented on your Form 4562!