That's actually super helpful to know! I definitely had taxes taken out of each check. Do you know if I need to file state taxes too? I'm in Illinois if that matters.

Yes, you should file state taxes for Illinois as well. Illinois has a flat income tax rate (currently 4.95%), and similar to federal taxes, if you had state taxes withheld from your paychecks, you'll likely get that money back if your income was only $3,200 for the year. The good news is that most tax software will let you file both federal and state returns, and will walk you through the process for both. Many of them offer free filing for simple tax situations like yours.

This is actually not correct information. The wage and income transcript for 2024 is generally available by May-June of 2025. So it would be available before the October extension deadline if the OP needs to file an extension.

Did you have to pay for the therapist letter? I'm in a similar situation but can't afford therapy right now.

I didn't have to pay specifically for the letter. My therapist wrote it as part of my ongoing treatment. If you can't afford therapy, see if your school has counseling services - they're usually free or very low cost for students. School counselors can often provide similar documentation. Many schools also have legal aid services for students that can help you draft affidavits or formal statements about your situation. Church leaders, high school teachers who know your situation, or even employers who are familiar with your family circumstances can sometimes provide supporting letters too.

I tried that route last year. You can submit the FAFSA that way, but you'll only be eligible for unsubsidized loans unless you get the dependency override approved. Your school's financial aid office will require additional documentation to consider you for grants or subsidized loans.

Isn't that technically incorrect though? I thought you're supposed to report the full W-2 amounts exactly as they appear on the forms, then use Form 8958 to show the allocation. Wouldn't entering modified amounts on the W-2 entries potentially cause issues?

You're absolutely right that it's not the technically correct way to do it. The proper way is to enter the W-2s as they appear and then use Form 8958 to allocate. However, Free Fillable Forms has this verification issue that prevents many people from e-filing when done the correct way. It's one of those situations where the system limitation forces a workaround. The important thing is that the final tax calculation is correct and Form 8958 properly shows the community property allocation. I spoke with a tax professional before doing it this way, and they said that as long as Form 8958 is included and properly shows how you derived your numbers, it should be fine. The IRS is ultimately looking at your taxable income, withholding, and whether you've properly split community property income.

Paper filing works but it's sooo slow right now. I paper filed my MFS return from Washington state last year and it took almost 7 months to get my refund. The IRS is still catching up on their backlog.

That's a really good point I hadn't considered. Looking back at our contract, it specifically describes the fee as "payment for client acquisition services" rather than a revenue share. Would that language definitely make it a service requiring a 1099?

Based on that contract language, yes, it would most likely be considered a payment for services that requires a 1099. When the contract specifically calls it "payment for client acquisition services," the IRS would typically view that as you purchasing a service from them. If it were structured as a revenue split or commission arrangement, the contract would usually contain language about "shared revenue" or "commission splits" and might include different terms about the business relationship. The specific language in contracts really matters when determining tax reporting requirements, so you're on the right track focusing on those exact terms.

Not everyone can afford a CPA, especially small businesses just starting out. I do my own taxes to save money and questions like this are really important for DIY tax filers.

That's a fair point. I didn't mean to sound dismissive. I started doing my own taxes too but switched to a CPA once these business relationships got complicated. For DIY filers, I think the main thing is documenting everything clearly - get those W-9s from anyone you pay, track all payments meticulously, and maybe consider investing in good accounting software that flags when you need to issue 1099s. The peace of mind is worth it, even if you're handling tax filing yourself.

What counts as "detailed records"? I've been keeping receipts but not much else. Should I be doing more?

Receipts are a good start, but you should also note exactly what each expense was for. Create a spreadsheet that categorizes everything as either a repair or improvement. Take dated photos before, during, and after major work. Keep copies of contracts with any contractors. For example, don't just have a receipt that says "bathroom work - $3,500." Have documentation showing it was a complete bathroom remodel with new fixtures, tile, etc. This makes it clear it's a capital improvement rather than a repair. The IRS can get very picky about what qualifies as an immediate deduction versus what must be depreciated.

I've used TurboTax for my two rental properties for about 3 years. It works fine for basic rental situations but gets confusing with complex renovations. There's a section specifically for rental properties where you can enter all your income and expenses. It'll walk you through depreciation too.