If you don't report that W-2 income, you're almost guaranteed to get a letter from the IRS later. They automatically match all W-2s against tax returns. Even small amounts will trigger this process. I learned this the hard way when I didn't report a $275 W-2 from a weekend job. Six months later, I got a notice saying I owed additional tax plus interest. Just not worth the hassle!

Pro tip: if you have multiple small jobs throughout the year, try to keep track of your total estimated income and adjust your W-4 withholding accordingly. I work several part-time jobs as a musician, and made sure each employer withheld enough so I wouldn't owe at tax time.

This discussion has been incredibly comprehensive! As someone who's navigated both the tax and strategic sides of student loan management, I want to add one more angle that might be relevant for your specific situation. Given that you're dealing with $325k in medical school debt, you might also want to consider the state tax implications depending on where you live and work. Some states have their own student loan interest deductions or education credits that could provide additional benefits, though these would still be limited to payments you make yourself, not payments your mom makes. More importantly, if you do decide to pursue the PSLF route that others have excellently outlined, make sure you understand how loan forgiveness will be treated for tax purposes. Under current law, PSLF forgiveness is tax-free, but other forgiveness programs (like income-driven repayment forgiveness after 20-25 years) create taxable income in the year of forgiveness. This could be a massive "tax bomb" if you're not prepared for it. The bottom line everyone has hit on is exactly right - the immediate tax implications of your mom paying your loans are minimal, but the long-term strategic decisions around repayment could impact hundreds of thousands of dollars. Get the big picture strategy right first, then optimize for taxes within that framework. Best of luck with your residency and loan decisions! You're asking the right questions at the right time.

This thread has been absolutely incredible - thank you everyone for such a thorough breakdown! As someone who's been lurking in this community for a while but never posted, I felt compelled to jump in because this hits close to home. I'm currently in my final year of pharmacy school with about $180k in federal loans, and my grandmother recently mentioned she might want to help pay some of them off. Like the original poster, I initially thought there might be some tax advantage for her, but this discussion has made it crystal clear that's not the case. What's really valuable is how everyone pivoted from the simple tax question to the much more important strategic considerations. I had never even heard of PSLF applying to healthcare professionals! I'm planning to work at a federally qualified health center after graduation, which I now realize might qualify me for loan forgiveness. The point about family helping with living expenses instead of direct loan payments is brilliant - it provides the same financial relief while preserving potential forgiveness benefits. I'm definitely going to research this more thoroughly before having any conversations with my grandmother about her offer to help. One question: does anyone know if clinical pharmacists working in hospitals or FQHCs typically qualify for PSLF, or is it mainly physicians? I want to make sure I understand my options before committing to any particular repayment strategy. This community's depth of knowledge is amazing - thank you for turning a simple tax question into a masterclass on student loan strategy!

Make sure you check if your state has any special provisions for joint filers with an unemployed spouse! Some states have additional credits or deductions that the federal return doesn't have. I live in Minnesota and found out we qualified for a special credit because of my wife's job loss that saved us almost $400 on our state return.

Great question! You're definitely on the right track thinking about filing jointly. In your situation with your husband being unemployed for part of the year, filing jointly is almost certainly going to be your best option. Here's what you need to know: You'll report both your full $68,000 income and his $31,000 from before the layoff on a joint return. The IRS doesn't penalize you for one spouse having no income for part of the year - they just look at your total household income. A few key things to remember: - If your husband received unemployment benefits, those are taxable income and need to be included - You'll get the higher married filing jointly standard deduction ($29,200 for 2025) - You may qualify for additional credits that aren't available when filing separately - Make sure to have his final W-2 from his previous employer and any 1099-G forms for unemployment The documentation is pretty straightforward - just gather all your normal tax documents plus any unemployment paperwork. In most cases like yours, filing jointly saves significantly more money than filing separately, but it's worth running the numbers both ways to be sure.

anybody know if u need to update all ur payment providers (paypal, venmo etc) if u switch from SSN to EIN? dealing with this headache right now

As someone who just went through this exact situation, I'd recommend sticking with your EIN. The identity protection benefit alone is worth it - you're not giving your SSN to every client you work with. The maiden name/married name issue is actually pretty straightforward. When you file your taxes, you'll use your married name on your 1040 form, but on Schedule C (where you report your business income), you'll list your business name as "Jane Smith DBA Jane Doe" (using your actual names obviously). The IRS sees this connection all the time. Since you already have the EIN set up and submitted one W-9 with it, I'd just continue using it consistently. It's actually more professional looking than an SSN on business forms. The only thing I'd suggest is making sure you update all your payment processors (PayPal, Stripe, etc.) to use the EIN instead of your SSN if you haven't already - learned that lesson the hard way! Don't overthink it - both are valid options, but the EIN gives you better privacy protection for your contracting work.

I'm dealing with a similar situation and after reading through all these suggestions, I think I'm going to try a combination approach. First, I'll check if I qualify for the free VITA program since my income might be under the threshold. If my situation is too complex for volunteers, I'll try one of those smaller local tax offices that Nia mentioned - seems like the sweet spot between quality and cost. For anyone else reading this thread, I'd also recommend calling around to get quotes BEFORE making appointments. I made that mistake last year and got stuck with a $300 bill when other places would have charged half that. Most places will give you a rough estimate over the phone if you describe your tax situation. Also keeping those AI-assisted options like taxr.ai in my back pocket as a potential middle-ground solution. Thanks everyone for sharing actual experiences instead of just telling OP to "do it yourself" - this is exactly the kind of practical advice people need!

Just wanted to share my experience from this tax season - I ended up going with a local enrolled agent after reading through all these suggestions. Found her through the IRS directory on their website (you can search by location). She charged $175 for my return which included rental property income, multiple 1099s, and some business expenses. What I really appreciated was that she explained everything she was doing and caught a few deductions I didn't even know existed. The peace of mind was worth every penny compared to those pop-up places that just rush through your paperwork. For anyone still looking, enrolled agents are specifically licensed by the IRS and tend to be more affordable than CPAs while still being very knowledgeable. Most charge $100-200 for moderately complex returns. Just search "enrolled agent near me" or use the IRS practitioner directory to find legitimate ones in your area.