I just want to emphasize something that's been touched on but bears repeating - you absolutely MUST report this income regardless of the amount or payment method. I've seen too many students get into trouble thinking that cash apps "don't count" or that small amounts fly under the radar. The IRS has significantly ramped up their tracking of digital payments over the past few years. They have access to payment app data even when 1099-K forms aren't issued, and their matching systems are getting more sophisticated every year. For your specific situation, here's what I'd do: - Set up a simple tracking system NOW for all payments received - Open a separate bank account for this income if possible (makes everything cleaner) - Set aside 30% of each payment for taxes immediately - Plan to file your own return using Schedule C with "Digital Content Creation" as the business type The privacy concern is totally valid, and filing independently is absolutely the right approach. Your parents can still claim you as a dependent, and you maintain complete control over your business information. One last tip: consider this an opportunity to learn about taxes and financial independence. These skills will serve you well beyond college, and handling your own taxes is an important adulting milestone anyway!

I've been helping students navigate these exact tax situations for years, and I want to address the most important points clearly: **You MUST report this income** - Period. The $600 threshold only determines when payment apps send 1099-K forms, but you're legally required to report all income regardless of amount or source. **Privacy solution**: File your own complete tax return including both your W-2 and Schedule C (self-employment) income. Use "Digital Content Creation" as your business category - it's legitimate and appropriately vague. Check the box indicating someone else can claim you as a dependent so your parents keep their deduction while you maintain complete privacy. **Immediate action items**: - Start tracking every payment NOW (date, amount, platform) - Set aside 30% of each payment for taxes (you'll owe both income tax and self-employment tax) - Consider opening a separate account for this income - Track business expenses (phone, internet, equipment, props) **The good news**: You can deduct legitimate business expenses against this income, and filing independently doesn't affect your parents' ability to claim you as a dependent or education credits. Don't let anxiety about taxes keep you from being compliant. The IRS doesn't care what you're selling - they just want their share. Handle this properly now and you'll avoid much bigger problems later.

Thank you all for the helpful responses! I think I'm going to go with the de minimis approach since all my purchases are under $2,500 and it seems simpler than tracking depreciation. I'll definitely create that accounting policy document today. One final question though - if I buy something that costs more than $2,500 later this year, can I still depreciate that specific item even if I used de minimis for my other purchases? Or do I have to be consistent with one approach for all assets?

Great thread! Just wanted to add one more tip that helped me when I was starting out as self-employed - consider the timing of your purchases if you're expecting your income to vary significantly year to year. If you're in a lower tax bracket this year but expect higher income next year, immediate deductions (like de minimis) give you the tax benefit now when it might be worth less. But if you expect to be in a higher bracket in future years, depreciation spreads the deduction over time when it might be more valuable. For most new self-employed folks with the amounts you mentioned, de minimis is still probably the way to go for simplicity, but it's worth considering your income trajectory. Also, don't forget that if you're using part of your home as an office, you might be able to claim the home office deduction for that space too!

I went through this exact same situation when I got married two years ago! The panic is so real when you're used to seeing federal tax deducted from every paycheck as a single filer. Here's what I learned: the married filing jointly withholding system is fundamentally different from single filing. When you select MFJ on your W-4, the system doesn't just change a few numbers - it completely changes how your withholding is calculated. Your individual income is now being evaluated against the much higher MFJ standard deduction ($29,200 for 2025) and different tax bracket thresholds. Since your wife earns about twice what you do, her paychecks are likely being withheld at a rate designed to cover BOTH of your tax liabilities as a married couple. This is actually how it's supposed to work - the system treats you as one tax unit pooling resources, not two separate taxpayers. Before you make any more W-4 changes, please use the IRS Tax Withholding Estimator on IRS.gov. Input both incomes, current withholding amounts, and expected deductions. I bet you'll find you're actually on track for the year, possibly even for a small refund like I was. The key mental shift is understanding that your zero federal withholding doesn't mean something's broken - it likely means your individual income doesn't generate enough tax liability when viewed through the MFJ lens, while your wife's higher withholding covers your combined household tax bill. Don't let the anxiety drive you to make unnecessary changes until you know if there's actually a problem!

I completely understand your panic - this exact same thing happened to me when I got married last year! The married filing jointly withholding system is honestly one of the most confusing things about taxes that nobody really prepares you for as newlyweds. What's happening is actually very normal and likely correct. When you select "married filing jointly" on your W-4, the withholding calculations change completely. Your individual income is now being evaluated against the much higher MFJ standard deduction (around $29,200 for 2025) and different tax brackets. Since your wife earns about twice what you do, your individual salary probably doesn't generate enough tax liability to require federal withholding when run through these MFJ tables. Here's the key insight that finally clicked for me: your wife's paychecks aren't just covering her taxes - they're likely being withheld at a rate designed to cover BOTH of your tax liabilities as a married couple. The system treats you as one combined tax unit now, not two separate taxpayers. Before you make any more changes or stress about owing money, please use the IRS Tax Withholding Estimator on IRS.gov. Input both of your incomes, current withholding amounts, and expected deductions. When I finally did this, I discovered we were actually going to get a small refund despite my zero federal withholding! The system was working exactly as intended - I just didn't understand it. Don't let the anxiety drive you to make unnecessary adjustments until you know if there's actually a problem. In most cases like yours, everything is working correctly even though it feels completely wrong when you're used to seeing federal tax come out of every check.

This is actually really common during tax season, especially with FAFSA applications! The timing makes perfect sense - you mentioned applying for financial aid recently, and schools typically request these verification letters from the IRS to confirm students haven't filed yet (which affects aid eligibility). The letter being dated February 16th and coming from Memphis is totally normal - that's one of their main processing centers. The "no record of processed return" just means as of that specific date, they hadn't finished processing your return yet, which can take weeks even after you file. Don't stress about identity theft - if someone was trying to mess with your taxes, they'd be filing fraudulent returns, not requesting verification that you DIDN't file. This is definitely just standard FAFSA paperwork. You can always call that 800 number if you want peace of mind, but sounds like everything's working as it should!

Just to add some reassurance - I work in financial aid and see these letters ALL the time during FAFSA season. Schools automatically request verification of non-filing for students who haven't submitted tax info yet, and the IRS sends these letters as standard procedure. The Memphis processing center handles tons of these requests daily. The fact that you got this letter actually means the system is working correctly - your school requested verification, the IRS checked their records as of Feb 16th, didn't see a processed return yet (totally normal timing), and sent you this notification. It's basically just paperwork trail documentation. If you already filed your 2024 return, just submit that to your financial aid office instead. If you haven't filed yet, you might be able to use this letter for your FAFSA depending on your school's requirements. Either way, you're all good!

Anyone know if I can contribute to an HSA for 2024 if I setup my qualified high-deductible health plan in December 2024? Or do I need to have the HDHP for the full year to qualify?

Great question! I see you've gotten some excellent explanations already, but let me add one practical tip that might help clarify things for you. When you file your taxes, you'll report your $5,800 HSA contribution on Form 8889, and this creates what's called an "above-the-line" deduction on Line 13 of Form 1040. This is actually better than itemized deductions because it reduces your Adjusted Gross Income (AGI) regardless of whether you take the standard deduction or itemize. To put it simply: if you're in the 22% tax bracket, your $5,800 contribution will save you roughly $1,276 in federal taxes ($5,800 × 0.22). However, the exact savings depend on your total income and which tax brackets that income falls into. One thing to double-check: make sure your $5,800 doesn't exceed the 2024 HSA contribution limits. For individual coverage it's $4,150, and for family coverage it's $8,300 (plus $1,000 catch-up if you're 55+). If you contributed more than your limit, you'll need to withdraw the excess to avoid penalties. The key takeaway is that HSA contributions are one of the best tax advantages available - you get the deduction now, the money grows tax-free, and qualified withdrawals are tax-free too. It's truly "triple tax-advantaged.