Welcome to both of you! This really has become an incredibly valuable thread. To answer your question about property owner receptiveness - in my experience, professional property management companies are usually very open to discussing these details since they've dealt with similar arrangements before. Smaller individual landlords might need more education, but most appreciate that you're thinking things through properly rather than just jumping in blindly. I'd frame it as "I want to make sure we both understand our obligations so this arrangement works well for everyone" rather than coming across as overly demanding. Any landlord who gets annoyed by reasonable questions about tax implications and liability probably isn't someone you want to work with anyway. Regarding the home office deduction - I decided it wasn't worth the risk in my situation since I couldn't demonstrate truly exclusive use. The IRS audits home office deductions pretty aggressively, and when you're living in the same building you manage, it's hard to prove a space is used ONLY for business. I focused on other legitimate deductions like vehicle expenses for off-site errands and portion of cell phone costs. One more tip for the original poster - consider asking for a trial period in your contract, maybe 90 days, where either party can terminate with reasonable notice. This protects both you and the property owner if the arrangement doesn't work out as expected. Better to discover incompatibility early than be locked into a year-long agreement that becomes problematic!

This has been an incredibly informative discussion! As someone new to this community, I really appreciate how thorough everyone has been in sharing their experiences. I wanted to add one more perspective that might be helpful for anyone considering this type of arrangement. Before you sign anything, it's worth checking if your state has any specific laws about resident managers or on-site property management. Some states have additional requirements or protections that could affect how these arrangements are structured. Also, if you're currently receiving any government benefits (like SNAP, Medicaid, or housing assistance), the additional income from the rent reduction could potentially affect your eligibility. It's worth checking with those programs beforehand to understand how reporting this income might impact your benefits. The tax implications are definitely complex, but don't let that scare you away from what could be a good opportunity. Just make sure you factor in all the costs (taxes, potential insurance, time commitment) when evaluating whether the financial benefit is worth it. And definitely keep meticulous records from day one - it will save you headaches later! Thanks to everyone who shared their real-world experiences. This thread should be a great resource for anyone facing a similar decision!

I verified in person on February 17th, 2024, and saw my "as of" date change on February 23rd. Then on March 2nd, I got all my transcript codes including the 846 refund issued code! The deposit hit my account on March 7th exactly as scheduled. In-person verification definitely speeds things up. Just hang tight - you're on the right track!

That "as of" date change is definitely a positive sign, especially after your in-person verification! I've been tracking patterns in this community for a while, and typically when the "as of" date updates following verification, it means your return has been released from the verification hold and is now actively being processed. For amended returns, you'll usually see the next update within 7-14 days - look for transaction codes like 971 (notice issued) or 977 (amended return processing). Keep checking throughout the day since updates can happen anytime, not just overnight. The fact that yours moved from 3/15 to 4/22 suggests they're working on your case right now. Stay patient but optimistic! 🤞

I went through this exact situation two years ago and wanted to share a strategy that really helped streamline the process. After hitting the SS cap at my previous job in September and starting a new position in October, I created what I called a "SS overwithholding packet" for my new employer's HR team. This included: 1. My final paystub from the previous employer clearly highlighting the YTD SS wages exceeding $160,200 2. A one-page explanation of the Social Security cap and why overwithholding occurs with mid-year job changes 3. The results from the IRS Tax Withholding Estimator showing my recommended W-4 settings 4. A simple calculation showing exactly how much SS tax would be overwitheld each pay period Having everything organized in one packet made the conversation with HR incredibly smooth. They appreciated that I came prepared with solutions rather than just explaining the problem. My HR rep even mentioned they kept a copy of my explanation to help future employees in similar situations. One thing I'd emphasize - make sure your calculations account for the exact number of remaining pay periods, not just "the rest of the year." I initially miscalculated because I forgot about the holiday pay schedule affecting when my last paycheck would actually be issued. The overwithholding still happens (there's no way around that), but having everything properly documented and adjusted made the financial impact much more manageable. Plus, I felt confident that I'd get the maximum refund at tax time without any complications.

I'm currently in this exact situation and this thread has been a goldmine of practical advice! I hit the SS cap at my previous employer in mid-October and just started a new job yesterday. Already seeing those SS deductions on my first paystub. After reading through all these experiences, I'm planning to take a hybrid approach combining several of the strategies mentioned here: 1. **Documentation first**: Going to create that "SS overwithholding packet" that @Mateo Lopez suggested - brilliant idea to package everything professionally for HR 2. **IRS Withholding Estimator**: Multiple people have confirmed this is the gold standard, so I'll run this over the weekend with complete data from both employers 3. **Quick action**: The point about that $800 in just three weeks really hit home - I need to get this fixed immediately rather than procrastinating One question for the group: Has anyone dealt with this when their new employer has a waiting period before you can make W-4 changes? My company mentioned there might be a 30-day waiting period for payroll changes, which would be frustrating given how quickly the overwithholding adds up. Also want to echo what others have said about this thread being an incredible resource. The combination of technical tax knowledge and real-world implementation advice has made what seemed like an impossible situation feel completely manageable. Thank you to everyone who shared their experiences! For anyone else just starting to deal with this - you're not alone, and based on all these success stories, there's definitely a clear path to resolving it.

As someone who navigated this exact situation five years ago, I want to emphasize something crucial that might ease your worries: your dedication to protecting your children financially is admirable and completely achievable even after marriage. Here's what I wish I'd known earlier - the Child Tax Credit follows the child, not your marital status. Since you're clearly providing more than half their support (paying 80% of household expenses plus all child-related costs), you'll maintain eligibility regardless of how you file. The real question is optimizing your filing strategy. I'd recommend creating a simple spreadsheet tracking all child-related expenses for a few months before your wedding - this documentation will be invaluable for tax purposes and gives you concrete numbers to work with when consulting a tax professional. One strategy that worked well for me was keeping our first year of marriage simple by filing separately, which maintained my established tax patterns while we figured out our long-term approach. This gave us time to understand our combined financial picture without disrupting the college savings routine I'd established. The fact that you're already putting the Child Tax Credit directly into college accounts shows you're thinking long-term. Consider meeting with both a CPA and a financial aid counselor before your wedding - the small upfront cost for professional guidance could save you thousands over the years and help you make informed decisions that protect your children's financial future. Your children are lucky to have someone so thoughtful about their financial security. Getting married doesn't have to disrupt that - it just requires some strategic planning.

I'm a tax professional who works with many blended families, and I want to address a few key points that haven't been fully covered yet. First, regarding your Head of Household status - you're right to be concerned about losing it, as it does provide significant tax advantages. However, the loss might not be as devastating as you think. When married filing separately, you can still claim your children as dependents and receive the Child Tax Credit, since you clearly meet the support test. Here's something important: consider the timing of your wedding within the tax year. If you marry on December 31st, you're considered married for the entire tax year. But if you marry on January 1st, you can still file as Head of Household for the previous year. This could be worth hundreds or even thousands in tax savings. Also, I'd strongly recommend running a tax projection now, before your wedding, using both your current situation and various married scenarios. This will give you concrete numbers to work with rather than speculation. Many tax software programs allow you to run "what-if" scenarios, or you can work with a tax professional to model different outcomes. One final point about your college savings strategy - since you're keeping finances separate and your fiancé isn't contributing to child expenses, make sure any 529 plans remain in your name only. This maintains your control over the funds and could help with financial aid calculations when your children apply for college. Your instinct to plan ahead is exactly right. With proper preparation, you can absolutely protect your children's financial interests while enjoying the benefits of marriage.

Just want to add - KEEP GOOD RECORDS of everything! Create a simple spreadsheet tracking: - Exact dates/times you babysit - All payments received - Any expenses related to childcare - Portion of your home used for childcare - Photos of areas used for childcare - Receipts for anything you buy for childcare The IRS loves to audit self-employed people with cash businesses, and childcare is definitely on their radar. Good records are your best defense if you ever get questioned!

Great advice from everyone here! I'm a tax preparer and just wanted to add a few quick clarifications: 1. Yes, you absolutely need to report this income - the $400 threshold for self-employment tax applies to you. 2. For home deductions, you can use either the simplified method ($5 per square foot up to 300 sq ft) or actual expense method. Given that you're only babysitting part-time, the simplified method might be easier. 3. Document everything NOW - create that spreadsheet Oliver mentioned and go back through your Zelle history to reconstruct the dates/amounts. The IRS allows reasonable reconstruction of records. 4. Consider setting aside about 25-30% of future payments for taxes (income tax + self-employment tax). This will help avoid a surprise bill next year. Your sister doesn't need to do anything on her end since this is a personal expense for her, not a business deduction. You're handling this correctly by taking full responsibility for reporting the income yourself!