If the kids receive SSI themselves, that can also impact who can claim them. Is it your sister-in-law who gets SSI or do the kids get it too?

This situation is unfortunately common and your concern for your sister-in-law is totally understandable. The bottom line is that your brother cannot legally claim the children as dependents without proper authorization, regardless of whether your sister-in-law files taxes or not. Since the children live with your sister-in-law full-time, she is the custodial parent under IRS rules. Even though she receives SSI and doesn't file a tax return, she still retains the legal right to claim the children. Your brother would need either Form 8332 signed by her OR very specific language in their divorce decree to claim them. What's particularly concerning is that if your brother claims the children without proper authorization, it could create problems for your sister-in-law down the road if she ever does need to file taxes or if the IRS audits either return. She should definitely not sign Form 8332 unless there's a fair arrangement that benefits her and the children too. I'd strongly recommend your sister-in-law consult with a tax professional or legal aid attorney who handles family law issues. Many provide free consultations for low-income individuals. She has rights here and shouldn't be pressured into giving them up just because someone else wants the tax benefits.

This is such helpful information! I've been doing Uber Eats deliveries on weekends and making about $600-800 a month, and I had no idea I needed to be paying quarterly taxes or keeping track of my mileage for deductions. Reading through all these responses has been eye-opening - especially about how payment apps like Venmo and Zelle are now required to report business transactions over $600. I'm definitely going to start keeping better records of my earnings and expenses. The advice about deducting car expenses and phone usage is something I never would have thought of. Does anyone know if I can deduct things like phone chargers or a phone mount that I bought specifically for delivery driving? Also, since I sometimes grab drinks or snacks during long delivery shifts, would any of that count as a business expense? I'm also curious about the liability insurance mentioned - is that something gig workers should really be considering? My regular car insurance probably doesn't cover commercial use, but I've never thought about what happens if I get in an accident while delivering food.

Great question! I went through this exact same situation last year with my pet sitting business. The key thing to understand is that the IRS considers you self-employed once you're regularly providing services for income, regardless of how informal it feels. Since you're making $950/month ($11,400 annually), you're definitely above the $400 self-employment threshold. Here's what you need to know: **Tax Forms You'll Need:** - Schedule C (Profit or Loss from Business) - this is where you report your dog walking income and expenses - Schedule SE (Self-Employment Tax) - for the 15.3% self-employment tax - Form 1040 - your regular tax return **Quarterly Estimated Taxes:** You should start making quarterly payments using Form 1040-ES. A good rule of thumb is to set aside 25-30% of your earnings for taxes (this covers both income tax and self-employment tax). **Deductible Business Expenses:** Track everything! Dog treats, leashes, waste bags, mileage to/from clients, pet insurance if you carry it, cleaning supplies, even a portion of your phone bill if you use it to coordinate with clients. **Record Keeping:** Those Zelle screenshots are a good start, but create a simple spreadsheet tracking dates, client names, services provided, and amounts received. The IRS loves detailed records if you're ever audited. Don't panic about not setting money aside yet - just start now! You can even set up a separate savings account and automatically transfer a percentage of each payment. Better late than never, and the IRS offers payment plans if needed.

One option nobody's mentioned - you could call the IRS Business & Specialty Tax Line at 800-829-4933 and explain the situation. They might be able to tell you if your form has already been processed (and rejected) or is still pending. That way you'd know for sure whether you need to submit a new one.

I went through this exact same situation two years ago and can confirm that being proactive is absolutely the right move. I made the e-signature mistake on my Form 2553 and immediately sent in a corrected version with wet signatures after realizing my error. Here's what I did that worked: I wrote "AMENDED FORM - CORRECTING E-SIGNATURE ERROR" in red ink at the top of the first page, included a brief cover letter explaining that I had inadvertently used electronic signatures not realizing they weren't permitted for Form 2553, and sent it via certified mail with return receipt requested. The IRS processed my corrected form without any issues, and I received my S-corp election acceptance letter about 8 weeks later. They never even sent me a rejection for the original e-signed version - I think it just got discarded during their initial processing. Don't wait around hoping they'll process the invalid form. The peace of mind of knowing you have a properly executed form submitted well before your deadline is worth way more than the cost of certified postage and a few minutes to prepare the correction.

I work at a brokerage firm (not as a tax pro, just operations) and see this confusion ALL THE TIME. Your advisor is flat-out wrong. Here's the simple version of what happens with an inherited IRA and RMDs: 1. Year of death: Beneficiaries must satisfy any remaining RMD the original owner hadn't taken. 2. Years after death: Beneficiaries follow the 10-year rule (completely empty the account within 10 years) unless they qualify for an exception. The only exception to taking the year-of-death RMD is if the original owner died BEFORE their required beginning date for RMDs (which is age 73 for people born between 1951-1959, and 75 for people born in 1960 or later). Tell your advisor to check IRS Notice 2022-53 if they don't believe you.

Quick practical tip - if you're close to year-end and worried about getting the RMD done in time, most custodians have a "year of death RMD" form or process specifically for this situation. I went through this with my dad's IRA last year. Call the financial institution where the IRA is held and specifically ask about the "deceased owner's RMD" process. Different from the regular inherited IRA withdrawal forms. Also, make sure the custodian establishes the inherited IRA correctly in your wife's name - it should say something like "John Smith (deceased) FBO Jane Smith, Beneficiary" - this proper titling is important for tax reporting purposes.

I'm an accountant and handle this situation all the time with clients. Here's a simple checklist for unused LLCs: Federal: If single-member (disregarded entity), no separate federal filing needed. If multi-member or elected corporate taxation, file returns showing zero activity. State Income Tax: Varies dramatically by state. Some require returns regardless of activity. State Franchise/Privilege Tax: Many states charge these regardless of income (CA's $800 minimum is notorious). Annual Reports: Often required by Secretary of State offices regardless of activity. Honestly, between state fees, franchise taxes, and filing requirements, an unused LLC usually costs more trouble than it's worth. I typically advise clients to dissolve unused entities and form a new one when they're actually ready to start the business.

As someone who went through this exact situation last year, I'd definitely recommend getting professional advice before making the dissolution decision. I almost dissolved my unused LLC thinking it was just costing me money, but my accountant pointed out that if I planned to start any business in the next few years, keeping it might actually save money in the long run. Formation fees, registered agent costs, and the time to set everything up again can add up. Plus, some states have "shelf life" restrictions where you can't reuse certain business names for a period after dissolution. If you're truly done with business plans, dissolve it. But if there's any chance you'll want to start something in the next 2-3 years, it might be worth keeping and just staying compliant with the minimal requirements.