Just wanted to add some clarification that might help with your planning - the OASDI tax is actually deducted from your paychecks throughout the year by your employers, so you don't need to calculate or pay it separately when you file your taxes. Each employer withholds 6.2% of your wages up to the annual limit ($168,000 for 2024, $175,800 for 2025 as someone mentioned). The key thing to remember is that if you change jobs during the year or have multiple employers simultaneously, each employer treats your OASDI withholding independently. So if you made $100,000 at Job A and $80,000 at Job B, you'd have OASDI withheld on the full $180,000 even though you should only pay it on $168,000. That's when you'd claim the excess back on your tax return. Your spouse's income has absolutely no impact on your individual OASDI calculation - you each get your own $168,000 limit regardless of your combined household income or filing status.

I just went through this exact situation last year and can confirm what others have said - the OASDI limits are completely individual, not combined for married couples. My husband and I both earn over the $168,000 limit, so we each paid the maximum $10,453.20 in Social Security tax. One thing I learned the hard way is to keep track of your year-to-date OASDI withholding if you switch jobs mid-year. I changed employers in August and my new company started withholding OASDI from zero again, even though I had already hit the limit at my previous job. I ended up overpaying by about $800 and had to claim it back as a credit on our tax return. The good news is that tax software usually catches this automatically when you enter multiple W-2 forms, but it's worth double-checking the math yourself. Your filing status (joint vs separate) has zero impact on OASDI calculations - it's purely based on individual earnings.

Has anyone actually been audited by the IRS over a family loan with the wrong interest rate? I'm loaning my sister $30k and don't want to deal with all this AFR stuff but also don't want to get in trouble.

I went through this exact situation last year when I loaned my daughter $50,000 for her business. Here's what I learned from my tax attorney: For a 6-month loan, you definitely need the short-term AFR rate. Since you're getting paid back in one lump sum at the end, use the semi-annual compounding rate from the IRS Revenue Ruling published for the month you make the loan. The key thing everyone misses is that you MUST actually charge and collect the interest, not just put it on paper. I made the mistake of "forgiving" the interest at the end, and my CPA told me that could still trigger gift tax issues since I was essentially giving her the interest amount. Also, make sure your loan agreement includes a specific maturity date, not just "about 6 months." The IRS wants to see definite terms. I used a simple promissory note template but had it notarized just to be extra safe. One more tip: if your brother can't pay the full amount back at 6 months, don't just verbally extend it. You'll need to formally modify the loan agreement or it could look like you're just gifting money with extra steps.

I'm going through this exact same situation right now! Filed my return in February, been using the same checking account with my local credit union for over 7 years without any issues, and just found out yesterday that my refund was rejected for direct deposit. The IRS representative told me they're sending a paper check that should arrive in 7-10 business days and mentioned the CP53 code. She confirmed what everyone else is saying here - this is happening way more frequently this year due to enhanced fraud prevention measures they implemented. It's so frustrating because I triple-checked all my banking information when filing and there's absolutely nothing wrong with my account. When I called my credit union, they had no record of receiving or rejecting any deposit from the IRS, which makes the whole situation even more confusing. At least it's somewhat comforting to know this is a widespread issue and not something I personally messed up. Really hoping my check arrives within the timeframe they quoted! Thanks for posting about this - it's helpful to see I'm definitely not alone in dealing with this headache.

I'm in the exact same boat! Filed in February, been using the same Chase account for 9 years, and just found out yesterday my refund was rejected for direct deposit. The IRS agent said they're mailing a check that should arrive in 7-10 business days and mentioned the CP53 code. She confirmed this is happening to WAY more taxpayers this year because of new fraud prevention systems they put in place. It's incredibly frustrating because my banking info was 100% correct and I've never had issues before. When I called Chase, they had zero record of receiving or rejecting any IRS deposit, which just adds to the confusion. At least it's reassuring to see so many others experiencing this - makes it clear this is a systemic issue with the IRS's overly cautious new systems rather than something we did wrong. Really hoping my check actually arrives within the timeframe they promised. Thanks for sharing your experience - definitely helps to know we're not alone in this mess!

One thing no one's mentioned yet - if you guys are getting married next summer, would it be before or after December 31st? Because your tax filing status is determined by your marital status on the last day of the tax year. If you're getting married before the end of 2025, then you'd be filing as married for that whole year anyway, and this becomes a non-issue since you'd likely file jointly and claim the child together.

Great advice from everyone here! I want to add something important that hasn't been fully addressed - the "support test" calculation can be trickier than it seems at first glance. When determining if your fiancé provides more than 50% of your daughter's support, you need to include ALL sources of support, not just what you and your fiancé provide. This includes things like: - Any child support from your daughter's biological father - Government benefits (SNAP, WIC, Medicaid, etc.) - Support from grandparents or other relatives - Even the fair rental value if your daughter has her own room The IRS has a specific worksheet (Publication 501) that breaks down exactly how to calculate total support. I've seen people get tripped up because they only counted the money they and their partner spent, forgetting about other sources of support that might push the total over the threshold. Also, keep detailed records throughout the year - receipts, bank statements, etc. The IRS can ask for documentation if they audit dependent claims, and "he pays for most things" won't be enough if you can't prove the actual dollar amounts.

This is such a helpful thread! I'm in a similar situation with my podcast Patreon - made about $900 last year and was wondering the same thing about reporting requirements. One thing I wanted to add that I learned from my accountant: even though you need to report all income regardless of amount, there's actually a threshold for when you need to file Schedule SE (self-employment tax). If your net profit from self-employment is less than $400, you don't have to pay self-employment tax on it, though you still report the income on Schedule C. So for someone like you who made $1,350, if your business expenses bring your net profit below $400, you'd still report the income but wouldn't owe the additional 15.3% self-employment tax. That could be significant savings! Definitely worth tracking those software subscriptions and equipment purchases you mentioned.

This thread has been incredibly helpful! I'm a small YouTube creator who also just started a Patreon last month, and I was completely clueless about the tax implications. Reading through everyone's experiences has been eye-opening. One question I haven't seen addressed yet: what about international supporters? I have patrons from Canada, the UK, and a few other countries. Does it matter where the money is coming from for tax purposes, or is it all just treated the same as domestic income? Also, for anyone just starting out like me, I highly recommend setting up that separate business bank account right away like others mentioned. I opened one last week after reading this thread and it's already making my record-keeping so much cleaner. I wish I had done it from day one! Thanks to everyone who shared their knowledge and experiences - you probably saved me from making some costly mistakes!