One thing no one has mentioned - if you're gambling on sites that aren't legal in the US, reporting those winnings doesn't make the gambling itself legal. You still have to pay taxes on illegal income (IRS doesn't care where money comes from, they just want their cut), but reporting it doesn't protect you from other legal issues related to using those platforms. Most people don't run into problems, but just something to be aware of since you mentioned the platform isn't regulated in the US.

Great question! I went through something similar last year with about $8K in crypto gambling profits. Here's what I learned after consulting with a tax professional: The key thing is that you need to report the fair market value in USD at the time you received each winning, not when you eventually cash out. So if you won 0.5 ETH when ETH was $2,000, that's $1,000 of taxable gambling income even if ETH later drops to $1,500. For your situation with $13.5K in profits, you'll report this as "Other Income" on Form 1040 Schedule 1. Since you haven't converted to USD yet, you're not dealing with capital gains/losses on the crypto holdings themselves - that only comes into play when you sell. One practical tip: start documenting everything now while it's still relatively fresh in your memory. Create a spreadsheet with dates, amounts won in crypto, and the USD value at that time. You can use sites like CoinGecko or CoinMarketCap to get historical pricing data. The IRS expects you to use "reasonable methods" to determine fair market value, so using widely-accepted pricing sources should be fine. Also remember that if you have gambling losses, you can potentially deduct them against your winnings if you itemize deductions, but only up to the amount of your winnings.

I'm going through this exact same situation right now! My daughter turned 17 in January and I just finished my taxes only to discover I owe $1,200 instead of getting my usual refund. Like you, she's still completely dependent on me, still in high school, and costs just as much (if not more) than when she was 16. What really gets me is that I can still claim her as a dependent for the $500 credit, but somehow she's not "child" enough for the full Child Tax Credit anymore. The math doesn't add up when you're already stretched thin as a single parent. I'm definitely going to look into some of the resources others have mentioned here, especially the payment plan options. Thank you for posting this - it helps to know I'm not the only one blindsided by this arbitrary cutoff. The system really does feel broken when working parents are scrambling to pay unexpected tax bills while the wealthy find every loophole to avoid paying anything.

I'm so sorry you're dealing with this - the 17-year-old cutoff really is one of the most frustrating aspects of our tax system. As someone who works in tax preparation, I see this shock and anger from parents every single year, and it never gets easier to explain why Congress drew this arbitrary line. A few practical suggestions for your immediate situation: First, definitely look into the IRS payment plan options that others mentioned. You can set up an installment agreement online at IRS.gov, and for amounts under $50,000, it's usually pretty straightforward. The fees are much less painful than the penalties and interest that accumulate if you don't pay. Second, if your daughter has any part-time job income, make sure she files her own return - she'll likely get back everything that was withheld and that money stays in your household. Also, start tracking any education expenses now, because if she takes any college courses (dual enrollment, community college classes, etc.) while still in high school, you might qualify for education credits that can help offset some of this loss. The system definitely feels broken when you're working multiple jobs and still getting hit with surprise tax bills. Hang in there, and know that you're doing everything right - it's the tax code that's wrong here.

Just went through this exact situation last month! One thing that hasn't been mentioned yet is the importance of establishing a clear "placed in service" date for your rental property. The IRS considers your property to be placed in service as a rental when it's ready and available for rent, not necessarily when you get your first tenant. This matters because it affects when you can start claiming depreciation and certain expenses. I made the mistake of thinking I could backdate everything to when I first decided to rent it out, but my CPA corrected me - it's when the property is actually ready for rental use (repairs done, furnished if applicable, listed for rent, etc.). Also, keep meticulous records of any improvements or repairs you make during the conversion process. Capital improvements get added to your basis for depreciation calculations, while repairs can be deducted immediately. The distinction can save you thousands in taxes over time!

Great discussion here! I went through a similar conversion with my mountain cabin last year and learned a few hard lessons. One thing I'd add is to be really careful about the timing of when you start advertising the property for rent - this can impact your "placed in service" date that Lorenzo mentioned. I made the mistake of listing my property on Airbnb while I was still doing major renovations, thinking it would give me time to book out future dates. Even though I wasn't actually ready to host anyone, the IRS considered it "available for rent" from my listing date, which created some complications with my expense timing. Also, don't forget about your state tax implications! Some states have different rules for depreciation recapture or rental income taxation. In Colorado, I discovered there were additional filing requirements I wasn't aware of. Definitely worth checking with a local tax professional who knows your state's specific rules. The mortgage lender piece is crucial too - I was fortunate that my credit union was flexible, but they did require me to provide rental income projections and change my loan classification. Better to be upfront than risk default issues later!

For what it's worth, I had this exact situation last year and it turned out my company had switched payroll providers mid-year. That's why they issued two separate W-2s. One was from January-June with the old provider, and one was from July-December with the new one. Is it possible your company did something similar?

I went through something very similar recently! In my case, the second W-2 with only Box 12A filled in was reporting my employer's HSA contributions that were made throughout the year. The code in Box 12A was "W" which specifically indicates employer HSA contributions. What helped me understand it was looking at the actual letter code next to the dollar amount in Box 12A - that tells you exactly what type of contribution or benefit it represents. Common codes are D (401k elective deferrals), W (employer HSA contributions), C (group term life insurance), etc. You definitely need to enter both W-2s when filing. I use TurboTax and it has a simple "Add another W-2" option that walks you through entering multiple forms from the same employer. The software automatically handles how to report everything correctly so you don't have to worry about double-counting anything. Just make sure when you're entering the second W-2 that you only fill in the boxes that actually have amounts - don't try to enter zeros in the empty boxes.

Has anyone considered the Alternative Minimum Tax implications here? I'm not a tax expert, but I think large capital gains can sometimes trigger AMT, which might change the math on this decision.

One additional consideration that hasn't been mentioned yet is the Net Investment Income Tax (NIIT). If your modified adjusted gross income exceeds $200k (single) or $250k (married filing jointly), you'll owe an additional 3.8% tax on investment income, including capital gains. Realizing $675k in gains could potentially push you into NIIT territory if you weren't already there, which would add another layer to your tax calculation. This applies regardless of which state you're in since it's a federal tax. Also, consider whether you might benefit from tax-loss harvesting in your portfolio before the move. If you have any unrealized losses, you could realize those alongside some of your gains to reduce the overall tax impact while still achieving your goal of avoiding Georgia's state tax on the net gains. The timing strategy could work well, but make sure you're accounting for all the federal tax implications, not just the state tax savings.