It sounds more like a tip than a gift. Your husband performed a service for Mrs Someone and received a payment from her because of that service.

"Section 102 of the tax code instructs us that “Gross income does not include the value of property acquired by gift, bequest, devise or inheritance.” It helpfully clarifies that this exception to the income tax does not apply to “any amount transferred by or for an employer to, or for the benefit of, an employee.”

https://www.palisadeshudson.com/2013/09/if-gifts-are-not-income-why-tax-gratuities/

0% trumps everything. Open the account, transfer your high interest debt, cut up the card.

On $5380 of debt at 25%, the first $113/mo is just interest. So if you pay $500, your debt goes down by $387. If it’s at 0% and you pay $500, your debt goes down the full $500. Which sounds better to you?

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Paying off the AMEX and CSP is #1 for me, will most likely do this. Cash flow is important to me as well as I don't want to be left with $0 each month. Thank you for your comment!

Almost posted with my main account, oops, but I've been getting a lot of CC pre-approvals coming in the mail with 0% balance transfers. I didn't want to open another card but a good option to think about. Def have to cut spending down in order to max my monthly take home towards the debt. Also true about the loan, still considering this as my primary option, thank you for your advice!

Put it in yourself and increase your skill set to get a higher income

529s are great. People think of them as being for college only, but they can be used for so much more than that. Any qualifying program including training in a trade. And it also can pay for qualifying housing while studying and tools needed to study... like a laptop. Or if the kid goes into a trade, it can pay for all the tools they'll need to get started.

We also separately have a smaller irrevocable trust so that he can use it to have a downpayment on a home or some other major milestone when he's 30. They can get up to 15k a year avoiding gift taxes and exempt from estate tax.

Can you ask Mrs. Someone directly? Did your husband ever complete a W-9 form for Mrs. Someone?

You're applying for an EIN number?

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

EDIT: I guess you're trying to register for an account at BSO: https://www.ssa.gov/bso/bsowelcome.htm

It does seem that they just changed their policies to require the mailed info, so perhaps nobody yet has experience solving this.

Yeah, this process was frustrating the 1st time I went through it. But after you've done it once, it's pretty straightforward. Do you have a friend who could talk you through the process?

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To add to this great answer, if I was getting a CFP I’d let them recommend a tax preparer rather than find one on my own. Even if they aren’t a CPA they may still offer tax services or be affiliated with someone who does.

Because all of your earnings in Roth IRA are 100% tax free. This can and should be significant since you are starting at age 28.

If you maxed out Roth IRA w/ $6500 annually from age 28 to age 67, you would have $3,000,000 tax free at age 67 (at S&P 500 historical 10% annual return)

Unless it's included on their W2 or 1099 I would treat it as a gift.

Also when you say "gave us" a check if that is accurate and you are not an employee it further enforces this is a gift and not wages/bonus.

What is the main wage earner has over 40 quarters of wages? Will the spouse qualify for Medicare? And SS?

You can (and probably) should do a will for the house at least. But you can also set the Humane Society as the beneficiary/payable on death on your bank accounts, 401k, etc. They will get the money regardless of the will.

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Got it, so contribute $5950 more for total $6k personal contributions but pay taxes on $101.66.

You invest it in what you think will get returns, but based on evidence. Look at the data given to you about your options.

Or look for something called a target date fund and pick that. It will focus investments for you based on your target date for retirement (earlier dates being less risky investments farther away dates being more risky). All investments have risks. The 457b plan is special because it allows you to withdrawal without penalty after you leave employment, rather than after age 59 1/2, like 401ks and other retirement plans. So essentially it could be your early retirement fund.

Delete post, replace "Tesla" with "electric vehicle" and post it again.

Or give the moderators an hour or three to review and they'll probably approve it.

I feel that for sure. I took a major hit about 6 years ago because I had to take money out for a down payment on a house. Seeing it slowly crawl back up and even stall makes it seem like a terrible financial decision, but knowing how housing prices have gone in that time on the west coast and the major money it has saved us in monthly payment makes it feel so much better. Sometimes for a better view we need to back up and take in more. Sounds like you’re already doing that, and that you’re in a decent financial position.

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The calculator should have an option for that. I'm hoping your plan is after tax in-plan Roth conversion. If thats the case and the calculator you are using doesn't have that, just treat it the same as a Roth IRA.

Was the question about your finances in relation to the Tesla? If you were asking whether you should get a Y or an S, that’s not a personal finance question, but if you are asking whether you should be leasing or buying it, that is a personal finance question.

Unless you get court appointments for it, you can't. They will be an adult. Adults get to make their own choices, even if wrong. Trying to take it and not turn it over could be seen as a variation of theft. Similar to how failing to turn over a UTMA account can get you in trouble.