How should my boyfriend and I handle taxes if his income goes to my account?

General
1

Hi all,

I’m currently a student in NC, though I’m still technically a resident of NY with a NY driver’s license. My boyfriend moved here with me, and he recently started working. Since he’s not great with finances, he sends his paycheck to my account, and we use it for bills, groceries, and school expenses. I’ve also used my savings for school. I don’t have much income myself this year since I’m studying full-time.

Will this setup cause issues when we file taxes separately? We’re not married and will be filing individually. I just want to make sure there won’t be any complications from him using my account for his earnings. I’ll start working full-time again in May 2025, and he’s graduating soon, so his job situation will change soon too.

Any advice is appreciated. Thanks!

2

@Qi
Yep, it’s all under his name and Social. Thank you for clearing that up—it was something that randomly worried me.

3

Mitchelle said:
@Qi
Yep, it’s all under his name and Social. Thank you for clearing that up—it was something that randomly worried me.

Then it’s definitely his income for tax purposes. Just be cautious—don’t want to see you getting into any kind of trouble down the line.

4

Since you’re not married, you’ll each file separately as single. The bank transfers have no impact on your taxes. Once the income is earned and taxed, how you spend or transfer it doesn’t really affect tax filings.

5

@Fin
Got it, thank you!

6

The IRS doesn’t care about your bank account details; they only care about the income you make.

7

You don’t report where the money sits in a bank account; you only report income. Any interest the account earns is what you report as your income.

8

Since you’re not married, you each handle your own tax return based on what you earned. Taxes go by what you made, not by where the money ends up.

Does he get a regular paycheck? Or is it cash/checks from a side job? If he has an employer, he should get a W2 detailing his earnings. If it’s freelance or cash, he needs to track that himself so he can report it properly. Also, if your account has interest, that interest goes on your taxes as income, since the account is in your name.

9

@Cedar
Any interest that builds up in your account would be reported by you as interest income, not “other income.”

10

Vance said:
@Cedar
Any interest that builds up in your account would be reported by you as interest income, not “other income.”

Yes, we’ve got some interest since it’s a high-yield savings account. He couldn’t open one himself because of credit issues. Thanks for the info!

11

@Mitchelle
FYI, I don’t think bad credit should prevent opening a high-yield savings account.

12

Gale said:
@Mitchelle
FYI, I don’t think bad credit should prevent opening a high-yield savings account.

He’s had some issues with banks due to past debt and collections, so he hasn’t been able to get approved. He’s working on it now though.

13

Why haven’t you switched your driver’s license to North Carolina? Have you moved from NY for good, or is this temporary? Just keep in mind you might have to file a state tax return for both states.

14

Jules said:
Why haven’t you switched your driver’s license to North Carolina? Have you moved from NY for good, or is this temporary? Just keep in mind you might have to file a state tax return for both states.

We only moved in January, and getting a license here is tough! People line up at 4 a.m. and I don’t have the energy for that, especially since we’re not sure we’re staying long-term.

15

@Mitchelle
Some states require a new driver’s license within 30 days of moving, so it’s worth checking out.

16

Jules said:
@Mitchelle
Some states require a new driver’s license within 30 days of moving, so it’s worth checking out.

If you’re a student, NC might not require you to get a new license since it’s a temporary move.

17

Jules said:
@Mitchelle
Some states require a new driver’s license within 30 days of moving, so it’s worth checking out.

Yeah, NC does say you need one, but it’s nearly impossible to get an appointment at the DMV. Plus, we may be going back to NY, so I’m just holding off for now.

18

This sounds like money laundering.

19

PixelPioneer said:
This sounds like money laundering.

It’s definitely not.

20

PixelPioneer said:
This sounds like money laundering.

Completely off base.