I was wondering about that. I can't see the IRS auditing her, either. However if she were to take that 3500 bonus off her income wouldn't the IRS immediately flag the discrepancy between her W2 and what she reported as income. I mean, that has to be automated by now!

One time several years (when I still did my taxes completely by hand) ago I mistakenly flipped two digits when I adding my wife's and my W2 taxable income. Within about 1 month I got a notification from the IRS notifying me of the discrepancy along with a check for the additional refund that resulted from my error. I'm confident that the IRS would handle her return similarly.

These answers Crack me up. Here's the thing, you aren't going to sign her tax form as a paid preparer (unless you are a fucking idiot). There's nothing the IRS even cares to do to you. She is responsible for her taxes and the IRs will address the issue with her.

My advice is to let her do her own taxes. I expect they are simple enough. Should she somehow get you involved and the IRS contacts you just be completely honest. Heck, you can even refer them to this post.

One last thing with respect that her comment that her "work knows more than you do". That is most likely true AND THAT IS WHY THEY INCLUDED THE BONUS AS TAXABLE INCOME ON HER W2.

Are you going to a college/university in the US? Can't you even develop FWB relationships with other students?