22 Has anyone here actually been audited over the self-employed health insurance deduction? I'm worried about claiming it wrong and getting in trouble.

I went through this same situation last year and can confirm what others have said - you can absolutely deduct the portion you pay out of pocket after the premium tax credit. The key is keeping good records. What helped me was creating a simple spreadsheet tracking my monthly premiums, the advance premium tax credit amounts, and what I actually paid each month. When tax time came, I had clear documentation showing exactly what portion was deductible. One additional tip - if you have any months where you didn't receive the advance credit (maybe due to income changes), those full premium amounts are deductible for those months. The IRS allows you to deduct any premiums you actually paid, regardless of whether you were eligible for credits you didn't receive. Make sure to reconcile everything on Form 8962 when you file - this ensures your actual income aligns with the premium tax credit you received throughout the year.

I've been dealing with this exact same TurboTax suffix problem and wanted to share what finally worked for me after trying several of the suggestions mentioned here. I first tried "NONE" which worked initially, but then TurboTax updated and started rejecting it. What ultimately solved it was using a single underscore "_" character. It satisfied their validation requirements without adding anything meaningful to my actual tax forms, and my return was processed by the IRS without any issues. The underscore seems to work consistently because it's recognized by most form validation systems as a neutral placeholder character, similar to how dashes and periods work. If you've tried the other suggestions and they're not working with your version of TurboTax, give the underscore a shot. It's really frustrating that TurboTax makes this field mandatory when the IRS doesn't actually require suffix information. Hopefully they'll fix this user experience issue in future versions, but until then these workarounds are unfortunately necessary.

I just went through this same nightmare with TurboTax yesterday! After reading through all these suggestions, I tried the underscore "_" approach that @Liam Fitzgerald mentioned and it worked perfectly. My return was accepted by the IRS this morning with no issues. What's really frustrating is that I wasted hours trying different approaches before finding this thread. TurboTax's customer support was completely unhelpful - they just kept telling me the field was "required by law" which is obviously not true since the IRS doesn't actually require suffix information. For anyone still stuck on this: try the suggestions in this order based on what seems to be working most consistently: 1) underscore "_", 2) "NONE", 3) single dash "-", 4) period ".". Don't waste time with spaces or "N/A" as TurboTax specifically rejects those now. It's honestly ridiculous that we have to use these workarounds for such a basic issue. I'm definitely considering switching to a different tax software next year if TurboTax doesn't fix this user experience problem.

I actually called my state's tax department about this exact question last month. Depending on your state, many offer what's called a "manufacturer's exemption" that applies to small businesses creating products. In my state (Michigan), I don't have to pay use tax on materials that directly go into my final products. The lady I spoke with said I should fill out Form 3372 and provide it to my suppliers to avoid being charged sales tax on qualifying purchases. Worth checking if your state has something similar!

As someone who's been dealing with this for my soap making business, I can tell you the key is figuring out what your state considers "for resale" vs "for business use." In most states, raw materials that become part of your finished product (like your beads, wire, and chains) are exempt from use tax if you have a resale certificate - because you're essentially buying them to resell as part of your jewelry. But here's what tripped me up at first: things like your tools, packaging that doesn't transfer to customers, office supplies, and equipment are usually subject to use tax if you didn't pay sales tax when buying them. My advice is to start simple - get your resale certificate first (usually free from your state's revenue department), then keep two lists: one for materials that go into products, and one for everything else you buy out-of-state without paying sales tax. Most states let you report use tax annually with your regular tax filing. The good news is most states have a minimum threshold before you even need to worry about this - often around $500-1000 in taxable purchases per year. Don't let the paperwork scare you away from keeping your business compliant!

The community wisdom here is pretty clear: attempting to avoid 1099 reporting is a short-term strategy that creates long-term headaches. With the direction of IRS enforcement, almost all electronic payments will eventually be reported. The smarter approach is to embrace proper bookkeeping and separation of business/personal finances. Remember, the April 15th deadline is approaching fast, and sorting through mixed personal/business transactions takes time you probably don't have. Better to set up proper systems now than scramble later. Most small business owners I know who've switched to proper accounting systems say they wish they'd done it years earlier.

This is such a timely question! I went through the exact same PayPal surprise last year with my freelance graphic design work. What I've learned is that trying to game the system by staying under reporting thresholds is like playing whack-a-mole - the rules keep changing and you'll eventually get caught. I ended up switching to a dedicated business bank account and using simple invoicing through PayPal's business service (not friends & family). Yes, I still get 1099s, but now my records are clean from day one. The key insight for me was that the 1099 isn't the problem - poor record keeping is the problem. One tip that saved me hours: I photograph every business receipt immediately and store them in Google Drive with the date and project name. When tax time comes, everything's already organized. The peace of mind is worth way more than trying to dodge reporting requirements that are only getting stricter anyway.

I'm dealing with this exact same situation right now and this thread has been incredibly helpful! I've been e-filing for about 8 years and was completely stumped about where to send Form 8822. Like many others here, I was trying to figure out which "processing center" handled my e-filed returns, which apparently doesn't matter at all. Reading through everyone's experiences has really put this in perspective - it's just about your old physical address, not where your returns were electronically processed. I'm in Ohio, so based on the breakdown provided earlier, I'll be using the Kansas City, MO address. One question for those who've already been through this: should I wait to submit the form until after I've actually moved, or can I send it now if I know my move date? I'm moving in about 3 weeks and given the 4-6 week processing time, I'm wondering about the timing.

This thread has been a lifesaver! I'm moving from Pennsylvania to Arizona next month and was in the exact same boat - been e-filing for years and had no clue about processing centers. After reading through everyone's experiences, I feel so much more confident about this process. Just to make sure I understand correctly: since my old address is in PA, I'd use the Kansas City, MO address (64999-0023) to mail my Form 8822, right? And I can go ahead and send it now even though I don't move for another 4 weeks, since the timing should work out perfectly with their processing time. It's amazing how something that seemed so complicated at first is actually pretty straightforward once you ignore all the noise about e-filing and processing centers. Thanks to everyone who shared their real experiences - this is exactly the kind of practical advice you can't get from just reading the form instructions!