One thing nobody mentioned - did you set up your HSA yourself or through your employer? If you set it up through your employer, they might have a cafeteria plan (Section 125 plan) where your contributions are considered employer contributions for tax purposes, even though they're deducted from your pay.

Just wanted to add another perspective here - I'm a tax preparer and see this HSA confusion ALL the time during tax season. The key thing to remember is that Box 12 Code W on your W-2 shows the TOTAL amount that went into your HSA through payroll deduction, regardless of whether you think of it as "your" money or "employer" money. When contributions are made pre-tax through payroll (which yours were), the IRS considers them "employer contributions" for Form 8889 purposes. This is actually BETTER for you tax-wise because you're avoiding both income tax AND the 7.65% FICA taxes (Social Security + Medicare). Your TurboTax is handling this correctly. Don't second-guess it or you might end up double-claiming deductions. The fact that your HSA provider statement matches your W-2 Box 12W amount ($3,600) confirms everything is being reported properly. You're getting the full tax benefit - just in a different way than you initially expected!

I'm going through something similar right now! My tax preparer just quoted me $350 for adding my rental property K-1 to my return - said it's their "new standard rate" for partnership documents. The K-1 is from a simple rental LLC with just rental income and depreciation, nothing complicated. What really bothers me is that they didn't mention this fee increase when I scheduled my appointment. I've been a client for 4 years and this is the first time they've charged extra for the K-1. When I asked why the sudden increase, they gave me some vague explanation about "increased professional liability" and "new compliance requirements." I'm seriously considering switching preparers or trying to do it myself. Has anyone had luck negotiating these fees down, especially as a long-term client? It feels like they're taking advantage of people who don't want to deal with the hassle of finding someone new during tax season.

I just went through the exact same thing! My CPA suddenly wanted an extra $150 for my S-corp K-1 this year after handling it for the past 3 years with no additional charge. When I pushed back, he couldn't give me a straight answer about what had actually changed. I ended up switching to a different CPA who charged me $50 extra for the K-1 and actually took the time to explain why there's an additional fee (liability coverage, additional forms that need to be checked, etc.). The difference in service was night and day - my new preparer walked me through exactly how the K-1 numbers flowed into different parts of my return. My advice would be to call around and get quotes from other preparers in your area. I found that most charge between $50-100 for a straightforward K-1, not $200. Don't let them take advantage of you just because you're an existing client - there are plenty of qualified preparers who would be happy to earn your business at a fair price. Also, since you mentioned the K-1 is already completely prepared by your business accountant, make sure to emphasize that when getting quotes from other preparers. That should definitely factor into their pricing since they're not starting from scratch.

A lot of good advice here but something important is being missed - the SECURE Act changed the RMD age from 70½ to 72, and then SECURE 2.0 changed it again to 73 for people born 1951-1959. Your father being 79 now (born around 1945?) would have hit RMD age under the old rules. Also, depending on how small the Simple IRA is, you might want to consider a full withdrawal to simplify things going forward, especially if managing annual RMDs will be challenging with his condition.

This is a challenging situation but you're taking the right steps to get your father back into compliance. Based on my experience helping elderly clients with similar issues, here are a few additional considerations: 1. **Documentation timing is crucial** - Get a letter from his doctor that specifically states when his cognitive decline began affecting his ability to manage financial affairs. This will be key for the penalty waiver requests. 2. **Consider the timing of distributions** - Rather than taking all missed RMDs immediately, you might want to spread them across 2024-2025 to manage the tax impact, while still filing the 5329 forms for each missed year. 3. **State tax implications** - Don't forget to check if your state has any additional requirements or penalties for missed RMDs. 4. **Future planning** - Once you get this resolved, consider setting up automatic distributions from the IRA to prevent future missed RMDs, especially given his condition. The IRS really is understanding in these situations when there's documented medical cause. Focus on getting that medical documentation first, then work through each year systematically. A tax professional experienced with elder financial issues would be a good investment here given the complexity and multiple years involved.

Welcome to the US tax system! I totally get the anxiety - I remember my first refund had me checking my account every hour 😅 The good news is that IRS direct deposit dates have become much more reliable in recent years. Here's what you can realistically expect: • **90% of the time**: Your refund arrives exactly on the date shown in WMR or 1 business day after • **The IRS typically sends payment 1-2 days BEFORE** the date they show you • **Your bank's processing time** is the main variable - some post immediately, others take 24-48 hours Since you're new to the US system, here are some practical tips: - Set up account alerts so you're notified when it hits (saves obsessive checking!) - Check your account early morning (around 6 AM) on the deposit date - that's when most banks post overnight transfers - Weekend/holiday dates will process on the next business day - Don't panic if it's one day late - that's still within normal range The 3+ week wait is completely normal, especially for first-time filers. You haven't done anything wrong! The IRS is just methodical with their processing. Once you see that deposit date in WMR, you're in the home stretch. Trust the system - it works better than all those scary stories online would have you believe! 🙂

Hey there! First-time filer anxiety is totally understandable - I went through the same thing when I moved here from Canada a few years ago. The good news is that IRS direct deposit dates are actually quite reliable these days. Here's what I've learned from my experience and from this community: **Timeline Reality Check:** • The date in WMR is when the IRS *sends* the payment, not necessarily when you'll see it • Most people get their refund on that exact date or within 1-2 business days • The IRS often initiates the transfer 1-2 days before the date shown **Bank Processing Factors:** • Credit unions tend to be fastest (often same-day posting) • Major banks like Chase, BofA usually post within 24 hours • Online banks can be unpredictable • Government deposits often get priority processing **Pro Tips for Peace of Mind:** • Set up mobile banking alerts for deposits over $X amount • Check your account early morning (6-8 AM) on the deposit date • If it doesn't arrive on the scheduled date, give it one more business day before worrying • Keep your WMR info handy in case you need to call your bank Your 3+ week wait is completely normal - I waited 25 days for my first refund, and it arrived exactly when WMR said it would. The system works, it's just nerve-wracking when you're new to it! What bank are you using? That might help others give you more specific timing expectations.

Does the 1065 instructions specifically address this situation? I'm looking at the 2023 instructions and I don't see clear guidance on partner-to-partner sales...

One thing to keep in mind is the timing of when you recognize the ownership change during the year. You'll need to determine the exact date when the buyout was completed (when ownership officially transferred) to properly allocate the partnership's income, deductions, and credits. For the K-1s, use the "varying interest rule" under Section 706(d) to prorate each partner's share of items based on their ownership percentage during different periods of the year. So if the buyout happened mid-year, Partner D gets 25% allocation up to the buyout date, then 0% after. Partners A & B get 25% allocation before the buyout, then 37.5% after. Also make sure you update Schedule K-1, Part II (Partner's Share of Liabilities) to reflect the new ownership percentages. Partners A & B will need to pick up their additional share of partnership liabilities as part of their outside basis calculation, even though they paid cash for the interest. The partnership agreement should specify how these mid-year changes are handled - whether you use the closing-of-books method or proration method for allocating partnership items. This affects how precisely you need to calculate each partner's share.