Great question! I see you've gotten some excellent explanations already, but let me add one practical tip that might help clarify things for you. When you file your taxes, you'll report your $5,800 HSA contribution on Form 8889, and this creates what's called an "above-the-line" deduction on Line 13 of Form 1040. This is actually better than itemized deductions because it reduces your Adjusted Gross Income (AGI) regardless of whether you take the standard deduction or itemize. To put it simply: if you're in the 22% tax bracket, your $5,800 contribution will save you roughly $1,276 in federal taxes ($5,800 × 0.22). However, the exact savings depend on your total income and which tax brackets that income falls into. One thing to double-check: make sure your $5,800 doesn't exceed the 2024 HSA contribution limits. For individual coverage it's $4,150, and for family coverage it's $8,300 (plus $1,000 catch-up if you're 55+). If you contributed more than your limit, you'll need to withdraw the excess to avoid penalties. The key takeaway is that HSA contributions are one of the best tax advantages available - you get the deduction now, the money grows tax-free, and qualified withdrawals are tax-free too. It's truly "triple tax-advantaged.

I wanted to clarify something important about the HSA contribution limits that's been mentioned a few times in this thread. For 2024, the correct HSA contribution limits are actually $4,150 for individual coverage and $8,300 for family coverage, with an additional $1,000 catch-up contribution allowed if you're 55 or older. I noticed there was some confusion earlier with different numbers being cited. These limits are set by the IRS and published in Revenue Procedure 2023-23. Since Dylan mentioned contributing $5,800, this would be fine if he has family coverage ($8,300 limit) but would exceed the individual coverage limit. To Dylan's original question about how the deduction works: When you report your HSA contributions on Form 8889, the deduction reduces your taxable income dollar-for-dollar. So if you're in the 22% marginal tax bracket, you'd save approximately $1,276 in federal taxes ($5,800 × 0.22). This assumes you're solidly within that bracket and not crossing into a lower one due to the deduction. The key thing to remember is that this is different from a tax credit - it's a deduction that reduces your taxable income, which then reduces your tax liability based on your marginal tax rate.

I've been following this discussion with great interest as someone who's currently weighing the same decision! The insights from everyone who's actually worked at both companies have been invaluable. What really stands out to me is how the choice seems to depend on your learning style and career goals. If you're someone who needs to understand the foundational "why" behind tax concepts (like me), Liberty's manual approach sounds beneficial despite the teaching style challenges Maya mentioned. But if you're more focused on getting job-ready quickly with practical software skills, H&R Block's digital approach seems like the better fit. The pay difference Isaac mentioned is definitely significant - that extra $2-3/hour really adds up over a tax season. But I'm also thinking about the long-term career trajectory that Julian highlighted. Having a clear advancement path and professional development opportunities might be worth more than the immediate hourly difference. I'm leaning toward starting with whichever program fits my schedule better (since consistency in training seems crucial) and then potentially exploring opportunities with the other company once I have some foundation. The hybrid approach several people mentioned - getting strong fundamentals from one program and practical skills from another - seems like it could make someone a really well-rounded tax preparer. Thanks to everyone who's shared their experiences! This is exactly the kind of real-world insight you can't get from company brochures.

Maya, I completely understand your dilemma! I went through something very similar last year when I was choosing between tax prep programs. From my research and talking to people in both programs, here's what I found most helpful in making the decision: **Consider your long-term goals first.** If you're planning to do this seasonally for extra income, H&R Block's faster software training might be perfect. But if you want to eventually become an EA or work at a CPA firm, that deeper foundation from Liberty's manual approach could be invaluable. **The teaching style issue is real and important.** I ended up switching programs mid-course because the instructor's approach just wasn't clicking for me. Don't underestimate how much this affects your learning - you're investing time and money, so make sure you're actually absorbing the material effectively. **Try before you fully commit.** Most H&R Block locations will let you sit in on a sample session or at least talk through their curriculum approach. Since you're already partway through Liberty, this could help you decide if it's worth switching now or finishing Liberty and potentially supplementing later. The pay difference you mentioned is definitely real in most markets, and the work environment differences Julian described are worth considering too. But remember - your success will ultimately depend on how well you master the material and serve clients, regardless of which company's name is on your certificate. Whatever you decide, don't feel bad about prioritizing what works best for your learning style and goals!

I totally get your weekend panic - been there myself! Unfortunately no IRS phone support on weekends, but here's what helped me in a similar situation: First, if your notice has a specific response deadline, don't stress too much about calling immediately. Most IRS notices give you 30+ days to respond, and you can often handle everything by mail without needing to call at all. Second, definitely check if you can access your IRS online account this weekend. Sometimes you can find transcripts or additional details about your notice that make the situation clearer. If you absolutely need to talk to someone Monday, I'd suggest calling right at 7 AM when they open - wait times are usually shortest then. Also consider that many IRS issues that seem urgent actually aren't as time-sensitive as they feel when you're stressed. What type of notice did you receive? Sometimes knowing the specific form (CP2000, CP3219, etc.) can help determine if it's truly urgent or if you have more time than you think.

Hey Daniel! I feel your weekend panic - I've been in that exact situation before where you get an IRS notice and can't sleep until it's resolved. Unfortunately, like others mentioned, the IRS phone lines are definitely closed on weekends. But here's what I'd suggest for right now while you're stressed on a Friday night: First, take a deep breath! Most IRS notices aren't as scary as they seem at first glance, and you almost certainly have more time than you think to respond properly. If you haven't already, try setting up that IRS online account tonight - you might be able to see your tax transcripts and get a better understanding of what's going on. Sometimes just having more information helps reduce the panic. Also, what type of notice did you get? The notice code (like CP2000, CP14, etc.) is usually at the top right. That can help determine how urgent it really is. Many people think they need to call immediately, but often you can respond by mail with the right documentation, which might actually be better than calling anyway since you'll have everything in writing. Hang in there - Monday will come soon enough, and this will get sorted out!

This is such a common struggle for single-member LLC owners! I went through the exact same confusion in my first year. One thing that really helped me understand the separation was thinking of it this way: your LLC earns the money, but YOU (as an individual) owe the taxes on that income. So the flow should be: Business pays all legitimate business expenses → Business makes distributions to you personally → You pay your individual tax obligations (SE tax, income tax, etc.) from your personal funds. For practical implementation, I set up automatic quarterly transfers from my business account to personal, calculated as roughly 25-30% of my net business income. This covers estimated taxes and prevents me from accidentally spending tax money on business expenses. I also keep a simple spreadsheet tracking each distribution with the purpose noted. The health insurance situation you mentioned is totally normal - many providers only accept personal payments. Just do a clean transfer for the exact premium amount and document it as "distribution for health insurance premium." You'll still get the deduction on your personal return.

One thing I learned the hard way is to be really consistent with your documentation from day one. I got lazy with labeling my transfers in year one and it created a mess when my accountant was preparing my taxes. A simple naming convention makes all the difference - I use "Owner Draw - Quarterly Tax Q1 2024" for tax distributions and "Owner Draw - Health Insurance March 2024" for health-related transfers. This way there's never any question about what each transfer was for if the IRS ever looks at your records. Also, don't forget that estimated tax payments should include both your income tax AND self-employment tax portions. I initially was only calculating income tax for my quarterly transfers and got behind on SE tax. A good rule of thumb is to set aside about 15.3% specifically for SE tax plus whatever your income tax rate is. Better to overpay and get a refund than to underpay and owe penalties!

One thing nobody's mentioned - if you're paying $1,890/month with only a $340 subsidy, you might qualify for a larger subsidy depending on your income. The ACA subsidies were expanded for 2023-2025. Might be worth double-checking on healthcare.gov if your marketplace plan is giving you the maximum subsidy you're entitled to. Could save you more money than any tax deduction!

I went through this exact same situation last year! The key thing to understand is that there are actually TWO different types of health insurance deductions, and most people (including tax software) get them confused: 1. **Self-employed health insurance deduction** - This is the "above-the-line" deduction that reduces your AGI directly. You DON'T qualify for this since you're not self-employed. 2. **Medical expense itemized deduction** - This is where your ACA premiums (minus subsidies) can potentially be deducted, but only if you itemize AND your total medical expenses exceed 7.5% of your AGI. Based on your numbers ($32k AGI, $18,600 in net premiums after subsidies), you'd easily clear the 7.5% threshold ($2,400). The question is whether itemizing makes sense overall. Here's what I'd suggest: Make sure you're capturing ALL your medical expenses - not just premiums. Include copays, prescriptions, dental work, vision care, medical equipment, even mileage to medical appointments. Also don't forget about state income taxes paid, property taxes (if any), and charitable donations for your itemized total. Your situation actually looks like a good candidate for itemizing, unlike most ACA marketplace participants. Definitely worth running the numbers both ways before filing!