I went through this exact same confusion last year! After reading through all these comments, I want to add that if you're still unsure about your specific situation, you can also check your final paystub from December. It should show year-to-date totals for various deductions including health insurance premiums. Compare what's shown on your paystub for health insurance deductions with what's in Box 14 of your W-2. If they match, then your employer is correctly reporting your pre-tax premium contributions in Box 14. This is totally normal and legitimate - you're not getting "screwed over" as someone mentioned earlier. The key thing to remember is that pre-tax health insurance premiums actually SAVE you money on taxes because they reduce your taxable income. So whether it's in Box 12 or Box 14, as long as those premiums were deducted pre-tax from your paycheck, you're benefiting tax-wise.

This thread has been incredibly helpful! I'm a CPA and want to emphasize a few key points for anyone still confused about Box 14 reporting: 1. Box 14 is NOT an error box - it's specifically designed for additional information that doesn't have a dedicated spot elsewhere on the W-2. 2. Health insurance premiums in Box 14 typically indicate they were deducted pre-tax from your paycheck, which actually BENEFITS you by reducing your taxable income. 3. The location of the reporting (Box 12 vs Box 14) doesn't change your tax liability. What matters is whether the premiums were deducted pre-tax or post-tax. 4. If you want to verify everything is correct, compare your Box 1 wages (federal taxable income) with your gross pay from your final paystub. The difference should include your pre-tax deductions like health insurance. For the original poster - your employer is likely doing everything correctly. Box 14 reporting for insurance premiums is very common and completely legitimate. You're not losing money on your taxes because of this reporting method.

I went through a similar situation with a non-recourse loan on a rental property in Nevada last year. One thing that really caught me off guard was the timing of when you have to report this income. Even though my lender canceled the debt in December, I didn't receive the 1099-C until late January, which made tax planning really difficult. The key thing I learned is that you need to determine your "adjusted basis" in the property at the time of debt cancellation, not just the fair market value. This includes your original purchase price, plus improvements, minus any depreciation you've claimed over the years. The difference between this adjusted basis and the canceled debt amount is what you'll potentially owe taxes on. Also, make sure you keep detailed records of everything - loan documents, property appraisals, improvement receipts, and depreciation schedules. The IRS may want to see all of this if they question your calculations. I'd strongly recommend getting professional help before filing, especially since you mentioned the loan was for $187,000. The tax implications can be substantial and there might be exclusions or strategies you're not aware of.

This is such a complex area of tax law! I went through something similar with a commercial property loan that was partially forgiven. One thing I'd add to all the excellent advice here is to make sure you understand the difference between "acquisition indebtedness" and "development indebtedness" if your original loan had components of both. In my case, part of the loan was for purchasing the property and part was for improvements I made. The tax treatment can vary depending on how these different portions are handled when the debt is canceled. Also, if you've been claiming any investment tax credits related to the property (like energy efficiency credits), the debt cancellation might trigger recapture of those credits too. Given the $187K amount involved, I'd really recommend getting a second opinion from a tax professional who specializes in real estate transactions, even if it costs a few hundred dollars upfront. The potential tax savings from proper planning could be substantial. Document everything now while it's fresh in your memory - you'll thank yourself later when you're trying to reconstruct the timeline for your tax preparer.

Does anyone know if books count toward the Lifetime Learning Credit? My school doesn't include them as required fees but I had to buy them for my classes.

Just wanted to chime in as someone who went through this exact same confusion last year! The $48 you're seeing for the Lifetime Learning Credit is likely due to income phase-out rules that others have mentioned, but here's something else to check: make sure you're only including qualified expenses. From your post, you mentioned $25,670 in "total qualified expenses" - that seems quite high for tuition and fees alone. If you accidentally included things like room, board, transportation, or living expenses (which don't qualify), that could throw off your calculations and make the tax software behave weirdly. Also, the reason the American Opportunity Credit is showing $1,325 versus the LLC's $48 is because the AOTC has different (often more generous) income phase-out ranges and calculation methods. The software is probably detecting that you qualify for more money with the AOTC based on your specific income level and student status. I'd double-check what expenses you included and maybe try one of the tools others mentioned to get a clearer breakdown of why there's such a big difference!

There's a simple way to check if an extension was actually filed. Call the IRS at the Practitioner Priority Line (1-866-860-4259) and ask for a "tax account transcript" for the tax year in question. The transcript will show exactly when your return was received and if an extension was filed. This is official IRS data that can't be manipulated by your accountant. You can also request it online through the IRS website if you create an account. The transcript will show every transaction with date stamps. If your accountant really filed an extension, it will appear with code "460" on your account transcript.

I'm really sorry you're going through this - it's such a violation of trust when a professional you rely on isn't honest with you. Based on everything you've described, I agree with the other commenters that your accountant appears to be lying. One thing I haven't seen mentioned yet: you should document everything immediately while it's still fresh. Write down all the dates your accountant told you things were filed, save every email and text message, and keep copies of any documents he provided (even the suspicious ones). This documentation will be crucial if you decide to pursue malpractice claims or file complaints with regulatory bodies. Also, since you mentioned this is affecting both federal and state taxes, make sure you're addressing both separately. State tax authorities often have their own penalty abatement programs, and the process might be different from the federal IRS abatement. The $13,000 in penalties is substantial enough that you might want to consult with a tax attorney who specializes in penalty abatement cases. Many offer free consultations and can quickly assess whether you have grounds for both penalty relief and potential recovery from your accountant's errors or omissions insurance. Don't let this drag on any longer - every day those collection notices get more serious, and your options may become more limited.

I work in payroll administration and can confirm that Fed MWT EE is indeed Federal Withholding Tax - Employee portion. This is your federal income tax being withheld based on your W-4 selections. One thing I'd add that others haven't mentioned - if you recently changed your filing status (got married, divorced, had kids, etc.) or your income changed significantly, you might want to review your W-4. A lot of people set it once when they're hired and never look at it again, which can lead to owing money or getting huge refunds. Also, don't feel bad about your HR being unhelpful - unfortunately that's pretty common. Most HR departments handle benefits and policies but aren't trained on the nitty-gritty tax details. The payroll department (if separate) usually knows more about deduction specifics, but even they sometimes just follow whatever the payroll software spits out without fully understanding it.

Just wanted to chime in as someone who was in your exact situation a few months ago! The whole paycheck deduction alphabet soup is so confusing when you're trying to figure out where your money is going. Fed MWT EE is definitely your federal income tax withholding (the "MWT" stands for "withholding tax" and "EE" means employee portion). What helped me understand my paystub better was actually requesting a detailed breakdown from payroll - even though your HR wasn't helpful, sometimes the actual payroll processor (like ADP or Paychex) can provide a legend that explains all their specific abbreviations. Also, since you mentioned being confused about the Medicare/FICA thing - I had the same question! Turns out FICA is like an umbrella term for Social Security AND Medicare taxes combined. Some paystubs show them separately (like your "FED MED EE" for just the Medicare part) while others lump them together under "FICA." You're definitely not paying twice - it's just different ways of displaying the breakdown. One thing that really helped me was keeping track of these deductions for a few pay periods to see the patterns. Once you understand what each abbreviation means, it becomes way easier to spot if something looks off or if your withholdings need adjusting.