Has anyone used TurboTax to file with a Section 475(f) election in place? I made the election last year but I'm not sure if the software handles it correctly.

I went through this exact same confusion last year! You're right that the IRS publications are incredibly unclear about this. To answer your questions directly: 1) Yes, your original Section 475(f) election from last year is still valid for 2024 and all future years until you formally revoke it. You don't need to resubmit anything. 2) For your 2023 tax return (filing in 2024), you'll report all your trading activity on Schedule C as ordinary income/loss, not Schedule D. The MTM election treats you as marking all positions to market on December 31st. One important thing to double-check: make sure you're keeping good records of your December 31st position values, since you'll need to report the difference between your actual realized gains/losses and what the positions were worth at year-end. This can get tricky if you held positions overnight on December 31st. Also, don't forget that as a trader with the MTM election, you can deduct business expenses (home office, equipment, education, etc.) that regular investors can't deduct. But you'll also potentially owe self-employment tax on your net trading income. The election staying in effect automatically is actually one of the few trader-friendly aspects of the tax code!

Does anyone know if vision and dental expenses count as qualified medical expenses for HSA purposes? My employer contributes $750 to my HSA and I add $3,100 to max it out, but I'm not sure what all I can use it for.

Just to clarify one important point that might help with your AGI calculation - the $1,000 your employer contributes to your HSA is actually reported in Box 12 of your W-2 with code W, but it's NOT included in your taxable wages in Box 1. So when you're doing your taxes, you only get to deduct the $2,850 that you personally contributed. However, if you made your personal contributions through payroll deduction (which most people do), that $2,850 is also already excluded from Box 1 of your W-2, so you wouldn't take an additional deduction on your tax return. You only take the HSA deduction on Form 8889 if you made contributions directly to your HSA outside of payroll. The key thing for your AGI calculation is that employer HSA contributions never increase your income in the first place, so they can't reduce it either. Only YOUR contributions can reduce your AGI, and only if they weren't already excluded through payroll deductions.

I'm going through this exact same situation! My consulting business took off in 2023 and now I'm making significantly more than my spouse. We filed MFJ without even thinking about it, but after reading this thread I ran some rough calculations and we might have overpaid by thousands too. It's incredibly frustrating that the IRS allows changes from MFS to MFJ but not the other way around. Feels like they're penalizing people for not knowing about this obscure rule. At least now I know to run both scenarios before filing this year. Has anyone here actually made the switch to MFS and seen real savings? I'm curious about the practical impact beyond just the tax calculation - like how it affects things like healthcare subsidies or other benefits that are income-based.

This is such a common frustration! I went through something similar when I started my photography business. What really helped me understand the MFJ vs MFS decision was getting organized about tracking ALL business expenses throughout the year, not just at tax time. For your design business, make sure you're capturing everything - software subscriptions, equipment purchases, home office expenses, client meeting costs, even mileage to shoots or meetings. Many freelancers miss out on legitimate deductions simply because they don't track them properly. Also consider the timing of income and expenses. Since you can't fix past returns, you might be able to strategically time some 2024 business purchases or defer some client payments to optimize your tax situation going forward. A good bookkeeping system will make running MFJ vs MFS comparisons much easier each year. The key is being proactive about tax planning rather than reactive. Set up quarterly check-ins to review your numbers and projected tax liability - this way you can make informed decisions about filing status before you're locked in.

I completely understand your anxiety - I went through this same situation about 6 months ago with our company's 401(k) plan. The waiting period is absolutely the worst part because you're dealing with potentially significant penalties hanging over your head. From my experience, 3 weeks is still very early in the process. My timeline was: submitted forms in September, check was cashed after 4 weeks, and I received an official acceptance letter at the 7-week mark. But I've heard of others waiting 10-12 weeks, especially during busy periods. The key thing to remember is that the Late Filing Penalty Relief Program exists specifically to help small plan sponsors get back into compliance without facing the full penalty amounts. The IRS wants you to succeed in this program - it's better for them to collect the reduced penalty and have you compliant than to pursue the much larger penalties that many small businesses simply can't afford to pay. If you followed the instructions correctly and included all required documentation with the proper payment amount, you should be fine. The fact that they haven't sent any rejection or request for additional information is actually a good sign. Keep checking to see if your check has been cashed - that's usually the first indication that your submission is being processed normally. Hang in there! The uncertainty is brutal, but most people who properly submit get accepted into the program.

I went through this exact same process about a year and a half ago, and I completely understand the stress you're experiencing right now. The uncertainty around potentially massive penalties is absolutely nerve-wracking. From my experience, three weeks is still very early in the timeline. My submission took about 8 weeks total - they cashed my check after 5 weeks, and I got a confirmation letter at the 8-week mark. But I've seen people wait anywhere from 6-12 weeks depending on the time of year and IRS workload. One thing that really helped ease my anxiety was understanding that the Relief Program has a very high acceptance rate for properly submitted applications. The IRS genuinely wants small plan sponsors to get back into compliance rather than dealing with collections on massive penalties that many businesses simply can't pay. If you haven't heard anything negative by now and you followed the Form 14704 instructions carefully (especially the penalty calculation section), you're almost certainly going to be fine. The IRS would have already contacted you if there were major issues with your submission. Keep an eye on whether your check gets cashed - that's usually the first real sign that things are moving forward normally. And try not to stress too much in the meantime - I know it's easier said than done, but the program really does work as intended for situations like yours!

Just to complicate things even more - if you're using a Solo 401k plan, the total contribution calculation is slightly different than a regular 401k. For 2023, you can contribute up to $66,000 total between employee and employer contributions (or $73,500 if you're over 50). The employee part is straightforward ($22,500), but the employer contribution limit is actually 25% of compensation AFTER subtracting the employee contribution from your total compensation. Most accountants mess this up!

I went through this exact same confusion with my S-Corp last year! The key thing to remember is that as an S-Corp owner, you're essentially wearing two hats - you're both an employee (receiving W-2 wages) AND the employer. Your financial advisor is correct - the employer contribution is limited to 25% of your W-2 compensation ($105k), which equals $26,250. This is completely separate from any distributions you take from the company. The distributions don't count as "earned income" for retirement plan purposes. What might be confusing your accountant is that for other business structures (like sole proprietorships or partnerships), the calculation IS based on net earnings from self-employment. But since you've elected S-Corp status and are paying yourself a reasonable salary with proper payroll taxes, you follow the W-2 compensation rules. One thing to double-check: make sure your $105k salary meets the IRS "reasonable compensation" test for your industry and role. If the IRS ever audits and determines your salary should be higher, it could affect your contribution calculations retroactively.