Just checking - are you SURE you're actually ineligible for HSA contributions? Being on your parents' plan doesn't automatically disqualify you if that plan is an HDHP that meets the requirements for HSA eligibility. The IRS rules state you can contribute to an HSA if: 1. You're covered by an HDHP 2. You have no other health coverage (with some exceptions) 3. You aren't claimed as a dependent on someone else's tax return 4. You aren't enrolled in Medicare If your parents' plan is an HDHP that meets the deductible requirements ($1,400+ for individual coverage in 2022), and you meet the other criteria, you might actually be eligible! Worth checking the details of your parents' plan before going through all this trouble.

Dylan, you're absolutely making the right choice with that plan! I went through almost the exact same situation two years ago and can confirm that the approach you've outlined (excess contribution withdrawals + amended 2022 return + reporting distributions on 2023 return) is definitely the cleanest way to handle this. A few quick tips from my experience: 1. When you contact the HSA administrators, specifically ask them to remove the contributions as "excess contributions due to ineligibility" - this ensures they handle it properly and don't just treat it as a regular distribution. 2. Keep detailed records of all the paperwork and correspondence. The HSA providers should give you confirmation letters showing the excess contribution removal, which you'll want for your tax files. 3. The 6% excise tax for 2022 will be calculated on Form 5329 that you'll file with your amended return, but since you're removing the funds promptly, it should be relatively minimal. The fact that you caught this and are fixing it proactively shows you're being responsible about it. The IRS deals with HSA contribution errors all the time - it's really not as scary as it feels when you're going through it. You'll get through this just fine! Sleep well knowing you have a solid plan. The hardest part (figuring out what to do) is behind you now.

Quick warning about Venmo - they've been updating their reporting requirements almost yearly. In 2022, they were supposed to start reporting $600+ to the IRS but then it got delayed. Keep an eye on the news because this is changing all the time and the "friends and family" loophole might not work forever.

I'd also recommend your cousin start keeping detailed records now if he hasn't already - not just for this year's taxes, but for future audits. The IRS can go back 3-6 years (or longer in cases of suspected fraud), so having organized records of income and expenses is crucial. Since he's essentially running a business, he should consider opening a separate business checking account and getting a business credit card for expenses. This makes tracking so much easier and looks more professional if he ever gets audited. Plus, many business credit cards offer cash back on tools and supplies. One more thing - if he's planning to continue this handyman work, he might want to look into getting proper business insurance. If he gets injured on a job or accidentally damages someone's property, personal insurance might not cover it since it's business activity.

I'm dealing with this exact same situation! My individual 401k just hit the $250k threshold and I'm completely overwhelmed by the Form 5500 requirement. My CPA also basically said "not my department" which left me scrambling to figure out what to do. Reading through all these responses has been incredibly enlightening - especially the breakdown from @Kiara Greene about using Claimyr to talk directly to an IRS specialist first, then handling the EFAST2 filing yourself. The fact that you can get this done for under $50 versus paying $800+ to a TPA is exactly what I needed to hear. I had no idea that solo 401k filings were actually much simpler than the multi-participant plans, or that most of the Form 5500-EZ doesn't even apply to single-participant situations. It sounds like a lot of the complexity and fear around this form comes from CPAs and TPAs not wanting to deal with something outside their usual wheelhouse. Has anyone run into issues with the EFAST2 system itself being glitchy or hard to navigate? I'm pretty comfortable with technology but want to know what I'm getting into before I start the registration process.

I'm dealing with this exact same situation right now! My individual 401k with Schwab just hit $255k and I had no idea about Form 5500 requirements until I started researching. Like you, my CPA basically said "not my problem" and suggested I find a specialist, which was frustrating since I thought this would be part of normal tax services. Reading through all these responses has been incredibly helpful - especially learning that solo 401k filings are much simpler than the complex multi-participant plans that scare most CPAs away. The combination approach of using Claimyr to get direct IRS guidance first, then filing through the DOL's free EFAST2 system seems like the perfect solution. It's honestly ridiculous that Schwab and other custodians don't provide better guidance on compliance requirements when you hit these thresholds. They're happy to collect fees but leave you hanging when it comes to the paperwork side. At least now I know I'm not alone in dealing with this and that it's absolutely manageable without paying thousands to a TPA! Thanks everyone for sharing your experiences - this thread is going to save me a ton of money and stress.

I just went through the ID.me verification process last month and wanted to share my timeline to give you hope! I completed verification on September 15th and got my refund deposited on October 8th - so about 3.5 weeks total. Like others have mentioned, the transcript is definitely your friend during this waiting period. I saw movement on my transcript about 10 days after verification with some processing codes, and then the 846 refund code appeared about a week before I actually got the deposit. One thing I noticed is that the IRS seems to process verified returns in batches, so timing can depend on when your return hits their queue. Since you filed in April originally, your return is probably already in their system and just needs to go through the post-verification processing steps. The IP PIN is definitely worth getting - it's free and will save you potential headaches next year. I set mine up right after I got my refund and it was super easy. Hang in there! The 9 week timeline is their conservative estimate, but most people I know who had straightforward verification situations got their refunds in 3-6 weeks.

I went through this same process earlier this year and can share some realistic expectations. Completed ID.me verification in March and got my refund in May - so about 8 weeks total, which was closer to their worst-case timeline unfortunately. A few things I learned during the process: - The Where's My Refund tool is basically useless during this waiting period. It just says "being processed" forever - Your transcript is where you'll see actual progress. Look for codes like 971 (notice issued), 570 (account frozen), 571 (account unfrozen), and eventually 846 (refund scheduled) - The timeline really depends on what triggered your verification and how backed up they are when your case hits the queue Since you filed in April and just completed verification in October, you've already been waiting quite a while. The good news is that your return is already in their system, so it should just need to go through the post-verification review process. I'd definitely recommend getting that IP PIN they mentioned - it's free and will protect you from identity theft issues in future tax seasons. Won't speed up your current refund, but it's good peace of mind. Try to be patient (easier said than done, I know!) and check your transcript weekly for updates. Good luck! 🤞

I work in a university billing office (not financial aid) and can tell you this happens all the time! When a student withdraws mid-year, there are often adjustments that happen in the following calendar year. Some common reasons for a Box 4 amount with blank boxes elsewhere: - Housing deposit applied retroactively to tuition - Scholarship or grant adjusted after the calendar year ended - Fee refunds processed in the new year - Dropped class adjustments that happened after December 31 - Corrections to prior billing errors The school is required to report these adjustments on a 1098-T for the year they were processed, even if the student is no longer enrolled. But since you didn't claim education credits for 2022, you probably don't need to worry about it from a tax perspective!

This is a great question that many parents face when their kids withdraw from college! As someone who went through a similar situation, I can share what I learned. The Box 4 amount on a 1098-T represents "adjustments made for a prior year" - essentially corrections or changes the school made to your son's 2022 account that they processed in 2023. This could be anything from a late scholarship payment, a housing deposit credit, or even a billing correction. The key thing to understand is that since you didn't claim any education credits on your 2022 taxes, this adjustment likely won't affect your tax situation at all. The IRS requires schools to report these adjustments even when the student is no longer enrolled, which is why you're seeing a 2023 form. I'd suggest checking your son's student account portal for any transactions from early 2023 that reference his 2022 semester. You might also want to look at his bank statements to see if there were any small refunds he might not have mentioned. Many students don't realize these types of adjustments are happening behind the scenes. If you really want peace of mind, you could always consult with a tax professional, but based on what you've described, it sounds like this is just administrative bookkeeping that won't impact your taxes.