I've been following this thread and wanted to add one more thing that might help - if you're using TurboTax specifically, there's sometimes a question early in the interview process that asks "Did you receive any tax documents related to health insurance?" and people accidentally say yes thinking about their 1095-C. But then later the software asks specifically about Marketplace coverage and creates this exact conflict. Also, make sure to check if there's a "delete" or "remove" option next to any 1095-A references in your software - sometimes you have to actively remove the form rather than just changing your answers. The good news is that once you find and fix the right setting, your return should go through immediately on resubmission. And don't worry about the April 15th deadline stress - this type of software error is exactly what extensions are for!

I'm experiencing something very similar right now! Filed electronically this morning and got an immediate rejection for missing 1095-A. Like you, I only have employer coverage with a 1095-C form. After reading through all these responses, it's clear this is a super common tax software issue where we accidentally indicated Marketplace coverage somewhere. I'm going to go back through every single health insurance question in my software tonight, especially looking for those sneaky "premium tax credit" questions everyone mentioned. If I can't figure it out quickly, I'll definitely file Form 4868 for the extension - better safe than sorry on tax day! Thanks to everyone who shared their experiences here, this thread is a lifesaver for people dealing with this exact frustrating situation.

Don't forget to consider quarterly estimated tax payments! If you're splitting $38k, each making $19k from the content creation, you both likely need to be making quarterly payments to avoid underpayment penalties. This bit me hard my first year!

I was in almost the exact same situation with my podcast! After reading through all these responses, I'd strongly recommend getting clarity on whether you're actually a partnership before doing anything else. Here's what I learned the hard way: if you and your friend are both actively creating content together and splitting profits 50/50, the IRS will likely consider you a partnership regardless of whose name the income comes under. This means you should be filing Form 1065 (partnership return) and each getting a K-1, not issuing 1099s. The key test is whether you're both contributing to the business activities (sounds like yes) and sharing profits/losses (definitely yes). If that's the case, the 1099-NEC route others mentioned could actually get you in trouble later. I'd suggest using one of the services mentioned here (like Claimyr to talk directly to the IRS, or taxr.ai to analyze your specific situation) to get a definitive answer before you file anything. Better to spend a little money upfront than deal with an audit later like Diego mentioned above!

This is exactly what I needed to hear! I went through a similar situation two years ago and had no idea about transcripts. Spent weeks calling the IRS helpline and getting nowhere. The Account Transcript really is like having insider knowledge - once you understand what you're looking at, it takes so much stress out of the waiting process. For anyone else reading this, I'd also recommend setting up text alerts with your bank if you have direct deposit. That way when the 846 code shows your deposit date, you'll get notified the moment it actually hits your account. Sometimes it comes through overnight or early morning, so you don't have to keep checking your balance obsessively. One thing I learned the hard way - screenshot your transcript when you see the 846 code appear! I had a friend whose transcript glitched for a day and the code temporarily disappeared, which sent her into a panic thinking something went wrong. Having that screenshot saved her sanity while waiting for the system to update properly again.

This thread has been a goldmine of information! I filed on February 25th and have been checking my transcript obsessively without really understanding what I was looking at. After reading everyone's explanations, I finally understand that my code 150 with cycle 20240905 means I was processed in week 9 on a Friday, and now I'm just waiting for the 846 code to appear. One thing I'm curious about - has anyone noticed if there's a pattern to how long it takes from seeing your 150 code to getting the 846 code when there are no holds involved? I know the IRS says 21 days, but I'm wondering if the actual timeline is more predictable than that. My transcript currently just shows the 150 code and I'm trying to gauge if I should expect my refund in the next week or if I'm still looking at another 2-3 weeks. Also want to echo what others have said about Wednesday morning checks - I wish I had known about this timing earlier! Would have saved me from checking randomly throughout the week and getting frustrated when nothing changed.

Wow, this has been such an incredibly helpful and reassuring thread to read! As someone who went through a similar zero-income period a couple years ago, I can totally relate to that anxiety about potentially messing something up with taxes when you're already dealing with unemployment stress. What really stands out to me is how consistent everyone's advice has been - whether from tax professionals, people who've called the IRS directly, or folks who've been through this exact situation. That kind of consensus across so many different sources really validates that this is straightforward guidance, not some complicated edge case. The key point that helped me the most when I was in your shoes was understanding that the $13,850 filing threshold isn't arbitrary - it's specifically designed to filter out situations like yours where there's no tax liability. The system is literally built to handle unemployment periods, and not filing when you're below the threshold is actually the correct thing to do. Harper, you've clearly done your research thoroughly and gotten excellent advice from this community. You can definitely cross "tax worries" off your stress list and focus that energy on your job search instead. The fact that you care so much about doing things properly shows you'll handle everything correctly when you do get back to work. Best of luck with the job hunt - the market is tough right now but your conscientious approach will serve you well!

I've been following this discussion and wanted to add my perspective as someone who recently went through a very similar situation. The level of detailed, consistent advice here is amazing! One thing that really helped ease my anxiety when I was unemployed with zero income was understanding that the IRS filing system is actually quite logical - if you have no income to tax, there's literally nothing for them to process. The $13,850 threshold exists specifically to prevent unnecessary paperwork for both you and the IRS. I also want to emphasize something that several people touched on: your concern about doing this correctly actually shows you're exactly the type of person who will handle taxes properly when you do return to work. The fact that you researched this thoroughly instead of just guessing demonstrates real responsibility. Harper, based on everything shared here from tax professionals, people who've contacted the IRS directly, and folks with personal experience, you can be confident that not filing with zero income is absolutely the right approach. Save your energy and what little money you have for the job search - that's where your focus should be right now. The job market is brutal, but your thoughtful approach to handling challenges will serve you well. You've got the tax situation completely figured out correctly!

3 Is anyone else bothered by how difficult they make this for regular people? I'm not an accountant or tax professional and it feels like the government deliberately hides this information to trip us up. All these extra steps just to figure out a number they already know!

I totally understand your frustration! I went through this exact same issue with my first rental property last year. Here's what worked for me: Check your original purchase documents more carefully - sometimes the breakdown is buried in the settlement statement or HUD-1 form under different terminology like "site value" or "structure value." If that doesn't work, try calling your real estate agent who helped with the purchase. They often have access to MLS data that includes land/improvement ratios for comparable properties in your area. Another option is to look up recent sales of similar properties in your neighborhood on your county's real estate records website. Many show the assessed land vs improvement values for recently sold homes, which you can use to estimate a reasonable ratio for your property. Don't overthink it too much - the IRS allows reasonable estimates when exact figures aren't available. Just document your methodology in case you're ever asked about it later. You're not going to get in trouble for making a good faith effort to split the values reasonably!