This is a really common confusion! I went through the exact same thing last year. The key thing to understand is that if your plan through Aetna is truly "free" (meaning you're not paying premiums and didn't receive advance premium tax credits), then you wouldn't get a 1095-A form regardless of any dollar threshold. The 1095-A is specifically for people who purchased insurance through the Health Insurance Marketplace AND received premium tax credits that need to be reconciled on their tax return. If you have a free plan, it's likely either Medicaid coverage or some other type of subsidized plan that doesn't involve the Marketplace premium tax credit system. When FreeTaxUSA asks about the 1095-A, you can safely indicate you don't have one. The software is just being thorough by asking about all possible tax forms. Most people with employer coverage or Medicaid don't need this form at all. You should be able to proceed with your return without any issues once you tell the software you don't have a 1095-A.

I work as a tax preparer and see this confusion every tax season! You're absolutely right to be puzzled - Aetna's customer service gave you incorrect information about the $600 threshold. That threshold doesn't exist for 1095-A forms at all. Here's what's actually happening: Since you have a free health plan through Aetna, you most likely have Medicaid managed care coverage (where Aetna administers your state Medicaid benefits). Medicaid coverage doesn't generate 1095-A forms because it's not purchased through the Health Insurance Marketplace and doesn't involve premium tax credits. The 1095-A is exclusively for people who bought insurance through Healthcare.gov or their state's marketplace AND received advance premium tax credits that need to be reconciled on their tax return. Your free Aetna plan falls into a completely different category. When FreeTaxUSA asks about the 1095-A, simply select that you don't have one or that it doesn't apply to your situation. The software will move on and you can complete your return normally. You're not missing anything important - you just don't fit the profile of someone who would receive this particular form.

Pro tip: Download your transcript and upload it to taxr.ai - it'll tell you exactly whats happening and when to expect movement. Way better than playing detective with these codes

Code 720 is actually pretty standard - it just means your return is in the system and being processed. I've seen this code on my transcripts for the past few years. The timing really varies though - sometimes it moves quickly, other times it sits there for weeks. Don't stress too much about it, but definitely keep checking your transcript weekly for updates. The IRS has been pretty backed up lately so patience is key!

the fact we gotta wait so long that they paying interest is wild af tbh

Been waiting since April 2024 here and this is super helpful info! Had no idea they'd include the interest in the same check. At 7% that's actually not terrible considering how long we've all been waiting. Thanks for the heads up about the 1099-INT too - would've definitely forgotten to report that interest as income next year.

Has anyone used both TurboTax and H&R Block for reporting options trading? I'm trying to decide which one handles it better this year.

One important consideration that hasn't been mentioned yet is the time value remaining in your option. Since your option doesn't expire until February 15, you still have significant time value that you'd be giving up if you exercise now. With the stock at $43 and your strike at $20, your option has $23 of intrinsic value. But the option itself is likely worth more than $23 due to time value and potential for further upside. You might want to compare the current market price of your option to the $23 intrinsic value before deciding whether to exercise or sell the option outright. If you're primarily concerned about tax treatment and want to convert to stock ownership for long-term capital gains, exercising makes sense. But if you're looking to maximize your return, selling the option might be more profitable since you'd capture both intrinsic and time value. Also, exercising requires you to put up the $20 strike price per share, which ties up additional capital. Just something else to factor into your decision alongside the tax implications everyone has covered.

I'm confused about the timeline for fixing this. My accountant did the same thing with our $18k refund. If I submit the amendment now (late May), will I still get the refund or is it too late? Has the first estimated payment for next year already happened?

This is exactly why it's so important to review everything before your accountant files your return. I learned this lesson the hard way a few years ago when my CPA made similar decisions without consulting me first. For future reference, always ask to see a copy of your return before it's submitted and specifically look at the refund section to see how they're handling any overpayment. Most tax software will show this clearly - whether it's going to direct deposit, check, or applied to next year's estimated taxes. Also, consider having a conversation with your accountant about their standard practices. Some CPAs automatically apply large refunds to estimated taxes because they assume clients who owe that much in taxes would want to prepay to avoid underpayment penalties. But $40k is a substantial amount that most people would want immediate access to. You might want to evaluate whether this accounting firm is the right fit for you going forward, especially given their unhelpful response when you raised concerns about a decision they made without your consent.