Don't forget to check the math yourself! I had a similar situation and it turned out the IRS actually calculated correctly - I had missed a tax credit I was eligible for when I did my amended return. Pull out all your documents and try to reverse-engineer their math. Sometimes what looks like an error is actually them finding something in your favor that you didn't claim.

As someone who's dealt with IRS overpayments before, I'd echo the advice about not spending the extra money and being proactive about contacting them. One thing to keep in mind is that the IRS has up to 3 years to identify and request repayment of overpayments, and they will charge interest from the date you received the refund. When you do contact them, ask specifically for them to put a note in your account that you called to report the potential overpayment. This creates a paper trail showing you acted in good faith, which can be helpful if there are any disputes later about interest or penalties. Also, make sure to keep detailed records of everything - copies of your original return, amended return, the CP24 notice, the refund check, and any correspondence. If this does turn out to be an error, having all the documentation organized will make the resolution process much smoother. The silver lining is that dealing with this proactively now is much easier than trying to sort it out years later when memories are fuzzy and documents might be harder to find.

My wife just finished her first year as a realtor and we learned some hard lessons on taxes. If your wife plans to work from home, you NEED to have a dedicated space used ONLY for work to claim the home office deduction. We tried claiming our guest bedroom that she sometimes used for work and got flagged for audit. Also, quarterly estimated taxes caught us by surprise. If she starts making decent money, you'll likely need to start making those payments to avoid underpayment penalties. We ended up owing an extra $850 in penalties because we didn't know this.

One crucial thing to add - make sure your wife understands the difference between business expenses and startup costs. The IRS treats them differently for tax purposes. True business expenses (like MLS fees, gas for showings, marketing materials) can be deducted in full the year they're incurred. But startup costs (like getting licensed, initial training, setting up the business) have to be amortized over 15 years, though you can deduct up to $5,000 in startup costs the first year if total startup costs are under $50,000. Also, since real estate is heavily relationship-based, keep receipts for any client entertainment or meals - you can deduct 50% of legitimate business meals. This includes taking clients to lunch, coffee meetings with other agents, or meals during real estate events. The key is documentation for everything. The IRS loves to audit Schedule C filers, especially in the first few years when there are losses. Keep a detailed business diary showing your wife's activities, time spent, and business purpose for every expense.

Something nobody mentioned yet - the threshold for requiring a 1099 was $600 for 2023. Since you earned $4200 from these jobs, technically your clients SHOULD have given you 1099s if you earned more than $600 from any single one of them. But that's on them, not you! You did your part by reporting the income correctly. I'd just make sure you keep some basic records of who paid you and when, just in case questions ever come up. Even simple notes or a spreadsheet would be helpful.

Hey Alexis! I totally understand your anxiety - I went through something similar a few years ago with freelance graphic design work. The good news is that you did everything right by reporting the income honestly, even without 1099s. Your situation is actually pretty textbook for what the IRS considers "compliant taxpayer behavior." You reported income that you weren't even required to have documentation for, took reasonable business deductions, and filed on time. The fact that your return was processed quickly and you received your refund is definitely a positive sign. The $450 increase in your tax credit is completely normal - that's just how the math works out when you have self-employment income that qualifies for certain credits. Nothing suspicious about that at all. As for audit risk, with your income level and straightforward situation, you're statistically very unlikely to be selected. The IRS audits less than 1% of returns with income under $25,000, and yours sounds like it has all the right documentation and reasonable numbers. Just keep your records (receipts, mileage logs, client payment records) for at least 3 years in case you ever need them. But honestly, you can probably stop worrying about this one!

Something else to consider - if you're expecting to have HDHP coverage for the full year in 2026, you might want to use the "last-month rule" (also called the "full-contribution rule"). This lets you contribute the FULL annual limit even if you didn't have HDHP coverage for the entire year, as long as you're covered on December 1st and remain covered for the following 12 months.

Just wanted to add another perspective on handling HSA excess contributions - I went through this exact situation last year and learned a few things that might help. First, when you contact your HSA provider to request the excess contribution withdrawal, make sure to ask them to calculate the "net income attributable" (NIA) to your excess contribution. This is crucial because you need to withdraw both the excess amount AND any earnings on that excess. If your HSA investments lost money, the NIA could actually be negative, meaning you'd withdraw slightly less than the excess contribution amount. Second, timing matters a lot here. You mentioned you're using TurboTax - if you haven't filed yet, you're in good shape. You can make the correction and then file your return normally. But if you've already filed, you might need to file an amended return depending on when you make the correction. Also, keep detailed records of everything - your HSA provider's calculation of the excess, the withdrawal confirmation, and any correspondence. The IRS can be picky about HSA corrections, and having good documentation makes everything smoother if they ever ask questions. One last tip: consider setting up automatic contribution limits in your payroll system for next year to prevent this from happening again, especially now that you know cash-back rewards count toward your limit.

This is such a timely discussion! I just went through this exact scenario with some 4-week T-bills I had to sell early for an unexpected expense. What really helped me was calling my broker (Schwab) directly and asking them to walk through my 1099 forms before they were finalized. They were able to show me exactly how they calculated the accrued interest portion versus the capital gain/loss components. Turns out they have a specific department that handles fixed income securities, and they're much more knowledgeable about Treasury reporting than the general customer service reps. One thing I learned that wasn't mentioned yet - if you're doing this regularly (buying and selling T-bills for cash management), consider setting up a dedicated spreadsheet or using portfolio tracking software. The compound effect of multiple transactions can make year-end tax prep really complex, especially when you're trying to optimize for state tax exemptions. Also want to echo what others said about keeping detailed records. The IRS has been sending out more CP2000 notices (automated underreporter inquiries) for Treasury securities lately, so having your calculations documented upfront can save you a lot of headache later.

I appreciate everyone's detailed explanations here - this thread has been incredibly helpful! I'm dealing with a similar situation but with a twist: I purchased T-bills through multiple brokers (TreasuryDirect, Fidelity, and Schwab) throughout the year and sold some from each platform early. What's making this particularly complicated is that each broker seems to handle the reporting differently. TreasuryDirect sent me a 1099-OID, Fidelity lumped everything into their 1099-INT without clearly breaking out the accrued interest portion, and Schwab actually did provide a decent breakdown on their year-end statement. For anyone else juggling multiple brokers, I'd strongly recommend reaching out to each one's fixed income department (as Keisha mentioned) well before tax season. I waited until January to start sorting this out and it's been a nightmare trying to reconstruct all the transactions and ensure I'm not double-counting or missing anything. One specific question: if I received a 1099-OID from TreasuryDirect for bills I later transferred and sold through a broker, how do I make sure I'm not reporting the same interest income twice? The broker's 1099 seems to include some of the same time period that was covered by the OID reporting.