One thing to consider - check if the platforms you work with issue 1099 forms or any other tax documents to you at year-end. If they do, you should verify whether these were issued to you personally or to your company during the last two years. This might affect how you need to address the situation.

Don't panic too much about this - it's a more common mistake than you'd think! I made the exact same error when I transitioned my consulting business from sole proprietorship to an LLC a few years back. The key thing is that you've corrected it now and you've been properly reporting the income. Since you mentioned you've been paying UK corporation tax on all the earnings, that shows good faith compliance with your tax obligations. One thing I'd suggest is documenting everything - keep copies of both the old W8BEN and new W8BEN-E forms, along with the dates you submitted the updates to each platform. If any questions ever come up, having a clear timeline showing when you discovered the issue and immediately corrected it will work in your favor. Also, since the UK has a tax treaty with the US, the withholding rates are likely the same regardless of which form was used, so there probably wasn't any actual tax impact - just a documentation mismatch that you've now resolved.

Has anyone successfully dealt with excess contributions through TurboTax? I'm confused about how to report this correctly in the software.

I went through something very similar last year and can relate to the stress you're feeling! The good news is this is definitely fixable, but you'll need to be persistent with Fidelity to get it handled correctly. First, call Fidelity back and ask to speak with someone in their IRA department specifically - don't just talk to general customer service. Tell them you need to "recharacterize" your withdrawal as a "return of excess contribution" for 2024. They should be able to do this since you're still in the same tax year. Make sure they understand you're correcting an excess contribution, not just making a regular withdrawal. Once they process this correctly, you'll get a 1099-R form that properly shows the distribution as a return of excess contribution. Any earnings that were generated on that excess contribution will be taxable income for 2024 and potentially subject to the 10% early withdrawal penalty if you're under 59½. Since you've already filed, you'll likely need to file an amended return (Form 1040-X) once you get the corrected documentation from Fidelity. The timing actually works in your favor since you caught this so quickly - there probably weren't significant earnings on the excess contribution during that short time period. Don't panic about the penalties - if Fidelity processes this as a proper excess contribution removal, you should be able to avoid the 6% excise tax. Just make sure you get the right paperwork from them showing it was handled correctly.

I went through this exact scenario two weeks ago! My transcript showed 846 with DD date of 2/28, but WMR kept saying paper check was coming. I was so confused I even drove to my local IRS office to ask in person. The agent there confirmed what everyone's saying - the transcript is the authoritative source. She explained that during busy periods, WMR can show outdated information because it's essentially a "customer service" tool that doesn't always reflect real-time processing status. Sure enough, my refund hit my bank account exactly on 2/28 as the transcript indicated. The WMR tool didn't update to show "refund sent" until 3 days AFTER I already had the money! Trust your 846 code and save yourself the worry.

I'm dealing with this exact same situation right now! My transcript shows 846 with a DD date of 3/12, but WMR has been stuck on "paper check will be mailed" for the past week. Reading through all these responses is really reassuring - it sounds like the transcript is definitely the more reliable source. I was starting to worry that maybe there was an issue with my bank account info, but it's good to know this is a common system glitch during tax season. I'll trust the 846 code and stop obsessively checking WMR every few hours. Thanks everyone for sharing your experiences - this community is so helpful for first-time filers like me who don't know what's normal!

Worth noting that if you do qualify for TTS, you'll need to make quarterly estimated tax payments on your trading income. This includes both income tax and self-employment tax. I got hit with an underpayment penalty my first year because I didn't realize this.

Great discussion here! I'm in a similar situation as a crypto day trader and wanted to share what I've learned from my CPA about TTS qualification. The key factors they emphasized were: 1. **Frequency and regularity** - You need to trade on a substantial, regular, and continuous basis. Your 20-50 trades per week sounds like it could qualify, especially if you're doing this consistently throughout the year. 2. **Time commitment** - The "substantial" requirement typically means spending several hours daily on trading activities, including research and analysis (not just executing trades). 3. **Intent to profit from short-term price movements** - This is crucial for crypto traders since you need to show you're trading to capture market swings, not holding for long-term appreciation. One thing I learned is that you should start keeping detailed records NOW if you plan to claim TTS for 2025. Document your daily trading time, maintain separate accounts for trading vs. investment activities, and keep receipts for all business expenses. The IRS scrutinizes TTS claims heavily, especially for newer asset classes like crypto. Also consider consulting with a tax professional who has experience with crypto TTS claims before making the election. The self-employment tax implications can be significant, so you want to make sure the Schedule C deductions outweigh that additional tax burden in your specific situation.

Has anyone used a variable premium approach? My accountant suggested structuring the SCIN with a premium that adjusts over time based on remaining life expectancy. He said this might be more defensible than a single fixed premium, especially for longer-term notes.

Great discussion everyone! As someone who recently went through this process with my elderly father, I wanted to add a few practical points: First, timing is crucial. We made the mistake of waiting until my dad was 72 to start exploring SCINs, and by then the required premium was quite high due to his age. If you're considering this strategy, don't wait too long - the younger you are when you establish the SCIN, the lower the premium needs to be. Second, consider the impact on your beneficiaries' basis step-up. With a SCIN, if you die before it's fully paid, your heirs don't get a stepped-up basis in the transferred asset. This could mean higher capital gains taxes for them later. Make sure to factor this into your overall estate planning strategy. Finally, document everything meticulously. We kept detailed records of all appraisals, actuarial calculations, medical records (even routine checkups), and the reasoning behind our premium methodology. When the IRS eventually reviewed the transaction after my father passed two years later, having that comprehensive documentation made the audit process much smoother. The peace of mind was worth the extra cost and complexity. Just make sure you work with professionals who really understand SCINs - not every estate attorney is equally experienced with them.