Just to add something practical - having an EIN for my Etsy shop while keeping my tutoring income under my SSN has made bookkeeping so much easier! I have separate bank accounts for each "business" and can clearly track expenses. Before that I had everything mixed together and tax time was a nightmare trying to sort which expenses went with which income stream.

The separate bank accounts approach that Mary mentioned is absolutely crucial! I learned this the hard way when I had both my freelance web design income (EIN) and my part-time delivery driving (SSN) all going into the same account. Come tax time, I spent weeks trying to untangle which expenses belonged to which income stream. Now I have a dedicated business checking account for my web design LLC and keep my delivery income in my personal account. It makes filling out the separate Schedule Cs so much cleaner. Plus, if you ever get audited, having that clear separation between your different income sources looks much more professional to the IRS. One tip: even if you don't get an EIN right away, you can still open a separate checking account using your SSN and a "doing business as" (DBA) name for your craft business. That way you can start building good financial habits before you decide whether to form an LLC.

Pro tip: take screenshots of all your important docs next time you log in. learned that the hard way

Have you tried clearing your browser cache and cookies? Sometimes that helps with login issues. Also make sure you're using the correct URL - there are some fake Spruce sites out there that look legit but aren't. The real one should be through your tax preparer's portal or the official IRS link.

Wait I'm still confused. If the employer already determined this was non-taxable income and didn't include it on the W2, does OP need to do anything on their tax return? Do they need to report the reimbursement somewhere even if it's ultimately not taxable?

Based on everything discussed here, it sounds like your employer handled this correctly and you can file your return using the W2 as-is. The fact that they specifically labeled it "Educ Reimb Non-Taxable" on your paystub shows they made a deliberate determination that your MBA qualifies as a working condition fringe benefit. Since you're already in management and the MBA enhances those existing skills rather than qualifying you for a completely different position, this appears to be the right classification. Your tax attorney professor's experience with similar cases being successfully defended in audits is also reassuring. The key now is documentation. Make sure you keep copies of your job description, MBA course catalog showing how the coursework relates to your management duties, your employer's tuition reimbursement policy, and any approval emails or forms. This will be crucial if the IRS ever questions the classification. You don't need to report the reimbursement anywhere on your tax return since it's already been excluded from your W2. Just file normally and keep those records safe!

Has anyone gotten their refund yet who filed with this Form 8889 issue? I filed on Feb 1, got accepted Feb 3, but wondering if these "not final" form issues might delay the actual refund processing.

I went through this exact same panic last year! Filed early with TurboTax and saw that scary "DO NOT FILE FORM NOT FINAL" watermark on my Form 8889. I was convinced I'd messed something up and would need to file an amendment. Here's what I learned after calling TurboTax support (and later confirming with the IRS): The PDF you download is essentially a "preview" of your return that gets generated when you're preparing it. If Form 8889 wasn't finalized yet when you were working on your return, that's the version that appears in your downloadable PDF. However, when TurboTax actually transmits your return to the IRS, their system automatically uses the most current, finalized version of all forms - not the draft versions you might see in your PDF. The key thing to check is your e-file status in TurboTax. If it shows "Accepted by IRS," you're completely fine and don't need to do anything. The IRS received your return with proper, finalized forms even though your PDF shows the draft watermark. I know it's nerve-wracking, but this is actually pretty common during the early filing period when some forms are still being finalized by the IRS. You're not the first person to experience this and you won't be the last!

Another thing to consider is that an Apple Watch is considered a "listed property" by the IRS because it has potential for personal use. That means you need more stringent documentation for business use percentage. Consider keeping a log for at least 90 days showing how you use it for business vs. personal.

Don't forget you'll need to file Form 4562 for depreciation and amortization. If you're using software like TurboTax or HR Block they'll walk you through it, but if you're doing it yourself make sure you include this form.