I'm dealing with a similar situation right now - had no idea about the Medicaid/HSA conflict until my tax preparer caught it. One thing that really helped me was getting exact dates from both my Medicaid office and my HSA administrator showing when contributions were made versus when I had coverage. My HSA provider was actually really helpful once I explained the situation. They walked me through the excess contribution withdrawal process and even waived their usual processing fee since it was due to overlapping coverage confusion. The key is being proactive about it - they said they see this mistake all the time and it's much easier to fix when you catch it yourself rather than waiting for the IRS to flag it. Also, make sure to keep copies of everything when you do the withdrawal. You'll need documentation showing the withdrawal amount and that it was due to ineligible contributions, not just a regular distribution. This protects you if there are any questions later about why you withdrew money from your HSA.

This is exactly the kind of situation that catches so many people off guard! I work in benefits administration and see this confusion frequently. The key thing to understand is that Medicaid is considered "other health coverage" under IRS rules, which automatically disqualifies you from HSA contributions during any month you have both. Here's what I'd recommend doing immediately: First, contact your HSA administrator to request an "excess contribution withdrawal" for the $600 plus any earnings. Most providers have a specific form for this - explain that you had disqualifying coverage (Medicaid) during the months you contributed. Second, get written documentation from your state Medicaid office showing your exact coverage dates. You'll need this for your tax filing. The good news is that if you withdraw the excess contributions before your tax filing deadline (including extensions), you'll only pay regular income tax on the withdrawn amount and avoid the 6% annual penalty. Once you resolve your coverage situation - either by ending Medicaid or dropping the HDHP - you can start contributing again for any remaining eligible months in the year. Don't beat yourself up about this - the rules aren't clearly explained and many people make this mistake. The important thing is fixing it quickly now that you know about it.

I've been following this thread and want to add one more perspective that might be helpful for future reference. If you ever need to change your LLC's tax status in the future, it's important to know that Form 8832 has specific deadlines - you generally need to file it within 75 days of forming your LLC to have the election be effective from the beginning. If you file it later, the election typically becomes effective on the date you file (not retroactively). This is another reason why you would definitely remember filing it - there are timing considerations that any professional would have discussed with you. Since you've been operating for 8 months and filing Schedule C, you're clearly established as a disregarded entity, which is perfectly fine for most single-member LLC owners. It keeps things simple - you just report business income and expenses on Schedule C, and your clients issue 1099s to your personal name/SSN. The fact that your client is asking about this shows they're being responsible about their 1099 reporting, which is great. You can confidently tell them Category 2, and keep doing exactly what you've been doing tax-wise!

This has been such a comprehensive and helpful discussion! As someone who's also navigating the LLC world, I really appreciate how everyone broke down the key indicators that point to Category 2 status. The consensus is clear: if you've been filing Schedule C with your personal tax return, that's the definitive proof that your LLC is operating as a disregarded entity (the default status). Form 8832 is specifically for changing FROM this default TO corporate tax treatment, and it's not something that happens accidentally or without your knowledge. A few key takeaways for anyone else in this situation: - Default = disregarded entity (Schedule C filing) - Form 8832 = active election to change to corporate treatment - No memory of filing + no IRS acceptance letter + Schedule C history = definitely Category 2 - For 1099s: use your personal name and SSN, not LLC name and EIN While calling LegalZoom for final confirmation is smart, you already have all the evidence you need. Your client should issue the 1099 to you personally since your LLC is a disregarded entity for tax purposes. Thanks to everyone who shared their experiences and verification methods - this thread is going to be so helpful for other single-member LLC owners facing the same confusion!

As someone who went through a similar situation as an international student, I want to emphasize that you should definitely consult with your university's international student services office before proceeding with any business activities. The visa compliance issue that @Amara Chukwu mentioned is extremely serious and could jeopardize your student status. Many international students don't realize that even passive income or online sales can be considered "employment" under immigration law. Some universities have entrepreneurship programs or can help you apply for CPT authorization that might cover your photography business if it's related to your field of study. For the tax side, yes you'll need to file Form 1040-NR and report the income, but make sure you're legally allowed to earn that income first. The IRS and immigration services do share information in certain circumstances, so you want to be compliant on both fronts. Also keep detailed records of all your photography expenses (equipment, software, travel costs for shoots, etc.) as these can be deducted against your income. And definitely use your US address for all tax communications - the IRS won't send anything to your home country unless you specifically list that as your address.

For international students on F-1 visas, tax filing requirements can be complex but manageable with the right approach. You'll definitely need to file taxes on that photography income - even $300-400/month puts you well over the $400 threshold for self-employment income reporting. A few key points to address your concerns: **Privacy Protection**: The IRS will only send correspondence to the address you provide on your tax return. Always use your current US address, and consider setting up an IRS online account for electronic notifications. No tax documents will automatically go to your home country. **Required Forms**: As a nonresident alien (which you likely are in your first 5 years), you'll file Form 1040-NR with Schedule C for your self-employment income. You'll need either an SSN or ITIN. **Deductions**: Keep detailed records of business expenses - camera equipment, editing software, travel costs for photo shoots, etc. These can significantly reduce your taxable income. **Critical Warning**: Before proceeding, definitely check with your university's international student office about visa compliance. F-1 students have strict limitations on off-campus work, and online sales might require CPT or OPT authorization to be legal under immigration law. The tax part is straightforward once you understand the requirements, but visa compliance should be your first priority. Getting this wrong could jeopardize your student status regardless of proper tax filing.

One thing that might help clarify the calculation is to think about it this way: out of your $26,800 current portfolio value, your original investment (cost basis) is $13,500, so your total unrealized gain is $13,300. When you sell $6,700 worth of stock, you're selling about 25% of your holdings ($6,700 ÷ $26,800). If you use the average cost method, roughly 25% of your cost basis ($13,500 × 0.25 = $3,375) would be considered the "cost" portion of your $6,700 sale, and the remaining $3,325 would be your taxable capital gain. However, the specific method your broker uses matters a lot! I'd recommend calling them before you sell to ask which method they use by default and whether you have options to choose. Since you've been investing for over a decade, you'll likely qualify for long-term capital gains rates on most of your shares, which is much more favorable than short-term rates. Your broker should handle all the calculations and provide the details on your 1099-B, but understanding the basics helps you make better decisions about which shares to sell!

Just wanted to add something that helped me tremendously when I was in a similar situation - make sure to check if your brokerage offers tax-loss harvesting opportunities when you're selling. Sometimes you might have other positions that are currently at a loss that you could sell simultaneously to offset some of your capital gains. For example, if you're going to realize a $3,000 gain from selling your profitable stocks for the home repairs, but you have another stock that's currently down $1,500, you could sell both and only pay taxes on the net $1,500 gain. Just be careful about the wash sale rule - you can't buy back the same security within 30 days or the loss won't count. This strategy can significantly reduce your tax burden, especially if you have a diversified portfolio with some winners and losers. Your brokerage might even have tools to help identify these opportunities automatically. Worth exploring before you make your sale!

Just a heads up for anyone still looking - if you moved during the year and had marketplace coverage in different states, you might need 1095-A forms from multiple marketplaces! I learned this the hard way when I moved from California to Texas mid-year. Had to log into both Covered California and the federal marketplace to get both forms. Something to keep in mind if your situation was similar!

Pro tip: if you're having trouble accessing your healthcare.gov account (forgot password, security questions, etc.), you can also call the marketplace customer service and they can mail you a paper copy of your 1095-A. It takes longer but it's a good backup option if you're locked out of your online account. They'll verify your identity over the phone and send it to your address on file. Just make sure to give yourself enough time before the tax deadline!