Just a heads up that there's a small grace period for correcting excess HSA contributions! If you realize you over-contributed (like OP did by $25), you can withdraw the excess amount plus any earnings on that amount by your tax filing deadline (including extensions) to avoid the 6% excess contribution penalty. Be sure to tell your HSA administrator that you're withdrawing an excess contribution so they code it properly. Otherwise, you might get hit with the 20% non-qualified distribution penalty too!

This is a great discussion! I went through something very similar last year with my HSA premium pass through. The key thing that finally clicked for me is that Form 8889 is designed to track ALL HSA contributions (employer and employee) to ensure you don't exceed the annual limits. Here's what I learned from my tax preparer: **Line 2 is ONLY for contributions you made directly** - like writing a check to your HSA provider or making online transfers from your bank account. It's NOT for payroll deductions or premium pass throughs. **Line 3 captures employer contributions** - this includes premium pass throughs, even though they feel like "your" money since they reduce your premium costs. The reason TaxSlayer is asking if you made contributions "NOT through an employer" is to distinguish between Line 2 vs Line 3 reporting. Since your premium pass through comes from your insurance company (which the IRS treats as an employer-type contribution), it belongs on Line 3. Your $25 overcontribution is actually pretty common - many people forget that premium pass throughs count toward the annual limit when planning their payroll deductions. Definitely follow Andre's advice about withdrawing the excess!

If I was in your shoes, I'd consider starting up the business again for real this time, maybe using some of the same equipment or concept. Wouldn't that give you a legit reason to claim some of those costs as part of the "new" startup phase?

Unfortunately, you're likely out of luck for claiming those 2017 startup costs against your current tax liability. The IRS has strict rules about when business expenses can be deducted, and there's generally a 3-year statute of limitations for amending returns to claim missed deductions. Since your wife's business never filed any Schedule C returns and has been inactive since 2018, the IRS would view this as an abandoned business venture rather than an ongoing concern. You can't carry forward unclaimed business expenses from a defunct business to offset current year W-2 income - business losses can only offset business income or be carried forward within the same continuing business entity. Your best bet at this point would be to look for legitimate current-year deductions you might have missed, or consider whether either of you could start a side business this year that would allow for legitimate business deductions going forward. But those old 2017 costs are unfortunately beyond the reach of current tax planning.

anyone else notice indiana is way faster this year compared to last? used to take like 2 weeks minimum

Just to add another data point - mine took exactly 4 business days last month. Indiana's system usually processes overnight so you'll likely see it first thing in the morning when it hits. Try to check before 6am if you're really anxious about it!

Pro tip: if you can pay off the full amount within 120 days, you can set up a short-term payment plan online without having to talk to anyone. Might be worth looking into if your balance isn't too high.

Just went through this process last month! Here's what helped me prepare: 1. Have your last 3 months of bank statements ready - they'll want to see your actual financial situation 2. Calculate a realistic monthly payment BEFORE you call (I used 20% of my take-home pay as a starting point) 3. Write down your monthly expenses beforehand so you don't forget anything important during the call 4. If you qualify, ask about Currently Not Collectible status - saved my friend when she was between jobs The agents are actually pretty reasonable if you're upfront about your situation. Don't oversell what you can afford just to get them off the phone faster. You got this! 💪

Has anyone actually gotten audited for making a mistake on Form 4797? I'm in a similar situation and honestly considering just claiming the full loss because its confusing and the odds of getting audited seem so low.

I've been through a similar situation with a totaled delivery vehicle. One important detail that hasn't been mentioned yet - if you received any insurance payout for the vehicle, that needs to be factored into your Form 4797 calculation too. The loss isn't just (original cost - salvage value). It's actually (adjusted basis - total amount received), where "total amount received" includes both the salvage yard payment AND any insurance money you got. So if you got insurance money on top of that $375 from the salvage yard, your actual loss would be smaller. Make sure you're including all proceeds when calculating the loss on Form 4797, not just what the salvage yard paid you. Also agreeing with the tax preparer above - if you've been using standard mileage deduction, you can't claim this loss at all on Form 4797. The depreciation component is already baked into that 65.5 cents per mile rate you've been claiming.