Hey Ben! I totally get the anxiety - I went through the exact same thing a few weeks ago. Like others mentioned, "Notice issued" usually just means they're sending you paperwork about some kind of adjustment or review. Since you claimed EIC, it's probably just their standard verification process. The good news is that your return is actually moving through the system rather than being stuck in limbo. Most of the time these notices are pretty routine - could be anything from verifying your income to a small calculation adjustment. Try to stay calm until you get the actual notice in the mail, then you'll know exactly what they need from you. Hang in there! 💪

Hey Ben! I completely understand your anxiety about this - I was in your exact shoes about 3 months ago. Got the dreaded "Notice issued" on my transcript and immediately thought the worst. Turns out it was just a CP05 notice asking me to verify some information since I also claimed EIC. The whole process took about 6-8 weeks but I eventually got my full refund. The waiting is honestly the hardest part, but try to remember that "Notice issued" means they're actually working on your case rather than it just sitting in a pile somewhere. Keep checking your mailbox and once you get the notice, it'll tell you exactly what they need. Most of the time it's way less scary than we imagine it to be! Hang in there - you've got this! 🙏

Has anyone actually looked closely at Form 8889, especially Line 14a and 14b? Line 14a is where you put the total distributions, and 14b is where you put the qualified medical expense portion. If the entire distribution was used for qualified medical expenses, the taxable amount on Line 16 would be zero. Honestly, missing this form when the result is zero added tax is pretty low-risk, but if you're worried, I'd recommend using free fillable forms to complete just Form 8889 yourself. It's not that complicated if you have your 1099-SA and medical receipts. Then file another 1040-X and attach the 8889.

I went through something very similar with my HSA distributions last year. After reading everyone's advice here, I'd strongly recommend filing the second amendment to include Form 8889, even though it won't change your tax liability. Here's why: The IRS absolutely does match 1099-SA forms to tax returns through their automated systems. Even if there's no tax impact, missing forms can trigger CP2000 notices months later. I know Elliott mentioned getting one for a similar situation - it's not fun to deal with even when you have all the documentation. Since your CPA missed including this form on your amended return, they should definitely help fix it without charging you additional fees. This was their oversight, not yours. I'd approach them with that expectation. If you decide to go the DIY route, Form 8889 isn't too complex for a straightforward qualified distribution like yours. You'll report the $3,500 on Line 14a (total distributions), the same amount on Line 14b (qualified medical expenses), which should result in zero taxable distribution on Line 16. Just make sure you keep all those medical receipts organized in case of future questions. The peace of mind from proper reporting is worth avoiding potential IRS correspondence later. Good luck!

As someone who's been doing my own taxes for years, I have to say that Excel spreadsheets like this one can be incredibly valuable learning tools! I've seen too many people just plug numbers into software without understanding what's actually happening with their taxes. A few things I always recommend when using any DIY tax solution: First, keep meticulous records of where you got each number - it makes audits much less stressful if they ever happen. Second, don't be afraid to cross-reference your results with one of the free filing options like IRS Free File just to double-check your work the first year you try something new. The transparency aspect is huge - being able to see exactly how your deductions flow through to your final tax liability helps you make better financial decisions throughout the year. I've helped several family members transition from expensive tax software to spreadsheet-based approaches, and they all say the same thing: they finally understand their taxes instead of just accepting whatever number the computer spits out. For anyone on the fence about trying this approach, remember that you can always prepare your return multiple ways and compare the results before filing. The IRS doesn't care how you calculated your taxes as long as the math is correct!

I'm really intrigued by all the positive experiences people are sharing about this Excel 1040 spreadsheet! As someone who's been using TurboTax for years and getting increasingly frustrated with the rising costs, this sounds like exactly what I need. My tax situation is fairly straightforward - W-2 income, some investment dividends, and the usual deductions like mortgage interest and charitable giving. But I've always felt like I was just blindly entering numbers without really understanding how it all fits together. The educational aspect really appeals to me. I'd love to actually understand why my tax liability changes when I adjust my 401k contributions or when I have capital gains. It sounds like this spreadsheet would let me experiment with different scenarios and see the immediate impact. One question for those who've made the switch - how much time does it typically take compared to using commercial software? I'm willing to invest more time upfront if it means better understanding and long-term savings, but I'm curious about the learning curve for someone who's never done taxes manually before. Thanks for sharing this resource - I'm definitely going to check it out for this tax season!

Don't forget to check with your state tax agency too! Some states have their own free file programs separate from the federal ones. I'm in California and they have CalFile which is completely free for state filing regardless of income, and it accepts unemployment income. Saved me $39 on state filing fees and was actually easier to use than the paid services.

Just wanted to add another option that worked great for me last year - TaxSlayer through the IRS Free File program. I had a W-2, 1099-G from unemployment, and some student loan interest deduction, and it handled everything for free (federal filing). The key thing is making sure you access it through the official IRS Free File portal like others mentioned. When I went directly to TaxSlayer's website, they wanted to charge me, but through the IRS portal it was completely free for my income level. One thing I liked about TaxSlayer is that it walks you through each form step-by-step and explains what each line means in plain English. Super helpful when you're dealing with unemployment tax situations for the first time. Definitely worth checking out as another free alternative!

I created an LLC for my freelance coding work last year and it's definitely made taxes more confusing. Does anyone have recommendations for tax software that handles LLCs well? I tried using H&R Block online but got totally stuck when trying to enter business expenses.

Having gone through this exact decision myself, I'd say for a $15k side gig, you're probably better off staying as a sole proprietor for now. The LLC won't provide any tax benefits at that income level - you'll still pay the same self-employment taxes and file Schedule C either way. The main advantage of an LLC is liability protection, but you need to weigh that against the ongoing costs and complexity. In Illinois (where you mentioned you're located), you'd pay $150 annually just to maintain the LLC, plus potentially higher tax prep fees. My recommendation: Start as a sole proprietor, get comfortable with the 1099 tax process first, and then consider forming an LLC if your contract income grows significantly. Make sure you're tracking all your business expenses properly - that's where you'll see real tax savings regardless of your business structure. Also, don't forget about quarterly estimated taxes! With $15k in additional income, you'll likely need to make quarterly payments to avoid penalties.