This happened to me too! Check if you received cost sharing reductions (CSR) with your plan. If you had a Silver plan with cost sharing reductions but your final income came in above the CSR threshold, you might lose those reductions even though you still qualify for premium tax credits. This doesn't affect the premium itself but could explain why your refund changed. Also, make sure TurboTax didn't accidentally check the "married filing separately" box which makes you ineligible for premium tax credits in most cases.

I've seen this exact issue several times, and it's usually related to the benchmark plan calculation when you move states mid-year. Since you moved from Nebraska to Colorado in June but kept your Nebraska marketplace plan, the system needs to calculate different benchmark premiums for each state period. Here's what likely happened: Your 1095-A shows the advance premium tax credits you received based on Nebraska's benchmark plans for the full year. But for tax purposes, once you moved to Colorado, the calculation should use Colorado's benchmark plan costs for June-December. Colorado likely has different (possibly higher) benchmark premiums than Nebraska, which would reduce your allowable premium tax credit for those months. The good news is this can often be corrected. In TurboTax, when you're completing the ACA section, make sure to indicate that you moved during the year AND that this move affected your marketplace coverage. This should trigger the "alternative calculation for year of move" option on Form 8962. You'll need to enter separate benchmark amounts for your Nebraska period (Jan-May) and Colorado period (June-Dec). If TurboTax isn't offering this option, you might need to override the automatic calculation and manually complete Form 8962 using the worksheets in IRS Publication 974. The key is getting the correct benchmark premium amounts for each state during your respective residency periods.

Just a heads up, the IRS might consider this a hobby rather than a business if you never had income or customers. I tried to deduct expenses for my photography "business" a few years ago and got audited because I had no income for 2 years.

I was in a very similar situation when I started my CPA practice! The key distinction here is that you had legitimate business intent before circumstances changed due to your employment situation. This isn't a hobby case at all. You should definitely be able to claim these as startup costs under IRC Section 195. Since you invested with genuine profit motive and only stopped due to employment restrictions (not lack of interest), you can deduct up to $5,000 in startup expenses in the first year, with any remaining amount amortized over 15 years. Make sure to document everything: your original business plan, any research you did, receipts showing business intent, and especially your new employer's policy that prevented you from continuing. The IRS looks favorably on situations where external circumstances (like employment contracts) prevent business operations. One tip: If you think you might resume this business after leaving your current job, keep all your documentation. You could potentially carry forward unused startup costs to future tax years when the business becomes active.

2 Make sure you keep ALL your receipts and documents! I did some independent contracting last year and got audited because I claimed a home office deduction without proper documentation. What a nightmare!

Great question! As a fellow independent contractor, I'd strongly recommend setting aside 25-30% of your gross income for taxes. This covers both federal income tax and the dreaded self-employment tax (15.3% for Social Security and Medicare). Since you're new to this, definitely look into making quarterly estimated tax payments if you expect to owe more than $1,000. The IRS penalties for underpayment can add up quickly! For deductions, you're in a great position as a swim instructor. Definitely track your mileage - use the standard mileage rate (currently around $0.67/mile for 2024). Keep a detailed log of every trip to clients' homes. Other deductions to consider: swim equipment, certifications, liability insurance, phone usage for scheduling, and even a portion of your internet if you use it for business communications. One tip: open a separate business checking account and credit card. It makes tracking expenses so much easier come tax time. Also consider getting a simple mileage tracking app - MileIQ or similar services can save you hours of manual record-keeping. Don't forget about the Qualified Business Income (QBI) deduction either - you might be able to deduct up to 20% of your business profit!

Just went thru this! That taxr.ai tool someone mentioned above is actually legit - told me exactly when my 420 would clear and it was spot on. Way better than waiting on hold with IRS for hours

Code 420 can be frustrating but hang in there! I'd recommend calling the Practitioner Priority Service line if you have a tax pro helping you, or try calling early morning (7-8am) for shorter wait times. Also keep checking your transcript weekly - sometimes the codes update before you get any mail. The fact that you only had W2 and child tax credit makes it likely just a routine verification that should clear up relatively quickly.

Just to share my experience - I submitted a W8-BEN to my US publisher without them asking, and they had no idea what to do with it! They literally emailed me back asking what department should handle it. Their accounting team finally figured it out, but it was clear they'd never dealt with international authors before even though they were distributing my work in the US. Sometimes these smaller companies just don't know their obligations.

This is such a common issue with smaller US distributors and publishers! I'm a tax professional who specializes in international artist taxation, and I see this scenario constantly. You're absolutely right that under the US-Ireland tax treaty, royalties are generally exempt from US withholding tax (0% rate), but the W8-BEN documentation requirement still applies regardless of the treaty rate. Here's the key point: as an Irish resident receiving royalty income that's treaty-exempt, you're typically NOT required to file a US tax return even if the payer fails to collect proper documentation. The filing obligation generally falls on US persons or when you have US-source income that's actually subject to tax. However, I'd strongly recommend proactively sending them a completed W8-BEN form anyway. This protects you by establishing your treaty position on record, especially as your royalties grow. Include a brief cover letter explaining that this establishes your eligibility for treaty benefits under Article 12 of the US-Ireland tax treaty. If they continue to mishandle things, keep records of your attempts to provide proper documentation. This creates a paper trail showing your good faith compliance efforts, which could be valuable if any questions arise later. The distributor could face penalties for not collecting required forms, but that's their problem, not yours!