I went through this exact same situation with HSA Bank last year and it's incredibly frustrating that they don't help with the calculation. Here's what I learned: Since your excess contribution happened on December 30th, you're actually in a pretty good position - there's only been 2 days for any gains/losses to accumulate. The fact that the calculator is showing less than your $82.49 excess means your HSA investments had a small loss during those two days. You should definitely withdraw the calculated amount (not just the $82.49). The IRS requires you to remove the excess contribution adjusted for any proportional gains or losses. In your case, the loss actually works in your favor since you'll withdraw slightly less than what you contributed. Make sure to: 1. Request that HSA Bank code this as an "excess contribution removal" on your 1099-SA 2. Complete the withdrawal before you file your 2024 taxes 3. Be prepared for HSA Bank's $25 processing fee Since you haven't filed your 2024 taxes yet, you're well within the deadline and won't need to worry about the 6% excise tax or Form 5329 as long as you handle this promptly.

I just went through this exact same mess with HSA Bank a few months ago - they're absolutely terrible at helping customers with these calculations! The good news is that since your excess happened so late in the year (December 30th), you're dealing with minimal earnings/losses. Here's what you need to know: If the calculator is showing a withdrawal amount less than your $82.49 excess, that means your HSA investments had a small loss during those final two days of the year. This actually works in your favor - you only need to withdraw the calculated amount, not the full excess. The IRS formula is: (Excess Contribution) × (Net Income ÷ Fair Market Value). Since your account value dropped slightly, the "Net Income" part is negative, reducing your required withdrawal. Make sure to: - Request HSA Bank code this as "excess contribution removal" - Get it done before filing your 2024 taxes - Budget for their annoying $25 processing fee Since you're handling this in January and haven't filed yet, you're well within the deadline and won't face the 6% excise tax. The withdrawal will show on a 2025 1099-SA but corrects your 2024 contribution limit issue.

While you're waiting to get home, it might be worth checking your IRS account online. You can create one at irs.gov/account and it shows any outstanding balances, notices sent, and payment plans. Might give you some peace of mind without having to open the letter.

Glad to hear it turned out to be good news! This is actually a great reminder for everyone - the Bureau of the Fiscal Service handles both incoming AND outgoing payments, so their letters aren't always bad news. That Philadelphia address is indeed commonly used for refund notifications and treasury payments. For future reference, you can usually tell the difference by looking at the envelope itself - collection notices typically have more urgent language like "IMPORTANT TAX NOTICE" or "FINAL NOTICE" prominently displayed, while refund notifications are usually more neutral in their presentation. Your experience is pretty common - the IRS does periodic reviews and sometimes catches deductions or credits that taxpayers missed, especially when tax laws change retroactively. Enjoy that unexpected $843!

Just to add some clarity here - there's an important distinction between state taxes WITHHELD from your paycheck versus additional state taxes you PAY when filing. 1. Taxes withheld from paychecks throughout the year are deductible on that same year's federal return 2. Additional taxes paid when filing (like your $650) are deductible in the year you actually paid them So if you paid that $650 in April 2024 for your 2023 state taxes, you'd deduct it on your 2024 federal return that you file in 2025. Hope that helps!

Don't forget you need to keep track of these payments yourself!! I learned this the hard way. TurboTax doesn't automatically know about that check you wrote to your state last year. You have to manually enter it when you get to the itemized deductions section. Same goes for any estimated state tax payments you made. Keep records of EVERYTHING because it's super easy to forget by the time next tax season rolls around.

Don't forget that you might be able to get a credit in one state for taxes paid to the other, which could reduce the impact of this issue. Most states offer a credit for taxes paid to other states to avoid double taxation on the same income. When I had a similar issue, I still had to file in both states but ended up getting most of my money back through the credit system. Might not be the same in your case, but worth looking into!

I've been through this exact situation and wanted to share what worked for me. The key is understanding that your W-2 state allocation isn't set in stone - it's just your employer's best estimate based on their records. Here's what I did: I created a detailed log showing exactly which days I worked in each state (including any travel days), gathered supporting documents like lease agreements and utility bills with service dates, and filed as a part-year resident in both states. Most importantly, I included a brief explanation letter with my returns explaining why my allocation differed from the W-2. The process was smoother than I expected. State B (my new state) actually has a specific worksheet for situations like yours where the W-2 allocation doesn't match your actual work location. I ended up saving about $400 in state taxes. One tip: if you have any emails or calendar entries showing your work locations throughout the year, save those as backup documentation. The states care more about where you actually performed the work than what your employer reported, but they want to see that you can prove it.

Just to add another perspective - I had a similar situation but with a bigger loss ($8,000) in 2024 when my income was only about $25,000. My accountant explained that the way it works is: 1. Capital losses first offset capital gains (I had none) 2. Then up to $3,000 can offset ordinary income (which happened on my Line 9) 3. But since that $3,000 reduction didn't actually reduce my tax (I was still under the standard deduction), I get to carry over the full $8,000 to 2025 So in your case, you definitely have a $520 carryover to use this year. The software is right!

Something important that nobody's mentioned yet - make sure you're filling out Form 8949 and Schedule D correctly this year! You'll need to report your capital loss carryover on Schedule D line 6 if it's a short-term loss or line 14 if it's a long-term loss. You don't need to list it again on Form 8949. I messed this up last year and included my carryover loss on both forms, which confused the IRS and resulted in a letter asking for clarification. Don't make my mistake!