I'm so confused about HSA contribution limits. If I have family coverage for part of the year and then switch to individual coverage, how do I calculate my limit? Is it prorated somehow? Also, does anyone know if the HSA trustee reports the excess contribution to the IRS? Or is it only if you report it yourself when you file?

Just wanted to add my experience since I went through this exact situation last year! I also had the job change mid-year and exceeded my HSA contribution limit without realizing it. One thing that really helped me was keeping detailed records of everything - the original excess contribution, the withdrawal request, confirmation from the HSA provider, and all the tax forms. When I filed my taxes, having everything organized made it much easier to complete Form 8889 and Form 5329 correctly. Also, don't forget to check if your HSA provider charged any fees for processing the excess contribution withdrawal. Mine charged a $25 processing fee, which was annoying but still way better than paying the 6% excise tax every year if I had left the excess in the account. The key thing is you caught it relatively quickly and took action. Many people don't realize the mistake for years and end up paying that 6% penalty repeatedly. You're definitely on the right track!

One thing nobody mentioned yet - make sure your US bank account doesn't have minimum balance requirements or monthly fees if you're planning to keep it open after you leave! I got hit with like $150 in fees because I left just $300 in my account and apparently needed $1500 to avoid the monthly fee. Also, depending on your home country, check if you need to report foreign bank accounts to YOUR country's tax authority too. Not just the US side of things.

Just went through this exact situation 6 months ago with my J1 visa! Here's what I learned the hard way: For the $4,800 amount, you're actually fine carrying cash without formal declaration (under $10K threshold), but I'd still recommend against it for safety reasons. I ended up using a combination approach that worked really well. I used Wise for the bulk of my money ($4,200) - total fees were around $35 with great exchange rates. Then I carried about $600 in cash for immediate expenses when I landed. This gave me the best of both worlds: most money transferred safely at low cost, plus some immediate liquidity. One crucial tip: if you're keeping your US bank account open even temporarily, make sure you understand the reporting requirements for foreign accounts in your home country. Some countries require you to report ANY foreign account regardless of balance. Also, close the account properly when you're done - don't just let it sit empty and rack up fees. The whole process was way less scary than I thought it would be once I had the right information!

Has anyone here had to deal with state taxes in this situation too? I'm in a similar boat (leaving H1B, still resident alien for federal) but not sure if I need to file as part-year resident for my state or what.

This is such a complex situation, and I really appreciate everyone's detailed responses! I'm in a somewhat similar position - was on F1 OPT status and then moved back to my home country, but I'm still trying to figure out if I meet the substantial presence test for my tax year. One thing that's been confusing me is the timing of when to file Form 2350. Should this be filed by the regular tax deadline (April 15th), or can it be filed later? And if you file the extension but then realize you don't actually qualify for either the physical presence or bona fide residence test, what happens then? Also, for those who used the online tools mentioned (taxr.ai) - did it help you calculate whether you actually meet the substantial presence test? That calculation seems tricky with all the different weightings for different years, and I want to make sure I'm doing it right before deciding between resident alien vs non-resident alien status.

PSA: These codes can change during processing! Don't panic if yours switches - totally normal in 2025 with the new AI processing system they implemented

This is super helpful! I've been checking my WMR obsessively and my cycle code is 20250302 - so if I'm reading this right, I'm on daily updates? Still waiting for my 846 code to show up but at least now I know what to expect. Thanks for breaking this down in simple terms! 🙏

Has anyone actually calculated how much this "double taxation" costs us? I make about $85k and pay roughly $6500 in FICA taxes. If I could deduct that amount, at my tax bracket (22%), that would save me $1430 per year. That's significant money!

I completely understand your frustration - this has bothered me for years too! What helped me wrap my head around it is realizing that payroll taxes and income taxes serve fundamentally different purposes, even though they both come out of our paychecks. The key insight is that payroll taxes are more like mandatory insurance premiums than traditional taxes. You're not just paying the government - you're earning credits toward future Social Security benefits and Medicare coverage. The amount you eventually receive in benefits is directly tied to how much you paid in over your working years. If payroll taxes were deductible, it would essentially mean getting a tax break on money that's going into an account with your name on it (even if it's administered by the government). That's why they're treated separately from income taxes, which fund general government operations you may never directly benefit from. That said, I totally get why it feels unfair when you're looking at your paycheck! The lack of immediate tax benefit definitely stings, especially when you're already dealing with income tax on top of it.