I think there's definitely some confusion here about the line numbers. I just completed the Jennifer Taxpayer practice exam yesterday and can confirm that in the current version, you're asked about line 2b for taxable interest, not line 15. For anyone still working on this: the $1,250 from savings account interest plus the $875 from the Capital One 1099-INT should total $2,125 and go on line 2b. Any tax-exempt municipal bond interest would go on line 2a instead. It sounds like some people might be working with an older version of the practice exam that references outdated line numbers. I'd recommend downloading the most current version from Intuit's website to avoid this confusion. The actual 2022 Form 1040 has taxable interest on line 2b, and that's what the updated practice exam should be testing.

I'm so glad I found this thread! I was having the exact same issue with the Jennifer Taxpayer practice exam and getting really frustrated. After reading through all these responses, I realize I was making two mistakes: 1) I was looking at an older version of the practice exam that referenced line 15 instead of line 2b, and 2) I was accidentally including some tax-exempt municipal bond interest in my taxable interest calculation. Just to confirm for anyone else still struggling - on the current 2022 Form 1040, taxable interest goes on line 2b (not line 15), and for Jennifer's scenario it should be $1,250 + $875 = $2,125. The tax-exempt interest from municipal bonds goes separately on line 2a. Thanks everyone for sharing your experiences with the different tools and resources too. It's really helpful to know there are options like taxr.ai and even ways to reach actual IRS agents when you get stuck on these practice scenarios.

Has anyone checked the "Get My Payment" tool on the IRS website for tracking the EIP 2? I thought that was supposed to show the status for all three stimulus payments.

I went through this exact same confusion last year! What really helped me was requesting both the "Record of Account" and "Account Transcript" for 2020 from the IRS website. The Account Transcript is particularly useful because it shows ALL transactions chronologically. For EIP 2, you're looking for: - Transaction code 846 (refund issued) - Date between December 2020 - January 2021 - Amount of $600 (or $1,200 if married filing jointly, plus $600 per qualifying dependent) One thing that caught me off guard - my EIP 2 was actually offset against a prior year balance I owed, so it didn't show up as a direct deposit in my bank account. This would still appear on your transcript but with additional codes showing the offset. If you don't see any EIP 2 transaction on your transcript, you're likely eligible to claim the Recovery Rebate Credit on an amended 2020 return (Form 1040X). And yes, if you do receive a refund from the amendment, the IRS will automatically apply it to any outstanding balances you owe, which could reduce your interest charges. Just make sure you're 100% certain before amending - the IRS will catch it if you claim a payment you already received!

This tax szn is str8 garbage. Everyone I know is getting random adjustments n codes. IRS playing games fr fr

Code 291 can be super confusing! I had the same issue last year and it drove me nuts trying to figure out what was going on. From what I learned, code 291 usually means they made an adjustment to your return - could be a math error, missing forms, or they corrected something. The key is looking at the amount column next to it. If it's a credit (positive), they owe you. If it's a debit (negative), you might owe them. Also check if there are any follow-up codes like 766 (credit to your account) or 768 (earned income credit). The IRS phone lines are absolutely terrible right now so don't feel bad about not getting through. Have you tried looking at your account transcript online? Sometimes that gives more detail than the return transcript.

Just a quick tip - make sure you pay the additional tax owed from that 1099 income ASAP, even before filing the second amendment. You'll minimize any interest and penalties that way. The IRS charges interest from the original due date of the return until you pay, regardless of when you discover the error. You can make a payment online using IRS Direct Pay and select "amended return" as the reason.

As someone who's been through the multiple amendment process myself, I want to emphasize that you should definitely include a detailed cover letter with your second 1040-X explaining the entire timeline. Something like "Filed original return with W-2 from main job only → Received forgotten W-2, filed first amendment → Now received unexpected 1099-NEC, filing second amendment." The IRS processors really appreciate this clarity, especially when amendments are filed close together. Also, since you're dealing with babysitting income, make sure you understand that this is typically considered self-employment income even if it was casual work. You'll need to file Schedule SE for the self-employment tax (Social Security and Medicare taxes), which adds about 15.3% on top of your regular income tax. One more thing - consider making an estimated payment now for the additional taxes owed. Interest accrues from the original April deadline regardless of when you discovered the error, so paying early can save you money even before your amendment is processed.

Has anyone dealt with investment allocation when consolidating HSAs? We've been running into this issue where my wife's HSA has good investment options but mine has terrible ones with high fees.

This is exactly the kind of optimization question I love seeing! You're on the right track thinking about this strategically. One thing to consider that hasn't been mentioned - if you're self-employed and have variable income, having your wife handle the full HSA contribution through her W-2 job provides more predictable cash flow planning. Her payroll deductions are steady and automatic, while your business income might fluctuate seasonally. Also, don't forget about the HSA catch-up contributions if either of you will be 55+ this year - that's an extra $1,000 you can contribute on top of the family limit. For the investment allocation question, I'd suggest treating your HSAs as part of your overall portfolio allocation rather than trying to optimize each account separately. Since you can both use either HSA for family medical expenses, think of them as one combined healthcare investment pot when deciding on asset allocation. The solo 401k route for your business income is probably the smart move here - especially since you mentioned not having enough total income to max both. The 401k limits are much higher and you get both employee and employer contribution opportunities as a business owner.