Thank you all SO MUCH for the helpful responses! I definitely don't receive any Trade Adjustment Assistance or PBGC payments, so it sounds like I shouldn't have included Form 8885 at all. I'm going to file an amended return this weekend to remove it. Would it be better to use a different tax service than H&R Block for the amendment since they're the ones who confused me in the first place?

You don't necessarily need to switch tax services. H&R Block should be able to prepare an amended return for you. However, if you're not confident in them after this experience, you might consider using a different service or even consulting with a tax professional for the amendment. The most important thing is to file the amendment correctly to remove Form 8885 entirely. Make sure the amended return clearly shows you're no longer claiming the Health Coverage Tax Credit. Also keep in mind that amended returns can take 16+ weeks to process, so patience will be necessary after you submit it.

Not OP but sometimes tax software will ask general questions about health coverage and depending on how you answer, it might add forms you don't actually need. I've had H&R Block try to add a premium tax credit form for me even though I had employer coverage and wasn't eligible.

The software asked me some questions about healthcare coverage, and I think I must have answered something incorrectly. I definitely didn't manually add Form 8885 - I had never even heard of it before this whole mess! I just checked my health insurance documentation, and I had regular employer coverage all year. Clearly I clicked something wrong in the interview questions. Lesson learned to pay closer attention to those details in the future!

Do you know if this works if you got insurance through healthcare.gov and not a state exchange? Some states don't have their own marketplace and use the federal one instead. Would the state line still help in that case?

If you got insurance through healthcare.gov rather than a state exchange, then you'd need to contact the federal marketplace directly. States that don't have their own exchanges wouldn't have dedicated support for this. But there's another angle you could try - contact your specific insurance company's customer service. Sometimes they can at least confirm details about your coverage that might help, even if they can't provide the actual 1095-A form (which has to come from the marketplace).

Thanks for this suggestion! If I can't get this resolved in the next week or so, I'll definitely file the extension. Really hoping it doesn't come to that though - I was planning to use my refund for some urgent car repairs. Does filing an extension delay when I would get my refund too?

Yes, filing an extension will delay your refund since the IRS can't process and issue a refund until you actually file your complete tax return. The extension only gives you more time to file the paperwork - it doesn't extend the time to pay any taxes due or receive refunds. If you're counting on that refund money, definitely try the suggestions others have mentioned for getting your 1095-A as quickly as possible. That Form 8962 is absolutely required if you received advance premium tax credits, and there's unfortunately no way around it.

Is it really worth switching tax software at this point? I'm halfway through my return in TurboTax and have a similar K-1 issue. Will H&R Block let me import what I've already done or would I have to start over?

Unfortunately, you'd likely need to start over if you switch software at this point. The import functions between competing tax products aren't great and often miss details. If you're already halfway through your return in TurboTax, your best option is probably to upgrade to their live help version rather than switching entirely. The TurboTax live tax pros can walk you through entering the statement items correctly, and that would be less frustrating than starting over in a new system. Just make sure you specifically ask about entering K-1 statement items, as some of the more general support people might not be familiar with the nuances.

You report K-1 income in the tax year shown on the K-1 itself, not when you physically received the form. If the K-1 says "2023" at the top, it goes on your 2023 return, even if you received it recently in 2024. Estates can take time to process, which is why K-1s often arrive late. If the K-1 is for 2023 and you've already filed your 2023 return, you'll need to file an amended return to include this information.

I did check that actually - FreeTaxUSA doesn't let you just do the state return separately unfortunately. You have to buy the whole package. Based on everyone's advice, I'm going to try the Oregon Department of Revenue direct filing option instead. Seems silly to pay $50 for a $5 refund!

Yep, same happened to my cousin. Ignored a small state return and got hit with a $125 penalty two years later. The state tax departments definitely do cross-check with federal returns.

Thanks for the warning! I'll definitely file the Oregon return then. I was leaning that way already but this confirms it's not worth the risk of penalties. I'm going to try the direct filing option through Oregon's website that others mentioned.

Wait, seriously? So if my husband has enough medical expenses to itemize but I don't, I can't take the standard deduction if we file separately? I had no idea about this rule!

Yes, that's exactly right. If one spouse itemizes on a separate return, the other spouse must also itemize - even if their itemized deductions are less than the standard deduction amount. It's one of those tax rules that can really hurt couples filing separately. This rule often creates a situation where a couple pays more in taxes by filing separately, even when it initially looks beneficial. For your example with medical expenses, you'd need to calculate whether the tax benefit from itemizing those expenses outweighs the loss of your standard deduction.

Does filing status affect the income limits for things like Roth IRA contributions? We're right on the edge of the phaseout range and I'm trying to figure out if filing separately would help or hurt.