I think your plan looks right, but here's one tip from my own experience - double check your 2024 contribution limit. The standard limit for 2024 is $7,000 (or $8,000 if your husband is 50 or older). That $2,500 number from TurboTax seems odd unless there's something specific about your situation limiting contributions.

Your approach looks solid overall! Just wanted to add one more consideration that might help with future years - once you've dealt with this excess contribution situation, consider setting up automatic contribution limits in your Fidelity account to prevent this from happening again. Most brokerages allow you to set annual contribution caps that will reject any deposits that would put you over the limit. Since you mentioned this was discovered late in the tax process, having that automatic safeguard could save you from penalties and paperwork headaches down the road. Also, keep detailed records of how you handled this excess contribution across both tax years. If the IRS ever questions the discrepancy between your Form 5498 amounts and your deduction amounts, having clear documentation of the excess contribution treatment will make any potential audit much smoother.

Thank you all for the helpful responses! I think I understand better now. The combination of starting a campus job plus how the scholarship was categorized seems to be the main issue. I'll go back and check my 1042-S forms from both years to see if there are any differences in how things were reported. I'm definitely going to try both the document analysis and getting someone from the IRS on the phone. My scholarship is really important for me to continue my studies, so I need to understand exactly how it's being taxed so I can budget properly. This has been really eye-opening about how complex international student taxation can be! I'll update once I figure everything out.

I'm glad you're getting some clarity on this! One thing I'd recommend is also checking with your university's international student office - they often have tax specialists who understand exactly how your school reports scholarships on the 1042-S forms. In my experience, universities sometimes change their reporting procedures between years, which can dramatically affect your tax calculations even when nothing else changes. They might have switched how they categorize your housing scholarship or changed which box they use on the 1042-S form. Also, when you're comparing your forms, pay special attention to: - Box 1 (Income Code) - this determines how the IRS treats your scholarship - Box 2 (Gross Income) vs Box 4 (Tax Withheld) - Any treaty exemption codes Your international student office can also help you understand if you should be filing Form 1040NR-EZ vs 1040NR, which can make a difference in your refund calculation. Good luck sorting this out!

I wanna add a different perspective here. I used to ONLY use free tax filing until last year when I started a small side business. My taxes suddenly got way more complicated with Schedule C, business expenses, quarterly payments, etc. I tried to use the free version but kept second-guessing every decision. Eventually broke down and paid for TurboTax Self-Employed, and honestly it was worth every penny. The guidance on business deductions alone saved me way more than the cost of the software. So maybe the answer is: use free when your situation is simple, but be willing to pay when things get complex. Just my 2 cents (which I properly reported as income lol).

You're absolutely right to question this! I've been in the same boat for years - simple W-2, maybe a 1099 here and there, standard deduction. The free options have worked perfectly for me. I think a lot of people just don't know about the truly free options. The big companies spend millions on advertising and make their free versions hard to find (as someone mentioned with the TurboTax controversy). Plus there's a psychology factor - people assume "free" means lower quality, even when it's literally the same calculations. That said, I've noticed the free services can be less hand-holdy. They assume you know what you're doing and don't walk you through every possible deduction like the paid versions do. For someone confident with basic taxes like us, that's fine. But I can see how someone who's nervous about taxes might prefer paying for more guidance and support. The real trap is when people get upsold mid-way through filing. You start with "free" then discover you need to pay to actually submit, or to include a form you didn't expect. Always read the fine print!

Be careful with the buildings aspect of your business sale. We sold our landscaping company last year and kept the main warehouse/office building. The buyer wanted to lease it from us, which seemed great at first. But we didn't account for how the business operations might change under new ownership. The new owners completely changed the business model which resulted in much heavier wear and tear on the property than we anticipated. We also had issues with them making unauthorized modifications to the building. Make sure you have a VERY detailed lease agreement if you're planning to keep the buildings and lease them to the buyer!

Great question! I went through a similar situation when we sold our family restaurant but kept the building. As others have mentioned, 1031 exchanges only work for "like-kind" real property, so your business assets (trademarks, IP, equipment, inventory) won't qualify. However, here's something that might help: if you're keeping the buildings and they're currently part of your business entity, you could potentially structure things to separate the real estate into its own entity before or after the sale. This would give you more flexibility for future 1031 exchanges if you decide to sell those buildings later and reinvest in other real estate. Also consider the timing - since you're keeping the buildings, you might generate rental income from leasing them to the buyer or other tenants. That rental income could help offset some of the tax burden from the business asset sale. Just make sure to get a solid lease agreement in place if the buyer wants to rent the space, and consider having the buildings appraised separately to establish their fair market value for future reference. One more thing - don't forget about installment sale treatment if the buyer is willing to structure payments over multiple years. This won't avoid the taxes entirely, but it can spread the tax burden over time which might keep you in lower tax brackets.

Thanks everyone for all the helpful advice! I wanted to give you an update on my situation. I finally received my CP12 refund yesterday - exactly 7 weeks from the April 22nd notice date, so a bit longer than the 4-6 weeks they promised but not too bad considering how backed up the IRS has been. I took several pieces of advice from this thread. I used the "Where's My Refund" tool that CosmicCaptain mentioned, which helped me track the progress. I also started implementing Ava's suggestions about documenting my farm business activities more thoroughly - created a separate business account and started keeping better records of my marketing efforts at farmers markets. One thing that really helped ease my anxiety was understanding that the loss carryover from 2022 doesn't count as a new loss year for the hobby farm rules. I was really worried about that, but now I feel more confident about my tax situation going forward. Miguel's warning about potential follow-up notices is something I'm keeping in mind - I'm not spending the extra refund money right away, just in case there are any additional adjustments. Better to be safe than sorry! This community has been incredibly helpful. It's nice to know there are people who understand these complex tax situations and are willing to share their experiences.

Glad to hear you got your refund! Seven weeks is actually pretty reasonable given the current IRS processing delays. Your proactive approach to documenting your farm business is smart - especially keeping that separate business account and tracking your farmers market activities. Just wanted to add one more tip for anyone else dealing with farm losses: make sure you're tracking the time you spend on farm activities separately from any personal enjoyment of the property. The IRS looks for evidence that you're putting in serious effort to make the operation profitable, not just maintaining a hobby farm. Keep a simple log of hours spent on business activities like planting, harvesting, marketing, bookkeeping, etc. Also, if you haven't already, consider joining your local farm bureau or agricultural extension programs. Membership and participation in these organizations shows the IRS that you're treating farming as a legitimate business and staying current with industry practices.